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Can you summarize 31 CFR Part 501?
OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY > REPORTING, PROCEDURES AND PENALTIES REGULATIONS
Short Summary
The provided legal document content pertains to reporting, procedures, and penalties regulations related to transactions subject to the provisions of the Code of Federal Regulations, Money and Finance: Treasury, Regulations Relating to Money and Finance, and OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY. It requires every person engaging in any transaction subject to the provisions of this chapter to keep a full and accurate record of each such transaction engaged in, regardless of whether it was conducted under a license or not. Additionally, every person holding property blocked pursuant to the provisions of this chapter or funds transfers retained pursuant to 596.504(b) of this chapter must keep a full and accurate record of such property. The document outlines the reporting requirements for holders of blocked property and releasers of property from blocked status under the Office of Foreign Assets Control (OFAC). It specifies that the primary responsibility for reporting rests with the actual holder or releaser of the property. The document provides details on the information that must be reported, including the name and address of the person holding the property, a description of the transaction associated with the blocking, the associated sanctions target(s), a description of the blocked property, the date the property was blocked, and the legal authority for the blocking. The document also outlines the requirements for annual reports of blocked property and reports on the release of property from blocked status. It specifies the information that must be included in these reports and the deadlines for filing them. The document mentions that reports on retained funds and releases of such funds are subject to the same reporting requirements. It provides instructions on where to submit the reports and states that OFAC prefers to receive reports electronically. Finally, it mentions that OFAC records are subject to the Freedom of Information Act (FOIA) and may be released upon receipt of a valid FOIA request. The document also covers the reporting of rejected transactions by U.S. persons or persons subject to U.S. jurisdiction, including financial institutions. It specifies that if a transaction is rejected because it would violate a provision in this chapter, a report must be submitted to the Office of Foreign Assets Control (OFAC). The document provides details on the information that must be included in these reports and the deadlines for filing them. It mentions options for submitting reports to OFAC, including email or other official electronic reporting methods. The document states that the information provided in the reports is subject to the Freedom of Information Act (FOIA) and may be released upon a valid FOIA request, unless an applicable exemption applies. Additionally, the document governs the participation of U.S. persons (or persons subject to the jurisdiction of the United States) in litigation, arbitration, or other binding alternative dispute resolution proceedings in the United States. It requires U.S. persons to provide notice of such proceedings, submit copies of all relevant documents to the Chief Counsel, Office of Foreign Assets Control, and report the scheduling of any hearing or status conference. The reporting requirements do not apply to proceedings where the Office of Foreign Assets Control is a party. The document specifies that the reporting and recordkeeping requirements set forth in this subpart are applicable to economic sanctions programs for which implementation and administration have been delegated to the Office of Foreign Assets Control. The penalties associated with violations of the Trading With the Enemy Act (TWEA) include fines of up to $1,000,000, imprisonment for up to 20 years, or both for individuals who willfully violate any provision of TWEA or any related license, rule, or regulation. The Secretary of the Treasury has the authority to impose civil penalties of up to $105,083 per violation. No specific exemptions are mentioned in these documents.
Whom does it apply to?
Every person engaging in any transaction subject to the provisions of this chapter, holders of blocked property and releasers of property from blocked status under the Office of Foreign Assets Control (OFAC), U.S. persons or persons subject to U.S. jurisdiction, including financial institutions, and U.S. persons (or persons subject to the jurisdiction of the United States) participating in litigation, arbitration, or other binding alternative dispute resolution proceedings in the United States
What does it govern?
Reporting, procedures, and penalties regulations related to transactions subject to the provisions of the Code of Federal Regulations, Money and Finance: Treasury, Regulations Relating to Money and Finance, and OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
The penalties associated with violations of the Trading With the Enemy Act (TWEA) include fines of up to $1,000,000, imprisonment for up to 20 years, or both for individuals who willfully violate any provision of TWEA or any related license, rule, or regulation. The Secretary of the Treasury has the authority to impose civil penalties of up to $105,083 per violation.
Jurisdiction
U.S. Federal Government