§ 264a.5. What are the penalties for violating these special post-employment restrictions?
322 words·~1 min read·
/us/cfr/t12/s§ 264a.5·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Penalties under section 10(k) of FDI Act. A senior examiner of the Federal Reserve who, after leaving the employment of the Federal Reserve, violates the restrictions set forth in § 264a.3 shall, in accordance with section 10(k)(6) of the FDI Act, be subject to one or both of the following penalties—
(1)An order—
(i)Removing the individual from office or prohibiting the individual from further participation in the affairs of the relevant state member bank, bank holding company, savings and loan holding company, foreign bank or other depository institution or company for a period of up to five years; and
(ii)Prohibiting the individual from participating in the affairs of any insured depository institution for a period of up to five years; and/or
(2)A civil monetary penalty of not more than $250,000.
(b)Imposition of penalties. The penalties described in paragraph
(a)of this section shall be imposed by the appropriate Federal banking agency as determined under section 10(k)(6) of the FDI Act, which may be an agency other than the Federal Reserve.
(c)Scope of prohibition orders. Any senior examiner who is subject to an order issued under paragraph
(a)of this section shall, as required by section 10(k)(6)(B) of the FDI Act, be subject to paragraphs
(6)and
(7)of section 8(e) of the FDI Act in the same manner and to the same extent as a person subject to an order issued under section 8(e).
(d)Procedures. The procedures applicable to actions under paragraph
(a)of this section are provided in section 10(k)(6) of the FDI Act.
(e)Other penalties. The penalties set forth in paragraph
(a)of this section are not exclusive, and a senior examiner who violates the restrictions in § 264a.3 also may be subject to other administrative, civil or criminal remedies or penalties as provided in law. [70 FR 69638, Nov. 17, 2005, as amended at 76 FR 56606, Sept. 13, 2011]