[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: 31CFR592.601]

[Page 927]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 592_ROUGH DIAMONDS CONTROL REGULATIONS--Table of Contents
 
                           Subpart F_Penalties
 
Sec. 592.601  Penalties.


    (a) Attention is directed to section 8 of the Clean Diamond Trade 
Act (the ``Act'') (Pub. L. 108-19), which provides that:
    (1) A civil penalty not to exceed $10,000 per violation may be 
imposed on any person who violates, or attempts to violate, any order or 
regulation issued under the Act;
    (2) Whoever willfully violates, or willfully attempts to violate, 
any order or regulation issued under this Act shall, upon conviction, be 
fined not more than $50,000, or, if a natural person, may be imprisoned 
for not more than 10 years, or both; and any officer, director, or agent 
of any corporation who willfully participates in such violation may be 
punished by a like fine, imprisonment, or both; and
    (3) Those customs laws of the United States, both civil and 
criminal, including those laws relating to seizure and forfeiture, that 
apply to articles imported in violation of such laws shall apply with 
respect to any rough diamond imported in violation of the Act.

    Note to paragraph (a). As reflected in paragraphs (a)(1) and (2) 
above, section 8(a) of the Clean Diamond Trade Act (Pub. L. 108-19) 
establishes penalties with respect to any violation of any regulation 
issued under the Act. OFAC prepenalty, penalty, and administrative 
collection procedures relating to such violations are set forth below in 
Sec. Sec. 592.602 through 592.605. Section 8(c) of the Act also 
authorizes the United States Bureau of Customs and Border Protection and 
the United States Bureau of Immigration and Customs Enforcement, as 
appropriate, to enforce the penalty provisions set forth in paragraph 
(a) and to enforce the laws and regulations governing exports of rough 
diamonds, including with respect to the validation of the Kimberley 
Process Certificate by the Bureau of the Census. The OFAC civil penalty 
procedures set forth below are separate from, and independent of, any 
penalty procedures that may be followed by the United States Bureau of 
Customs and Border Protection and the United States Bureau of 
Immigration and Customs Enforcement in their exercise of the authorities 
set forth in section 8(c) of the Clean Diamond Trade Act.

    (b) The criminal penalties provided in the Act are subject to 
increase pursuant to 18 U.S.C. 3571.
    (c) Attention is also directed to 18 U.S.C. 1001, which provides 
that whoever, in any matter within the jurisdiction of the executive, 
legislative, or judicial branch of the Government of the United States, 
knowingly and willfully falsifies, conceals, or covers up by any trick, 
scheme, or device, a material fact, or makes any materially false, 
fictitious, or fraudulent statement or representation or makes or uses 
any false writing or document knowing the same to contain any materially 
false, fictitious, or fraudulent statement or entry shall be fined under 
title 18, United States Code, or imprisoned not more than five years, or 
both.
    (d) Violations of this part may also be subject to relevant 
provisions of other applicable laws.