[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: 31CFR598.703]



[Page 501-502]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 598_FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS--Table of 

Contents

 

                           Subpart G_Penalties

 

Sec. 598.703  Response to prepenalty notice; informal settlement.



    (a) Deadline for response. The respondent shall have 30 days from 

the date of mailing of the prepenalty notice to make a written response 

to the Director of the Office of Foreign Assets Control.

    (b) Form and contents of response. The written response need not be 

in any particular form, but must contain information sufficient to 

indicate that it is in response to the prepenalty notice. It should 

contain responses to the allegations in the prepenalty notice and 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.

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

written response to a prepenalty notice issued pursuant



[[Page 502]]



to this section, 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. 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be withdrawn, the respondent will not be required to take a written 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 30-day period 

specified in paragraph (a) of this section for written response to the 

prepenalty notice remains in effect unless additional time is granted by 

the Office of Foreign Assets Control.