[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: 31CFR592.601]



[Page 447-448]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 592_ROUGH DIAMONDS CONTROL REGULATIONS--Table of Contents

 

                           Subpart F_Penalties

 

Sec. 592.601  Penalties.





    (a) Attention is directed to section 8 of the Clean Diamond Trade 

Act (the ``Act'') (Pub. L. 108-19), which provides that:

    (1) A civil penalty not to exceed $10,000 per violation may be 

imposed on any person who violates, or attempts to violate, any order or 

regulation issued under the Act;

    (2) Whoever willfully violates, or willfully attempts to violate, 

any order or regulation issued under this Act shall, upon conviction, be 

fined not more than $50,000, or, if a natural person, may be imprisoned 

for not more than 10 years, or both; and any officer, director, or agent 

of any corporation who willfully participates in such violation may be 

punished by a like fine, imprisonment, or both; and

    (3) Those customs laws of the United States, both civil and 

criminal, including those laws relating to seizure and forfeiture, that 

apply to articles imported in violation of such laws shall



[[Page 448]]



apply with respect to any rough diamond imported in violation of the 

Act.

    Note to paragraph (a). As reflected in paragraphs (a)(1) and (2) of 

this section, section 8(a) of the Clean Diamond Trade Act (Pub. L. 108-

19) establishes penalties with respect to any violation of any 

regulation issued under the Act. OFAC prepenalty, penalty, and 

administrative collection procedures relating to such violations are set 

forth below in Sec. Sec. 592.602 through 592.605. Section 8(c) of the 

Act also authorizes the U.S. Bureau of Customs and Border Protection and 

the U.S. Bureau of Immigration and Customs Enforcement, as appropriate, 

to enforce the penalty provisions set forth in paragraph (a) of this 

section and to enforce the laws and regulations governing exports of 

rough diamonds, including with respect to the validation of the 

Kimberley Process Certificate by the U.S. Bureau of the Census. The 

Office of Foreign Assets Control civil penalty procedures set forth 

below are separate from, and independent of, any penalty procedures that 

may be followed by the U.S. Bureau of Customs and Border Protection and 

the U.S. Bureau of Immigration and Customs Enforcement in their exercise 

of the authorities set forth in section 8(c) of the Clean Diamond Trade 

Act.



    (b) The criminal penalties provided in the Act are subject to 

increase pursuant to 18 U.S.C. 3571.

    (c) Attention is also directed to 18 U.S.C. 1001, which provides 

that whoever, in any matter within the jurisdiction of the executive, 

legislative, or judicial branch of the Government of the United States, 

knowingly and willfully falsifies, conceals, or covers up by any trick, 

scheme, or device, a material fact, or makes any materially false, 

fictitious, or fraudulent statement or representation or makes or uses 

any false writing or document knowing the same to contain any materially 

false, fictitious, or fraudulent statement or entry shall be fined under 

title 18, United States Code, or imprisoned not more than five years, or 

both.

    (d) Violations of this part may also be subject to relevant 

provisions of other applicable laws.