[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: 31CFR542.702]



[Page 249]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 542_SYRIAN SANCTIONS REGULATIONS--Table of Contents

 

                           Subpart G_Penalties

 

Sec. 542.702  Prepenalty notice.



    (a) When required. If the Director of the Office of Foreign Assets 

Control has reason to believe that there has occurred a violation of any 

provision of this part 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 of the 

Treasury pursuant to this part or otherwise under the International 

Emergency Economic PowersAct, and the Director determines that further 

civil proceedings are warranted, the Director shall notify the alleged 

violator of the agency's intent to impose a monetary penalty by issuing 

a prepenalty notice. The prepenalty notice shall be in writing. 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 violation, specify the laws and regulations 

allegedly violated, and state the amount of the proposed monetary 

penalty.

    (2) Right to respond. The prepenalty notice also shall inform the 

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

within the applicable 30 day period set forth in Sec. 542.703 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.

    (c) Informal settlement prior to issuance of prepenalty notice. At 

any time prior to the issuance of a prepenalty notice, an alleged 

violator may request in writing that, for a period not to exceed sixty 

(60) days, the agency withhold issuance of the prepenalty notice for the 

exclusive purpose of effecting settlement of the agency's potential 

civil monetary penalty claims. In the event the Director of the Office 

of Foreign Assets Control grants the request, under terms and conditions 

within his discretion, the Office of Foreign Assets Control will agree 

to withhold issuance of the prepenalty notice for a period not to exceed 

60 days and will enter into settlement negotiations of the potential 

civil monetary penalty claim.