§ 542.701 - Penalties.

§ 542.701 Penalties.

(a) Attention is directed to section Section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) (“IEEPA”IEEPA) , which is applicable to violations of the provisions of any licenseregulation, ruling, regulationinstruction, order, directive, or instruction license issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this part 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 licenseregulation, ruling, instruction, order, regulationdirective, or prohibition license issued under IEEPA.

(2) The applicable IEEPA provides for a maximum civil penalty per violation of IEEPA is not to exceed the greater of $368,136 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, or willfully conspires to commit, or aids or abets in the commission of a violation of any license, regulation in this part, ruling, instruction, order, regulationdirective, or prohibition license 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) Attention is directed to section 5

(1) The civil penalties provided in IEEPA are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(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.

(d) Section 5(b) of the United Nations Participation Act, as amended (22 U.S.C. 287c(b)) (UNPA),

which

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

the authority granted in that section

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.

(

c) Violations involving transactions described at section 203(b)(1),(3), and (4) of IEEPA shall be subject only to the penalties set forth in paragraph (b) of this section.

(d) Adjustments to penalty amounts.

(1) The civil penalties provided in IEEPA are subject to adjustment pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note).

(2) The criminal penalties provided in IEEPA and the United Nations Participation Act, as amended (22 U.S.C. 287c) (“UNPA”), are subject to adjustment pursuant to 18 U.S.C. 3571.

(e) Attention is directed e) Pursuant to 18 U.S.C. 2332d, which provides that, except as provided in regulations issued by the Secretary of the Treasury, in consultation with the Secretary of State, a U.S. person, who knowing or having reasonable cause to know that a country is designated under section 6(j) of the Export Administration Act of 1979, 50 U.S.C. App. 2405, as a country supporting international terrorism, engages in a financial transaction with the government of that country, shall be fined under title 18, United States Code, or imprisoned for not more than 10 years, or both.

(f) Attention is also directed to 18 U.S.C. 1001, which provides that 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, or imprisoned, or both.

(g)

Violations of this part may also be subject to other applicable laws.

[79 FR 25416, May 2, 2014, as amended at 81 FR 43075, July 1, 2016; 82 FR 10437, Feb. 10, 2017; 83 FR 11879, Mar. 19, 2018; 84 FR 27717, June 14, 2019; 85 FR 19887, Apr. 9, 2020; 86 FR 14357, Mar. 17, 2021; 87 FR 7372, Feb. 9, 2022; 88 FR 2232, Jan. 13, 2023; 89 FR 2142, Jan. 12, 2024]