31 CFR § 501.703 - Overview of civil penalty process and construction of rules.
---
identifier: "/us/cfr/t31/s501.703"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "31 CFR § 501.703 - Overview of civil penalty process and construction of rules."
title_number: 31
title_name: "Money and Finance: Treasury"
section_number: "501.703"
section_name: "Overview of civil penalty process and construction of rules."
chapter_name: "OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY"
part_number: "501"
part_name: "REPORTING, PROCEDURES AND PENALTIES REGULATIONS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
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)."
regulatory_source: "62 FR 45101, Aug. 25, 1997, unless otherwise noted."
cfr_part: "501"
---
# 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.