The Office of Thrift Supervision has increased its maximum civil money penalties by 10%. Congress passed a law this year that requires federal agencies to adjust their maximum civil penalties for inflation.

The OTS now can impose a penalty of $1.1 million per day for the most serious violations of laws pertaining to savings associations, an increase of $100,000 over the maximum established in 1989.

The agency published a list of new maximum penalties in the Oct. 31 Federal Register. They apply to violations occurring on Nov. 1 or later.

The agency may impose civil penalties on savings associations when they fail to file accurate, timely financial reports, to cooperate with regulatory exams, or to maintain the safety and soundness of their institutions.

Actual civil money penalties rarely approach the maximum permitted by law. For example, in 1995 the OTS levied fines totaling $270,960 in 29 cases.

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