[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: 31CFR592.602]



[Page 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. 592.602  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 

regulation or order issued by or pursuant to the direction or 

authorization of the Secretary of the Treasury pursuant to this part or 

otherwise under the Clean Diamond Trade Act, 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. 592.603 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 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.