[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: 31CFR594.703]



[Page 462-464]

 

                  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. 594.703  Response to prepenalty notice; informal settlement.



    (a) Deadline for response. The respondent may submit a response to 

the prepenalty notice within the applicable 30-day period set forth in 

this paragraph. The Director may grant, at his discretion, an extension 

of time in which to submit a response to the prepenalty notice. The 

failure to submit a response within the applicable time period set forth 

in this paragraph shall be deemed to be a waiver of the right to 

respond.

    (1) Computation of time for response. A response to the prepenalty 

notice must



[[Page 463]]



be postmarked or date-stamped by the U.S. Postal Service (or foreign 

postal service, if mailed abroad) or courier service provider (if 

transmitted to OFAC by courier) on or before the 30th day after the 

postmark date on the envelope in which the prepenalty notice was mailed. 

If the respondent refused delivery or otherwise avoided receipt of the 

prepenalty notice, a response must be postmarked or date-stamped on or 

before the 30th day after the date on the stamped postal receipt 

maintained at the Office of Foreign Assets Control. If the prepenalty 

notice was personally delivered to the respondent by a non-U.S. Postal 

Service agent authorized by the Director, a response must be postmarked 

or date-stamped on or before the 30th day after the date of delivery.

    (2) Extensions of time for response. If a due date falls on a 

federal holiday or weekend, that due date is extended to include the 

following business day. Any other extensions of time will be granted, at 

the Director's discretion, only upon the respondent's specific request 

to the Office of Foreign Assets Control.

    (b) Form and method of response. The response must be submitted in 

writing and may be handwritten or typed. The response need not be in any 

particular form. A copy of the written response may be sent by 

facsimile, but the original also must be sent to the Office of Foreign 

Assets Control Civil Penalties Division by mail or courier and must be 

postmarked or date-stamped, in accordance with paragraph (a) of this 

section.

    (c) Contents of response. A written response must contain 

information sufficient to indicate that it is in response to the 

prepenalty notice.

    (1) A written response must include the respondent's full name, 

address, telephone number, and facsimile number, if available, or those 

of the representative of the respondent.

    (2) A written response should either admit or deny each specific 

violation alleged in the prepenalty notice and also state if the 

respondent has no knowledge of a particular violation. If the written 

response fails to address any specific violation alleged in the 

prepenalty notice, that alleged violation shall be deemed to be 

admitted.

    (3) A written response should include any information in defense, 

evidence in support of an asserted defense, or other factors that the 

respondent requests the Office of Foreign Assets Control to consider. 

Any defense or explanation previously made to the Office of Foreign 

Assets Control or any other agency must be repeated in the written 

response. Any defense not raised in the written response will be 

considered waived. The written response also should set forth the 

reasons why the respondent believes the penalty should not be imposed or 

why, if imposed, it should be in a lesser amount than proposed.

    (d) Default. If the respondent elects not to submit a written 

response within the time limit set forth in paragraph (a) of this 

section, the Office of Foreign Assets Control will conclude that the 

respondent has decided not to respond to the prepenalty notice. The 

agency generally will then issue a written penalty notice imposing the 

penalty proposed in the prepenalty notice.

    (e) Informal settlement. In addition to or as an alternative to a 

written response to a prepenalty notice, the respondent or respondent's 

representative may contact the Office of Foreign Assets Control as 

advised in the prepenalty notice to propose the settlement of 

allegations contained in the prepenalty notice and related matters. 

However, the requirements set forth in paragraph (f) of this section as 

to oral communication by the representative must first be fulfilled. In 

the event of settlement at the prepenalty stage, the claim proposed in 

the prepenalty notice will be withdrawn, the respondent will not be 

required to take a written position on allegations contained in the 

prepenalty notice, and the Office of Foreign Assets Control will make no 

final determination as to whether a violation occurred. The amount 

accepted in settlement of allegations in a prepenalty notice may vary 

from the civil penalty that might finally be imposed in the event of a 

formal determination of violation. In the event no settlement is 

reached, the time limit specified in paragraph (a) of this section for 

written response to the prepenalty notice will remain in effect



[[Page 464]]



unless additional time is granted by the Office of Foreign Assets 

Control.

    (f) Representation. A representative of the respondent may act on 

behalf of the respondent, but any oral communication with the Office of 

Foreign Assets Control prior to a written submission regarding the 

specific allegations contained in the prepenalty notice must be preceded 

by a written letter of representation, unless the prepenalty notice was 

served upon the respondent in care of the representative.