(a) The administrative process for enforcing TWEA sanctions programs proceeds as follows:

1. (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. (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. (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. (4) If the respondent requests a hearing, the Director of the Office of Foreign Assets Control will have two options:

   1. (i) The Director may issue an “Order Instituting Proceedings” and refer the matter to an Administrative Law Judge for a hearing and decision; or
   2. (ii) The Director may determine to discontinue the penalty action based on information presented by the respondent.
5. (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. (6) If review is taken by a Secretary's designee, the Secretary's designee reaches the final decision of the Department.
7. (7) A respondent may seek judicial review of the final decision of the Department.