[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: 31CFR501.706]



[Page 57]

 

                  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. 501.706  Prepenalty Notice; issuance by Director.



    (a) When required. If the Director has reason to believe there has 

occurred a violation of any provision of parts 500 or 515 of this 

chapter or a violation of the provisions of any license, ruling, 

regulation, order, direction or instruction issued by or pursuant to the 

direction or authorization of the Secretary pursuant to parts 500 or 515 

of this chapter or otherwise under the Trading With the Enemy Act, and 

the Director determines that further civil proceedings are warranted, 

the Director shall issue a Prepenalty Notice. The Prepenalty Notice may 

be issued whether or not another agency has taken any action with 

respect to the matter.

    (b) Contents of notice.

    (1) Facts of violation. The Prepenalty Notice shall describe the 

alleged violation, specify the laws and regulations allegedly violated, 

and state the amount of the proposed monetary penalty.

    (2) Right to respond. The Prepenalty Notice shall inform the 

respondent of respondent's right to make a written presentation within 

the time prescribed in Sec. 501.707 as to why the respondent believes 

there should be no finding of a violation or why, if the respondent 

admits the violation, a monetary penalty should not be imposed or why, 

if imposed, the monetary penalty should be in a lesser amount than 

proposed. The Prepenalty Notice shall also inform the respondent that:

    (i) The act of submitting a written response by the respondent is a 

factor that may result in a lower penalty absent any aggravating 

factors; and

    (ii) If the respondent fails to respond to the Prepenalty Notice 

within the applicable 60-day period set forth in Sec. 501.707, the 

Director may proceed with the issuance of a Penalty Notice.

    (3) Right to request a hearing. The Prepenalty Notice shall inform 

the respondent of respondent's right, if a subsequent Penalty Notice is 

issued, to request an administrative hearing. The Director will not 

consider any request for an administrative hearing until a Penalty 

Notice has been issued.