Plain-English summary
Court rules BSA’s $10,000 nonwillful penalty applies per report, not per account
The Court held that the Bank Secrecy Act’s $10,000 maximum civil penalty for nonwillful failures to file required foreign financial account reports applies to each required report, not separately to every foreign account. The Fifth Circuit’s contrary ruling was reversed and the case was remanded.
Why this matters
This decision limits the government’s ability to multiply civil fines for nonwillful reporting failures by treating each foreign account as a separate offense. It reduces potential penalties for people who fail to file required reports about multiple foreign accounts when the failure was not willful, clarifying how penalties are calculated under the Bank Secrecy Act.
Who may feel it
- U.S. residents and citizens with foreign financial accounts
- Taxpayers and financial account holders who failed to file required foreign account reports
- Tax and compliance professionals who advise clients about FBAR and related reporting
- U.S. Treasury, IRS, and Justice Department enforcement programs
Key questions