Sec. 106. Treatment of executive compensation and personal liability
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The appropriate Federal banking agencies, the Securities and Exchange Commission, the Commodities Futures Trading Commission, and the Financial Crimes Enforcement Network shall issue regulations prohibiting financial institutions that are subject to an anti-money laundering program requirement under chapter X of title 31, Code of Federal Regulations, from providing executive compensation based on any criteria that could undermine compliance by individuals with the requirements of subchapter II of chapter 53 of title 31, United States Code, section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ), or section 123 of Public Law 91–508 .
An officer, director, employee, or other institution-affiliated party of a financial institution that is subject to an anti-money laundering program requirement under chapter X of title 31, Code of Federal Regulations, who is required by a Federal bank secrecy law that provides for personal liability, or any rule or order promulgated by an appropriate Federal banking agency, the Securities and Exchange Commission, the Commodity Futures Trading Commission, or the Financial Crimes Enforcement Network thereunder, to repay previously earned executive compensation or pay a civil money penalty— shall be personally liable for the amounts so owed; and may not, directly or indirectly, insure or hedge against, or otherwise transfer the risks associated with, personal liability for the amounts so owed.
Paragraph
(1)shall not preclude a person from being provided funds necessary to defend against an action to recover previously earned executive compensation or a civil money penalty described under paragraph (1)— from the relevant financial institution subject to an anti-money laundering program under chapter X of title 31, Code of Federal Regulations; under an insurance policy; or pursuant to court order. For purposes of this section: The term appropriate Federal banking agency has the meaning given such term under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). The term executive compensation means anything of value, regardless of the form in which provided, that is given by any institution subject to subsection
(a)or its parent company to an officer, director, employee, or other institution-affiliated party in return for that individual’s service to such entity. The term Federal bank secrecy law means— the reporting requirements set forth in section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); section 123 of Public Law 91–508 ; and subchapter II of chapter 53 of title 31, United States Code. The term institution-affiliated party — has the meaning given such term under subsection
(u)of section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ); and shall apply with respect to an institution subject to subsection
(a)and its parent company to the same extent as such subsection applies to an insured depository institution.
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- Pub. L. 91-508
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Sec. 106
Treatment of executive compensation and personal liability
Pub. L.Pub. L. 91-508
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