U.S. Department of State Fiscal Year 2019 Agency Financial Report

FEDERAL CIVIL PENALTIES INFLATION ADJUSTMENTS Statutory Authority Penalty Year Enacted Latest Year of Adjustment Current Penalty Level ($ Amount or Range) Location for Penalty Update Details Arms Export Control Act of 1976, 22 U.S.C. 2778(e) International Traffic in Arms Regulations Violations – Export of Defense Articles and Defense Service 1985 2019 $1,163,217 Federal Register 84 Arms Export Control Act of 1976, 22 U.S.C. 2779a International Traffic in Arms Regulations Violations – Prohibition on Incentive Payments 1994 2019 $845,764 Federal Register 84 Arms Export Control Act of 1976, 22 U.S.C. 2780 International Traffic in Arms Regulations Violations – Transactions with Countries Supporting Acts of International Terrorism 1989 2019 $1,006,699 Federal Register 84 False Claims Act of 1986, 31 U.S.C. 3729-3733 Penalty imposed on persons and companies who defraud governmental programs 1986 2019 $11,463 – $343,903 Federal Register 84 Chemical Weapons Convention Act of 1998, 22 U.S.C. 6761(a)(1)(A) Prohibited acts relating to inspections 1998 2019 $38,549 Federal Register 84 Chemical Weapons Convention Act of 1998, 22 U.S.C. 6761(a)(1)(B) Recordkeeping violations 1998 2019 $7,710 Federal Register 84 31 U.S.C. 1352 – Limitation on use of appropriated funds Penalties for both improper expenditures and failure to disclose. First time offenders 1989 2019 $19,809 Federal Register 84 31 U.S.C. 1352 – Limitation on use of appropriated funds Penalties for both improper expenditures and failure to disclose. Other offenders 1989 2019 $20,134 – $201,340 Federal Register 84 F ederal C ivil P enalties I nflation A djustment A ct The Federal Civil Penalties Inflation Adjustment Act of 1990 established annual reporting requirements for civil monetary penalties assessed and collected by Federal agencies. The Department assesses civil fines and penalties on individuals for such infractions as violating the terms of munitions licenses, exporting unauthorized defense articles and services, and valuation of manufacturing license agreements. In 2019, the Department assessed $13.4 million in penalties against two companies, and collected $6.1 million of outstanding penalties from three companies. The balance outstanding as of September 30, 2019 was $14.6 million. The following table lists the current penalty level for infractions governed by the Department. E lectronic P ayments For 2019, the Department disbursed approximately 3.9 million payments and 99 percent of them were processed through Electronic Funds Transfer (EFT). For overseas operations, the EFT percentage increased from a 2018 percentage of 98.9 percent to a 2019 percentage of 99.01 which is a major accomplishment given the complexities of banking operations in some foreign countries. Domestic operations EFT percentage improved from 99.2 percent in 2018 to 99.3 percent in 2019. 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 143 PAYMENT INTEGRITY AND OTHER LAWS AND REGULATIONS | OTHER INFORMATION