[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: 31CFR501.710]



[Page 59-60]

 

                  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. 501.710  Settlement.



    (a) Availability. Either the Director or any respondent may, at any 

time during the administrative civil penalty process described in this 

subpart, propose an offer of settlement. The amount accepted in 

settlement may be less than the civil penalty that might be imposed in 

the event of a formal determination of violation. Upon mutual agreement 

by the Director and a respondent on the terms of a settlement, the 

Director shall issue an Order of Settlement.

    (b) Procedure.

    (1) Prior to issuance of Penalty Notice. Any offer of settlement 

made by a respondent prior to the issuance of a Penalty Notice shall be 

submitted, in writing, to the Chief of Civil Penalties, Office of 

Foreign Assets Control, U.S. Department of the Treasury, 1500 

Pennsylvania Avenue, NW., Washington, DC 20220.

    (2) After issuance of Penalty Notice. Any offer of settlement made 

by a respondent after issuance of a Penalty Notice shall state that it 

is made pursuant to this section; shall recite or incorporate as a part 

of the offer the provisions of paragraphs (b)(5)(ii) and (b)(6) of this 

section; shall be signed by the respondent making the offer, and not 

only by his or her representative; and shall be submitted to the Chief 

Counsel.

    (3) Extensions of time. The submission of any settlement offer does 

not provide a basis for adjourning or otherwise delaying all or any 

portion of the administrative civil penalty process.

    (i) Prior to issuance of Order Instituting Proceedings. Any 

respondent (or potential respondent in the case of a pending Prepenalty 

Notice) may request, in writing, that the Director withhold issuance of 

any such notice, or grant an extension of time to respond to a any such 

Notice, for a period not to exceed 60 days for the exclusive purpose of 

effecting settlement. The Director may grant any such request, in 

writing, under terms and conditions within his or her discretion.

    (ii) After issuance of Order Instituting Proceedings. Upon mutual 

agreement of the Director and a respondent, the Administrative Law Judge 

may grant an extension of time, for a period not to exceed 60 days, for 

the exclusive purpose of effecting settlement.

    (4) Views of Administrative Law Judge. Where an Administrative Law 

Judge is assigned to a proceeding, the Director or the respondent may 

request that the Administrative Law Judge express his or her views 

regarding the appropriateness of the offer of settlement. A request for 

the Administrative Law Judge to express his or her views on an offer of 

settlement or otherwise to participate in a settlement conference 

constitutes a waiver by the party making the request of any right to 

claim bias or prejudgment by the Administrative Law Judge based on the 

views expressed.

    (5) Waivers.

    (i) By submitting an offer of settlement, a respondent making the 

offer waives, subject to acceptance of the offer:

    (A) All hearings pursuant to section 16 of the Trading with the 

Enemy Act (50 U.S.C. App. 16);

    (B) The filing of proposed findings of fact and conclusions of law;

    (C) Proceedings before, and a decision by, an Administrative Law 

Judge;

    (D) All post-hearing procedures; and

    (E) Judicial review by any court.

    (ii) By submitting an offer of settlement the respondent further 

waives:

    (A) Such provisions of this subpart or other requirements of law as 

may be construed to prevent any member of the Director's staff, or 

members of the Office of Chief Counsel or other counsel



[[Page 60]]



assigned by the General Counsel, from participating in or advising the 

Director as to any order, opinion, finding of fact, or conclusion of law 

to be entered pursuant to the offer; and

    (B) Any right to claim bias or prejudgment by the Director based on 

the consideration of or discussions concerning settlement of all or any 

part of the proceeding.

    (6) If the Director rejects the offer of settlement, the respondent 

shall be so notified in writing and the offer of settlement shall be 

deemed withdrawn. The rejected offer shall not constitute a part of the 

record in any proceeding against the respondent making the offer, 

provided, however, that rejection of an offer of settlement does not 

affect the continued validity of waivers pursuant to paragraph (b)(5) of 

this section with respect to any discussions concerning the rejected 

offer of settlement.

    (7) No settlement offer or proposal, or any subsequent negotiation 

or resolution, is admissible as evidence in any administrative 

proceeding initiated by the Director.