[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: 31CFR501.707]



[Page 57-58]

 

                  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. 501.707  Response to Prepenalty Notice.



    (a) Deadline for response.

    (1) The respondent shall have 60 days after the date of service of 

the Prepenalty Notice pursuant to Sec. 501.705(a) to respond thereto. 

The response, signed and dated, shall be served as provided in Sec. 

501.705(b).

    (2) In response to a written request by the respondent, the Director 

may,



[[Page 58]]



at his or her discretion for the purpose of conducting settlement 

negotiations or for other valid reasons, grant additional time for a 

respondent to submit a response to the Prepenalty Notice.

    (3) The failure to submit a response within the time period set 

forth in this paragraph (a), including any additional time granted by 

the Director, shall be deemed to be a waiver of the right to respond to 

the Prepenalty Notice.

    (b) Form and contents of response.

    (1) In general. The response need not be in any particular form, but 

must be typewritten and contain the heading ``Response to Prepenalty 

Notice'' and the Office of Foreign Assets Control identification number 

shown near the top of the Prepenalty Notice. It should be responsive to 

the allegations contained therein and set forth the nature of the 

respondent's admission of the violation, or defenses and claims for 

mitigation, if any.

    (i) The response must admit or deny specifically each separate 

allegation of violation made in the Prepenalty Notice. If the respondent 

is without knowledge as to an allegation, the response shall so state, 

and such statement shall constitute a denial. Any allegation not 

specifically addressed in the response shall be deemed admitted.

    (ii) The response must set forth any additional or new matter or 

arguments the respondent seeks, or shall seek, to use in support of all 

defenses or claims for mitigation. Any defense the respondent wishes to 

assert must be included in the response.

    (iii) The response must accurately state (for each respondent, if 

applicable) the respondent's full name and address for future service, 

together with a current telephone and, if applicable, facsimile machine 

number. If respondent is represented, the representative's full name and 

address, together with telephone and facsimile numbers, may be provided 

instead of service information for the respondent. The respondent or 

respondent's representative of record is responsible for providing 

timely written notice to the Director of any subsequent changes in the 

information provided.

    (iv) Financial disclosure statement requirement. Any respondent who 

asserts financial hardship or an inability to pay a penalty shall 

include with the response a financial disclosure statement setting forth 

in detail the basis for asserting the financial hardship or inability to 

pay a penalty, subject to 18 U.S.C. 1001.

    (2) Settlement. In addition, or as an alternative, to a written 

response to a Prepenalty Notice, the respondent or respondent's 

representative may seek settlement of the alleged violation(s). See 

Sec. 501.710. In the event of settlement prior to the issuance of a 

Penalty Notice, the claim proposed in the Prepenalty Notice will be 

withdrawn and the respondent will not be required to make a written 

response to the Prepenalty Notice. In the event no settlement is 

reached, a written response to the Prepenalty Notice is required 

pursuant to paragraph (c) of this section.