The Department of the Treasury's Office of Investment Security has updated the maximum civil monetary penalties linked to the Outbound Investment Security Program. These updates are part of an annual inflation adjustment required by law and will be effective until January 14, 2026. The new maximum penalty for violations is $377,700 or twice the amount of the transaction involved, whichever is greater. These changes are mandated by the Federal Civil Penalties Inflation Adjustment Act, with the specific multiplier for 2025 being 1.02598.
Simple Explanation
The government is changing the rules for how much money people or companies have to pay if they break certain investment rules in countries they’re worried about. Now, they can charge up to $377,700 or twice the amount the rule-breaker was dealing with, whichever is bigger.