In  cases  where  the  violation  has  been  found  to  fit  in
the  "honest  mistake"  category,  the  appropriate  remedy  is:

1.  an  assurance  that  the  violation  will  not  be  repeated;
and

2.  restitution  to  parties  wronged  by  the  violation
(refund  or  rollback) ;  or

3.  correction  of  the  violation  through  a  bank  adjust-
ment (where  the  violation  did  not  result  in  finan-
cial harm  to  any  party).
However,  since  the  violation  resulted  from  an  honest
mistake,  a  penalty  is  not  appropriate.   This  policy  is  in
keeping  with  the  practice  of  other  Federal  agencies.   It  is
also  a  commonsense  interpretation  of  the  term  "civil  penalty,"
as  used  in  the  statute,  which  carries  a  connotation  of  some
unjustified  act  deserving  of  punishment.
In  every  case  where  a  violation  has  been  determined  not
to  warrant  a  penalty,  the  compliance  file  should  contain  a
recitation  of  the  basis  supporting  that  determination.
Procedures  for  Seeking  Civil  Penalties

The  FEA  does  not  have  statutory  authority  to  itself
impose  penalties  upon  a  party  found  to  be  in  violation  of
its  regulations.   Only  a  federal  district  court  can  impose
either  civil  or  criminal  penalties  on  an  unwilling  party,


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and  it  does  so  in  a  suit  brought  on  behalf  of  the  FEA  by  the
Department  of  Justice.
