ALEXANDRIA, Va. (9/18/15)--The National Credit Union Administration board Thursday approved a final rule adjusting the maximum amount of civil money penalties for inflation. The final rule will become effective immediately upon publication in the Federal Register.

The inflation adjustment is based on the percentage increase in the Consumer Price Index for all urban customers, as published by the U.S Department of Labor.

NCUA Chair Debbie Matz said the penalties are intended to be a deterrent for credit unions that file their call reports late, not a punishment.

“Since we announced the policy of assessing civil monetary penalties for late Call Report filers, the number of late filers has dropped from nearly 1,100 to 25,” she said. “So, the penalties are working as intended, as a deterrent. It’s also important to know the proceeds from these penalties go to the U.S. Treasury, not NCUA.”

Each federal agency is required by law to periodically adjust civil money penalties to account for the rate of inflation. The NCUA last made an adjustment in 2009.

 The process is mandatory, and agencies are given no discretion in calculating the adjustments, so the rule was issued without public comment, as allowed under the Administrative Procedures Act.