Civil Money Penalty - CMP

DEFINITION of 'Civil Money Penalty - CMP'

A punitive fine imposed by a civil court on an entity that has profited from illegal or unethical activity. The Securities and Exchange Commission imposes civil money penalties that are usually equal to the gains made from whatever activity it has deemed to be illegal or unethical.

BREAKING DOWN 'Civil Money Penalty - CMP'

Civil money penalties are not limited to securities law violations. They may be imposed to punish individuals or organizations for violating a variety of laws or regulations.

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