Today, the Consumer Financial Protection Bureau (CFPB or Bureau) published a policy statement in the Federal Register outlining its approach to addressing criminally liable regulatory offenses. This publication comes in response to Executive Order 14294, issued by President Trump on May 9, 2025, which aims to combat overcriminalization in federal regulations.
Overview
The CFPB’s policy statement details its plan to manage criminal regulatory offenses, defined as federal regulations enforceable by criminal penalties. The Bureau, responsible for administering and enforcing federal consumer financial laws, has issued regulations under statutes such as the Consumer Financial Protection Act, Truth in Lending Act, Real Estate Settlement Procedures Act, and Electronic Fund Transfers Act, some of which carry criminal penalties.
Referral Process to the Department of Justice
The CFPB may refer alleged violations of criminal regulatory offenses to the Department of Justice. In making these referrals, the Bureau will consider factors such as the harm caused by the offense, potential gain to the defendant, the defendant’s specialized knowledge, and awareness of the unlawfulness of their conduct.
Steps to Address Criminal Regulatory Offenses
Consistent with the Executive Order, the CFPB plans to:
- Submit a report to the Office of Management and Budget (OMB) within 365 days, listing all criminal regulatory offenses enforceable by the Bureau or the Department of Justice, along with potential penalties and applicable mens rea standards.
- Consider whether offenses are included in this report when deciding on referrals to the Department of Justice or the Bureau’s Inspector General.
- Examine statutory authorities to determine if a background mens rea standard can be adopted for criminal regulatory offenses.
- Include statements in future rulemakings identifying criminal regulatory offenses and authorizing statutes, with explicit mens rea requirements.
