U.S. Department of State Fiscal Year 2020 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 2020 $1,183,736 85 FR 2020-2022 (January 14, 2020) Arms Export Control Act of 1976, 22 U.S.C. 2779a International Traffic in Arms Regulations Violations – Prohibition on Incentive Payments 1994 2020 $860,683 85 FR 2020-2022 (January 14, 2020) 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 2020 $1,024,457 85 FR 2020-2022 (January 14, 2020) False Claims Act of 1986, 31 U.S.C. 3729-3733 Penalty imposed on persons and companies who defraud governmental programs 1986 2020 $11,665 – $349,969 85 FR 2020-2022 (January 14, 2020) Chemical Weapons Convention Act of 1998, 22 U.S.C. 6761(a)(1)(A) Prohibited acts relating to inspections 1998 2020 $39,229 85 FR 2020-2022 (January 14, 2020) Chemical Weapons Convention Act of 1998, 22 U.S.C. 6761(a)(1)(B) Recordkeeping violations 1998 2020 $7,846 85 FR 2020-2022 (January 14, 2020) 31 U.S.C. 1352 – Limitation on use of appropriated funds Penalties for both improper expenditures and failure to disclose. First time offenders 1989 2020 $20,158 85 FR 2020-2022 (January 14, 2020) 31 U.S.C. 1352 – Limitation on use of appropriated funds Penalties for both improper expenditures and failure to disclose. Other offenders 1989 2020 $20,489 – $204,892 85 FR 2020-2022 (January 14, 2020) 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 2020, the Department assessed $11 million in penalties against two companies, and collected $7.8 million of outstanding penalties from five companies. The balance outstanding as of September 30, 2020 was $12.3 million. The “Federal Civil Penalties Inflation Adjustments” table lists the current penalty level for infractions governed by the Department. 2020 A gency F inanci al R eport U ni ted S tates D epartment of S tate | 145 PAYMENT INTEGRITY AND OTHER LAWS AND REGULATIONS | OTHER INFORMATION