[Code of Federal Regulations]

[Title 31, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR501.703]



[Page 54]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY

 

PART 501_REPORTING, PROCEDURES AND PENALTIES REGULATIONS--Table of 

Contents

 

          Subpart D_Trading With the Enemy Act (TWEA) Penalties

 

Sec. 501.703  Overview of civil penalty process and construction of rules.



    (a) The administrative process for enforcing TWEA sanctions programs 

proceeds as follows:

    (1) The Director of the Office of Foreign Assets Control will notify 

a suspected violator (hereinafter ``respondent'') of an alleged 

violation by issuing a ``Prepenalty Notice.'' The Prepenalty Notice 

shall describe the alleged violation(s) and include a proposed civil 

penalty amount.

    (2) The respondent will have 60 days from the date the Prepenalty 

Notice is served to make a written presentation either defending against 

the alleged violation or admitting the violation. A respondent who 

admits a violation may offer information as to why a monetary penalty 

should not be imposed or why, if imposed, the monetary penalty should be 

in a lesser amount than proposed.

    (3) Absent a settlement agreement or a finding that no violation 

occurred, the Director of the Office of Foreign Assets Control will 

issue a ``Penalty Notice.'' The respondent will have 30 days from the 

date of service to either pay the penalty or request a hearing.

    (4) If the respondent requests a hearing, the Director of the Office 

of Foreign Assets Control will have two options:

    (i) The Director may issue an ``Order Instituting Proceedings'' and 

refer the matter to an Administrative Law Judge for a hearing and 

decision; or

    (ii) The Director may determine to discontinue the penalty action 

based on information presented by the respondent.

    (5) Absent review by a Secretary's designee, the decision of the 

Administrative Law Judge will become the final decision of the 

Department without further proceedings.

    (6) If review is taken by a Secretary's designee, the Secretary's 

designee reaches the final decision of the Department.

    (7) A respondent may seek judicial review of the final decision of 

the Department.

    (b) Construction of rules. The rules contained in this subpart shall 

be construed and administered to promote the just, speedy, and 

inexpensive determination of every action. To the extent there is a 

conflict between the rules contained in this subpart and a procedural 

requirement contained in any statute, the requirement in the statute 

shall control.