31 CFR Part 505 — Sanctions Penalties Regulations

PART 505—SANCTIONS PENALTIES REGULATIONS Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et seq., et seq.; Source: 91 FR 60822, Sept. 25, 2026, unless otherwise noted. Subpart A—General Provisions § 505.101 Relation of this part to other laws and regulations. This part sets forth standard sanctions penalty regulations applicable to transactions regulated pursuant to other parts codified in this chapter, as well as to economic sanctions programs for which implementation and administration are delegated to OFAC. Substantive prohibitions, definitions, interpretations, and licenses particular to each economic sanctions program are not contained in this part but are set forth in the particular part of this chapter dedicated to that program and OFAC's website, https://ofac.treasury.gov, § 505.102 Certain civil penalties information released. (a) After the conclusion of a civil penalties proceeding that results in either the imposition of a civil monetary penalty or a settlement agreement, OFAC shall make available to the public certain information on a routine basis, not less frequently than monthly, as follows: (1) In each such proceeding against an entity, OFAC shall make available to the public: (i) The name and location of the entity involved; (ii) The sanctions program(s) involved; (iii) A brief description of the violation or apparent violation; (iv) A clear indication whether the proceeding resulted in a settlement agreement or the imposition of penalties; (v) An indication whether the entity voluntarily disclosed the violation or apparent violation to OFAC; and (vi) The amount of the penalty imposed or the amount of the agreed settlement. (2) In such proceedings against individuals, OFAC shall release on an aggregate basis: (i) The number of penalties imposed and settlement agreements reached; (ii) The sanctions program(s) involved; (iii) A brief description of the violations or apparent violations; (iv) A clear indication whether the proceedings resulted in settlement agreements or in the imposition of penalties; and (v) The amounts of the penalties imposed and the amounts of the agreed settlements. (b) The medium through which information will be made available to the public is OFAC's website at https://ofac.treasury.gov. (c) The information made available pursuant to paragraph (a) of this section shall generally not include the following: (1) The name of any violator or alleged violator who is an individual. (2) Records or information obtained or created in the implementation of part 598 of this chapter. (d) On a case-by-case basis, OFAC may release additional information concerning a particular civil penalties proceeding. § 505.103 Paperwork Reduction Act notice. For approval by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) of information collections relating to recordkeeping and reporting requirements, licensing procedures, and other procedures, see § 501.901 of this chapter. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. Subpart B—General Definitions § 505.201 Definitions. This part includes terms that may differ among various sanctions regulations administered by OFAC. When analyzing a procedure, penalty, or transaction, the appropriate definition is the one contained in the part relating to the associated sanctions regulations. In the case of economic sanctions programs for which implementation and administration are delegated to OFAC but for which regulations have not yet been issued, the definitions of terms in this part are governed by definitions contained in the implementing statute or Executive order. § 505.202 IEEPA. The term IEEPA means the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq. § 505.203 OFAC. The term OFAC means the Department of the Treasury's Office of Foreign Assets Control. Subpart C [Reserved] Subpart D—International Emergency Economic Powers Act Penalties and Findings of Violation § 505.401 Penalties. (a) The penalties available under section 206 of IEEPA (50 U.S.C. 1705) are applicable to violations of the provisions of any regulation, ruling, instruction, order, directive, or license issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to the applicable part of this chapter or otherwise under IEEPA. (1) A civil penalty not to exceed the amount set forth in section 206 of IEEPA may be imposed on any person who violates, attempts to violate, conspires to violate, or causes a violation of any regulation, ruling, instruction, order, directive, license, or prohibition issued under IEEPA. (2) IEEPA provides for a maximum civil penalty not to exceed the greater of $377,700 or an amount that is twice the amount of the transaction that is the basis of the violation with respect to which the penalty is imposed. (3) A person who willfully commits, willfully attempts to commit, willfully conspires to commit, or aids or abets in the commission of a violation of any regulation in the applicable part of this chapter, ruling, instruction, order, directive, license, or prohibition may, upon conviction, be fined not more than $1,000,000, or if a natural person, be imprisoned for not more than 20 years, or both. (b)(1) The civil penalties provided in IEEPA are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (28 U.S.C. 2461 note, Pub. L. 101-410, as amended). (2) The criminal penalties provided in IEEPA are subject to adjustment pursuant to 18 U.S.C. 3571. (c) Pursuant to 18 U.S.C. 1001, whoever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States, knowingly and willfully falsifies, conceals, or covers up by any trick, scheme, or device a material fact; or makes any materially false, fictitious, or fraudulent statement or representation; or makes or uses any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry shall be fined under title 18, United States Code, imprisoned, or both. § 505.402 Pre-Penalty Notice; settlement. (a) When required. (b) Response Right to respond. (2) Deadline for response. (i) Computation of time for response. (ii) Extensions of time for response. (3) Form and method of response. (c) Settlement. (d) Guidelines. (e) Representation. § 505.403 Penalty imposition. If, after considering any written response to the Pre-Penalty Notice and any relevant facts, OFAC determines that there was a violation by the alleged violator named in the Pre-Penalty Notice and that a civil monetary penalty is appropriate, OFAC may issue a Penalty Notice to the violator containing a determination of the violation and the imposition of the monetary penalty. For additional details concerning issuance of a Penalty Notice, see appendix A to part 501 of this chapter. The issuance of the Penalty Notice shall constitute final agency action. The violator has the right to seek judicial review of that final agency action in Federal district court. § 505.404 Administrative collection; referral to United States Department of Justice. In the event that the violator does not pay the penalty imposed pursuant to IEEPA or make payment arrangements acceptable to OFAC, the matter may be referred for administrative collection measures by the Department of the Treasury or to the United States Department of Justice for appropriate action to recover the penalty in a civil suit in a Federal district court. § 505.405 Findings of Violation. (a) When issued. (i) Determines that there has occurred a violation of any provision of the applicable part of this chapter, or a violation of the provisions of any regulation, ruling, instruction, order, directive, or license issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to the applicable part of this chapter or otherwise under IEEPA; (ii) Considers it important to document the occurrence of a violation; and (iii) Based on the guidelines contained in appendix A to part 501 of this chapter, concludes that an administrative response is warranted but that a civil monetary penalty is not the most appropriate response. (2) An initial Finding of Violation shall be in writing and may be issued whether or not another agency has taken any action with respect to the matter. For additional details concerning issuance of a Finding of Violation, see appendix A to part 501 of this chapter. (b) Response Right to respond. (2) Deadline for response; default determination. (i) Computation of time for response. (ii) Extensions of time for response. (3) Form and method of response. (4) Information that should be included in response. (c) Determination Determination that a Finding of Violation is warranted. (2) Determination that a Finding of Violation is not warranted. Note 1 to paragraph ( c A determination by OFAC that a final Finding of Violation is not warranted does not preclude OFAC from pursuing other enforcement actions consistent with the guidelines contained in appendix A to part 501 of this chapter. (d) Representation. Subpart E—United Nations Participation Act Penalties § 505.501 Penalties. (a) Section 5(b) of the United Nations Participation Act, as amended (UNPA) (22 U.S.C. 287c(b)), provides that any person who willfully violates or evades or attempts to violate or evade any order, rule, or regulation issued by the President pursuant to section 5(a) of the UNPA shall, upon conviction, be fined not more than $1,000,000 or, if a natural person, be imprisoned for not more than 20 years, or both. (b) Violations involving transactions described in section 203(b)(1), (3), and (4) of IEEPA shall be subject only to the penalties set forth in paragraph (a) of this section.

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