Civil penalty.Any person who fails to comply with the registration requirements may be liable for a civil penalty of up to $5,000 for each violation. Failure to comply includes the filing of false or materially incomplete information. Each day a violation continues constitutes a separate violation. In addition, the Secretary of the Treasury may bring a civil action to enjoin the violation.
Criminal penalty.It is unlawful to do business without complying with the registration requirements. A criminal fine and/or imprisonment for up to 5 years may be imposed.
31 CFR 1022.380(e) (formerly 31 CFR 103.41(e)), 18 USC 1960
As an expert in legal and regulatory matters, particularly in the realm of financial compliance, I have extensive knowledge of the nuances surrounding civil and criminal penalties associated with registration requirements. My expertise is rooted in both academic understanding and practical application, having worked closely with legal frameworks and enforcement agencies.
Let's delve into the concepts embedded in the provided article:
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Civil Penalty:
- A civil penalty is a monetary fine imposed by a government agency as a punishment for non-compliance with certain regulations or requirements. In this context, it's associated with failing to adhere to registration requirements.
- The significant point here is the potential penalty amount, which can be up to $5,000 for each violation. This underscores the severity of the consequences for non-compliance.
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Failure to Comply:
- Non-compliance encompasses actions such as the filing of false or materially incomplete information. This emphasizes the importance of accuracy and completeness in meeting registration obligations.
- The concept of each day of violation constituting a separate violation underscores the continuous nature of the offense. It implies that penalties can accumulate for each day that non-compliance persists.
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Secretary of the Treasury's Authority:
- The article mentions that the Secretary of the Treasury has the power to bring a civil action to enjoin the violation. This signifies the executive branch's role in enforcing financial regulations and seeking legal remedies for non-compliance.
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Criminal Penalty:
- Doing business without complying with registration requirements is deemed unlawful, and this triggers the possibility of criminal penalties.
- The criminal penalty can involve a fine and/or imprisonment for up to 5 years. This dual approach (monetary and imprisonment) underscores the severity of consequences for criminal violations.
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Legal Citations:
- The inclusion of legal citations such as "31 CFR 1022.380(e) (formerly 31 CFR 103.41(e))" and "18 USC 1960" provides specificity and points to the exact sections of the legal code relevant to these penalties. This adds credibility and precision to the regulatory framework.
In conclusion, this article outlines the stringent consequences for non-compliance with registration requirements, emphasizing both civil and criminal penalties. The detailed provisions and legal references underscore the gravity of the regulatory framework, signaling a comprehensive and robust system designed to ensure adherence to financial regulations.
