[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR536.703]

[Page 683-684]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 536_NARCOTICS TRAFFICKING SANCTIONS REGULATIONS--Table of Contents
 
                           Subpart G_Penalties
 
Sec. 536.703  Response to prepenalty notice.

    (a) Time within which to respond. The respondent shall have 30 days 
from the

[[Page 684]]

date of mailing of the prepenalty notice to respond in writing to the 
Director of the Office of Foreign Assets Control.
    (b) Form and contents of written response. The written response need 
not be in any particular form, but shall contain information sufficient 
to indicate that it is in response to the prepenalty notice. It should 
respond to the allegations in the prepenalty notice and set forth the 
reasons why the person believes the penalty should not be imposed or, if 
imposed, why it should be in a lesser amount than proposed.
    (c) Informal settlement. In addition or as an alternative to a 
written response to a prepenalty notice pursuant to this section, the 
respondent or respondent's representative may contact the Office of 
Foreign Assets Control as advised in the prepenalty notice to propose 
the settlement of allegations contained in the prepenalty notice and 
related matters. In the event of settlement at the prepenalty stage, the 
prepenalty notice will be withdrawn, the respondent is not required to 
take a written position on allegations contained in the prepenalty 
notice, and the Office of Foreign Assets Control will make no final 
determination as to whether a violation occurred. The amount accepted in 
settlement of allegations in a prepenalty notice may vary from the civil 
penalty that might finally be imposed in the event of a formal 
determination of violation. In the event no settlement is reached, the 
30-day period specified in paragraph (a) of this section for written 
response to the prepenalty notice remains in effect unless additional 
time is granted by the Office of Foreign Assets Control.