---
kind: "section"
citation: "31 C.F.R. § 501.703"
title: "31"
number: "501.703"
heading: "Overview of civil penalty process and construction of rules."
url: "https://uscodex.org/cfr/31/501.703"
---

# §501.703. Overview of civil penalty process and construction of rules.

- (a) **The administrative process for enforcing TWEA sanctions programs proceeds as follows—**
  - (1) The Director of the Office of Foreign Assets Control will notify a suspected violator (hereinafter “respondent”) of an alleged violation by issuing a “Prepenalty Notice.” The Prepenalty Notice shall describe the alleged violation(s) and include a proposed civil penalty amount.
  - (2) The respondent will have 60 days from the date the Prepenalty Notice is served to make a written presentation either defending against the alleged violation or admitting the violation. A respondent who admits a violation may offer information 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.
  - (3) Absent a settlement agreement or a finding that no violation occurred, the Director of the Office of Foreign Assets Control will issue a “Penalty Notice.” The respondent will have 30 days from the date of service to either pay the penalty or request a hearing.
  - (4) If the respondent requests a hearing, the Director of the Office of Foreign Assets Control will have two options:
    - (i) The Director may issue an “Order Instituting Proceedings” and refer the matter to an Administrative Law Judge for a hearing and decision; or
    - (ii) The Director may determine to discontinue the penalty action based on information presented by the respondent.
  - (5) Absent review by a Secretary's designee, the decision of the Administrative Law Judge will become the final decision of the Department without further proceedings.
  - (6) If review is taken by a Secretary's designee, the Secretary's designee reaches the final decision of the Department.
  - (7) A respondent may seek judicial review of the final decision of the Department.
- (b) **Construction of rules.** The rules contained in this subpart shall be construed and administered to promote the just, speedy, and inexpensive determination of every action. To the extent there is a conflict between the rules contained in this subpart and a procedural requirement contained in any statute, the requirement in the statute shall control.

## Notes

### Source

Source: 68 FR 53642, Sept. 11, 2003, unless otherwise noted.

### Authority

Authority: 8 U.S.C. 1189; 18 U.S.C. 2332d, 2339B; 19 U.S.C. 3901-3913; 21 U.S.C. 1901-1908; 22 U.S.C. 287c, 2370(a), 6009, 6032, 7205, 8501-8551; 31 U.S.C. 321(b); 50 U.S.C. 1701-1706, 4301-4341; Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note).

### Source

Source: 62 FR 45101, Aug. 25, 1997, unless otherwise noted.