[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: 31CFR594.702]



[Page 462]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 594_GLOBAL TERRORISM SANCTIONS REGULATIONS--Table of Contents

 

                           Subpart G_Penalties

 

Sec. 594.702  Prepenalty notice.



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

Control has reasonable cause 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 Powers Act, and the Director determines 

that further 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. 594.703 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 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.