Rule2024-30344
Updating Authorizations for Payments for Legal Services
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 19, 2024
Effective
December 19, 2024
Issuing agencies
Treasury DepartmentForeign Assets Control Office
Abstract
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is adopting a final rule amending multiple CFR parts to update general licenses authorizing payments for legal services from funds originating outside the United States. Specifically, OFAC is replacing the reporting requirement in the general license with a recordkeeping requirement in applicable parts of 31 CFR chapter V. Additionally, in two CFR parts, OFAC is updating the general licenses authorizing the provision of certain legal services and adding a general license authorizing payment for legal services from funds originating outside the United States.
Full Text
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<title>Federal Register, Volume 89 Issue 244 (Thursday, December 19, 2024)</title>
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[Federal Register Volume 89, Number 244 (Thursday, December 19, 2024)]
[Rules and Regulations]
[Pages 103641-103651]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-30344]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 510, 515, 526, 536, 544, 547, 548, 549, 550, 551, 552,
553, 555, 558, 569, 570, 576, 578, 579, 582, 583, 584, 585, 587,
588, 589, 590, 591, 594, 597, 598, and 599
Updating Authorizations for Payments for Legal Services
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is adopting a final rule amending multiple CFR parts to
update general licenses authorizing payments for legal services from
funds originating outside the United States. Specifically, OFAC is
replacing the reporting requirement in the general license with a
recordkeeping requirement in applicable parts of 31 CFR chapter V.
Additionally, in two CFR parts, OFAC is updating the general licenses
authorizing the provision of certain legal services and adding a
general license authorizing payment for legal services from funds
originating outside the United States.
DATES:
Effective date: This rule is effective December 19, 2024.
Applicability date: This rule is applicable on March 12, 2025.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Compliance, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: <a href="https://ofac.treasury.gov">https://ofac.treasury.gov</a>.
Background
Updating Existing General Licenses Authoring Payments for Legal
Services From Funds Originating Outside the United States
In this rule, OFAC is updating 31 CFR 510, 515, 526, 536, 544, 547,
548, 549, 550, 551, 552, 553, 555, 558, 569, 570, 576, 578, 579, 582,
583, 584, 585, 587, 588, 589, 590, 591, 594, 597, 598, and 599 to
update or add general licenses authorizing payments for legal services
from funds originating outside the United States. Specifically, OFAC is
replacing the requirement in the general license to submit annual
reports for payments received with a requirement to retain for ten
years records with details of payments received.
In 31 CFR 591, in addition to replacing the reporting requirement
with a recordkeeping requirement as described above, OFAC is revising
the general license by simplifying the language that authorizes
payments.
In 31 CFR 594 and 597, in addition to replacing the reporting
requirement with a recordkeeping requirement as described above, OFAC
is updating Sec. 594.517 and Sec. 597.513 to conform with current
standards for OFAC general licenses including by removing the
requirement for a letter of engagement prior to receiving payment from
funds originating outside the United States.
In 31 CFR 549, OFAC is updating the general license at Sec.
549.507 authorizing the provision of certain legal services to conform
with current standards for OFAC general licenses including by removing
the requirement that payment for legal services be specifically
licensed. Additionally, OFAC is renumbering the general licenses at
Sec. 549.508 through 549.512 as Sec. 549.509 through 549.513,
respectively, and adding new Sec. 549.508, which authorizes payment
for legal services from funds originating outside the United States.
In 31 CFR 576, OFAC is updating the general license at Sec.
576.507 authorizing the provision of certain legal services to conform
with current standards for OFAC general licenses including by removing
the requirement that payment for legal services be specifically
licensed. Additionally, OFAC is adding new Sec. 576.508, which
authorizes payment for legal services from funds originating outside
the United States.
Public Participation
Because the Regulations involve a foreign affairs function, the
provisions of E.O. 12866 of September 30, 1993, ``Regulatory Planning
and Review'' (58 FR 51735, October 4, 1993), as amended, and the
Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date are inapplicable. Because no notice of proposed
rulemaking is required for this rule, the Regulatory Flexibility Act (5
U.S.C. 601-612) does not apply.
Paperwork Reduction Act
The collections of information related to the Regulations are
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44
U.S.C. 3507), those collections of information have been approved by
the Office of Management and Budget under control number 1505-0164. An
agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number.
List of Subjects in 31 CFR Parts 510, 515, 526, 536, 544, 547, 548,
549, 550, 551, 552, 553, 555, 558, 569, 570, 576, 578, 579, 582,
583, 584, 585, 587, 588, 589, 590, 591, 594, 597, 598, and 599
Administrative practice and procedure, Banks, banking, Blocking of
assets, Credit, Foreign trade, Legal services, Penalties, Reporting and
recordkeeping requirements, Sanctions, Securities, Services.
For the reasons set forth in the preamble, OFAC amends 31 CFR
chapter V to read as follows:
PART 510--NORTH KOREA SANCTIONS REGULATIONS
0
1. The authority citation for part 510 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; 22 U.S.C. 287c, 9201-9255; Pub. L. 101-410, 104
Stat. 890, as amended (28 U.S.C. 2461 note); Pub. L. 115-44, 131
Stat. 886 (codified in scattered sections of 22 U.S.C.); E.O. 13466,
73 FR 36787, 3 CFR, 2008 Comp., p. 195; E.O. 13551, 75 FR 53837, 3
CFR, 2010 Comp., p. 242; E.O. 13570, 76 FR 22291, 3 CFR, 2011 Comp.,
p. 233; E.O. 13687, 80 FR 819, 3 CFR,
[[Page 103642]]
2015 Comp., p. 259; E.O. 13722, 81 FR 14943, 3 CFR, 2016 Comp., p.
446; E.O. 13810, 82 FR 44705, 3 CFR, 2017 Comp., p. 379.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. In Sec. 510.508, revise and republish paragraph (b) to read as
follows:
Sec. 510.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 515--CUBAN ASSETS CONTROL REGULATIONS
0
3. The authority citation for part 515 continues to read as follows:
Authority: 22 U.S.C. 2370(a), 6001-6010, 7201-7211; 31 U.S.C.
321(b); 50 U.S.C. 4301-4341; Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); 22 U.S.C. 6021-6091; Pub. L. 105-277, 112 Stat.
2681; Pub. L. 111-8, 123 Stat. 524; Pub. L. 111-117, 123 Stat. 3034;
E.O. 9989, 13 FR 4891, 3 CFR, 1943-1948 Comp., p. 748; Proc. 3447,
27 FR 1085, 3 CFR, 1959-1963 Comp., p. 157; E.O. 12854, 58 FR 36587,
3 CFR, 1993 Comp., p. 614.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
4. In Sec. 515.512, revise and republish paragraph (e)(2) to read as
follows:
Sec. 515.512 Provision of certain legal services authorized.
* * * * *
(e) * * *
(2) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, persons subject to U.S. jurisdiction who receive payments in
connection with legal services authorized pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(i) The individual or entity from whom the funds originated and the
amount of funds received; and
(ii) If applicable:
(A) The names of any persons subject to U.S. jurisdiction receiving
payment in connection with authorized legal services to or on behalf of
Cuba or a Cuban national, such as private investigators or expert
witnesses;
(B) A general description of the services provided; and
(C) The amount of funds paid in connection with such services.
PART 526--HOSTAGES AND WRONGFUL DETENTION SANCTIONS REGULATIONS
0
5. The authority citation for part 526 is revised to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 1741 et seq.; 31 U.S.C.
321(b); 50 U.S.C. 1601 et seq., 1701 et seq.; Pub. L. 101-410, 104
Stat. 890, as amended (28 U.S.C. 2461 note); E.O. 14078, 87 FR
43389, 3 CFR, 2022 Comp., p. 407.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
6. In Sec. 526.508, revise and republish paragraph (b) to read as
follows:
Sec. 526.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 536--NARCOTICS TRAFFICKING SANCTIONS REGULATIONS
0
7. The authority citation for part 536 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 12978, 60 FR 54579, 3 CFR, 1995 Comp., p.
415; E.O. 13286, 68 FR 10619, 3 CFR, 2003 Comp., p. 166.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
8. In Sec. 536.507, revise and republish paragraph (b) to read as
follows:
Sec. 536.507 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 544--WEAPONS OF MASS DESTRUCTION PROLIFERATORS SANCTIONS
REGULATIONS
0
9. The authority citation for part 544 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
950; E.O. 13094, 63 FR 40803, 3 CFR, 1998 Comp., p. 200; E.O. 13382,
70 FR 38567, 3 CFR, 2005 Comp., p. 170.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
10. In Sec. 544.508, revise and republish paragraph (b) to read as
follows:
Sec. 544.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
[[Page 103643]]
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 547--DEMOCRATIC REPUBLIC OF THE CONGO SANCTIONS REGULATIONS
0
11. The authority citation for part 547 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890,
as amended (28 U.S.C. 2461 note); E.O. 13413, 71 FR 64105, 3 CFR,
2006 Comp., p. 247; E.O. 13671, 79 FR 39949, 3 CFR, 2015 Comp., p.
280.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
12. In Sec. 547.508, revise and republish paragraph (b) to read as
follows:
Sec. 547.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 548--BELARUS SANCTIONS REGULATIONS
0
13. The authority citation for part 548 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 13405, 71 FR 35485, 3 CFR, 2006 Comp., p.
231; E.O. 14038, 86 FR 43905, 3 CFR, 2021 Comp., p. 626.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
14. In Sec. 548.508, revise and republish paragraph (b) to read as
follows:
Sec. 548.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 549--LEBANON SANCTIONS REGULATIONS
0
15. The authority citation for part 549 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 13441, 72 FR 43499, 3 CFR, 2008 Comp., p.
232.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
16. Revise Sec. 549.507 to read as follows:
Sec. 549.507 Provision of certain legal services.
(a) The provision of the following legal services to or on behalf
of persons whose property and interests in property are blocked
pursuant to Sec. 549.201 is authorized, provided that any receipt of
payment of professional fees and reimbursement of incurred expenses
must be authorized pursuant to Sec. 549.508, which authorizes certain
payments for legal services from funds originating outside the United
States; via specific license; or otherwise pursuant to this part:
(1) Provision of legal advice and counseling on the requirements of
and compliance with the laws of the United States or any jurisdiction
within the United States, provided that such advice and counseling are
not provided to facilitate transactions in violation of this part;
(2) Representation of persons named as defendants in or otherwise
made parties to legal, arbitration, or administrative proceedings
before any U.S. federal, state, or local court or agency;
(3) Initiation and conduct of legal, arbitration, or administrative
proceedings before any U.S. federal, state, or local court or agency;
(4) Representation of persons before any U.S. federal, state, or
local court or agency with respect to the imposition, administration,
or enforcement of U.S. sanctions against such persons; and
(5) Provision of legal services in any other context in which
prevailing U.S. law requires access to legal counsel at public expense.
(b) The provision of any other legal services to or on behalf of
persons whose property and interests in property are blocked pursuant
to Sec. 549.201, not otherwise authorized in this part, requires the
issuance of a specific license.
(c) U.S. persons do not need to obtain specific authorization to
provide related services, such as making filings and providing other
administrative services, that are ordinarily incident to the provision
of services authorized by paragraph (a) of this section. Additionally,
U.S. persons who provide services authorized by paragraph (a) of this
section do not need to obtain specific authorization to contract for
related services that are ordinarily incident to the provision of those
legal services, such as those provided by private investigators or
expert witnesses, or to pay for such services. See Sec. 549.404.
(d) Entry into a settlement agreement or the enforcement of any
lien, judgment, arbitral award, decree, or other order through
execution, garnishment, or other judicial process purporting to
transfer or otherwise alter or affect property or interests in property
blocked pursuant to Sec. 549.201 is prohibited unless licensed
pursuant to this part.
Note 1 to Sec. 549.507. Pursuant to part 501, subpart E, of
this chapter, U.S. persons seeking administrative reconsideration or
judicial review of their designation or the blocking of their
property and interests in property may apply for a specific license
from OFAC to authorize the release of certain blocked funds for the
payment of professional fees and reimbursement of incurred expenses
for the provision of such
[[Page 103644]]
legal services where alternative funding sources are not available.
Sec. Sec. 549.508 through 549.512 [Redesignated]
0
17. Redesignate Sec. Sec. 549.508 through 549.512 as Sec. Sec.
549.509 through 549.513.
0
18. Add new Sec. 549.508 to read as follows:
Sec. 549.508 Payments for legal services from funds originating
outside the United States.
(a) Professional fees and incurred expenses. (1) Receipt of payment
of professional fees and reimbursement of incurred expenses for the
provision of legal services authorized pursuant to Sec. 549.507(a) to
or on behalf of any person whose property and interests in property are
blocked pursuant to Sec. 549.201 is authorized from funds originating
outside the United States, provided that the funds do not originate
from:
(i) A source within the United States;
(ii) Any source, wherever located, within the possession or control
of a U.S. person; or
(iii) Any individual or entity, other than the person on whose
behalf the legal services authorized pursuant to Sec. 549.507(a) are
to be provided, whose property and interests in property are blocked
pursuant to any part of this chapter or any Executive order or statute.
(2) Nothing in this paragraph (a) authorizes payments for legal
services using funds in which any other person whose property and
interests in property are blocked pursuant to Sec. 549.201, any other
part of this chapter, or any Executive order or statute has an
interest.
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 550--ETHIOPIA SANCTIONS REGULATIONS
0
19. The authority citation for part 550 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 14046, 86 FR 52389, 3 CFR, 2022 Comp., p.
549.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
20. In Sec. 550.507, revise and republish paragraph (b) to read as
follows:
Sec. 550.507 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 551--SOMALIA SANCTIONS REGULATIONS
0
21. The authority citation for part 551 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890,
as amended (28 U.S.C. 2461 note); E.O. 13536, 75 FR 19869, 3 CFR,
2010 Comp., p. 203; E.O. 13620, 77 FR 43483, 3 CFR, 2012 Comp., p.
281.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
22. In Sec. 551.508, revise and republish paragraph (b) to read as
follows:
Sec. 551.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 552--YEMEN SANCTIONS REGULATIONS
0
23. The authority citation for part 552 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 13611, 77 FR 29533, 3 CFR, 2012 Comp., p.
260.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
24. In Sec. 552.508, revise and republish paragraph (b) to read as
follows:
Sec. 552.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 553--CENTRAL AFRICAN REPUBLIC SANCTIONS REGULATIONS
0
25. The authority citation for part 553 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; 22 U.S.C.
[[Page 103645]]
287c; Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461
note); E.O. 13667, 79 FR 28387, 3 CFR, 2014 Comp., p. 243.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
26. In Sec. 553.508, revise and republish paragraph (b) to read as
follows:
Sec. 553.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 555--MALI SANCTIONS REGULATIONS
0
27. The authority citation for part 555 is revised to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50
U.S.C. 1601 et seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890,
as amended (28 U.S.C. 2461 note); E.O. 13882, 84 FR 37055, 3 CFR,
2019 Comp., p. 346.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
28. In Sec. 555.508, revise and republish paragraph (b) to read as
follows:
Sec. 555.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 558--SOUTH SUDAN SANCTIONS REGULATIONS
0
29. The authority citation for part 558 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 13664, 79 FR 19283, 3 CFR, 2014 Comp., p.
238.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
30. In Sec. 558.508 revise and republish paragraph (b) to read as
follows:
Sec. 558.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 569--SYRIA-RELATED SANCTIONS REGULATIONS
0
31. The authority citation for part 569 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 13894, 84 FR 55851, 3 CFR, 2019 Comp., p.
382.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
32. In Sec. 569.507, revise and republish paragraph (b) to read as
follows:
Sec. 569.507 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 570--LIBYAN SANCTIONS REGULATIONS
0
33. The authority citation for part 570 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890,
as amended (28 U.S.C. 2461 note); E.O. 13566, 76 FR 11315, 3 CFR,
2011 Comp., p. 222; E.O. 13726, 81 FR 23559, 3 CFR, 2016 Comp., p.
454.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
34. In Sec. 570.508, revise and republish paragraph (b) to read as
follows:
Sec. 570.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
[[Page 103646]]
(iii) The amount of funds paid in connection with such services.
PART 576--IRAQ STABILIZATION AND INSURGENCY SANCTIONS REGULATIONS
0
35. The authority citation for part 576 is revised to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50
U.S.C. 1601 et seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890,
as amended (28 U.S.C. 2461 note); E.O. 13303, 68 FR 31931, 3 CFR,
2003 Comp., p. 227; E.O. 13315, 68 FR 52315, 3 CFR, 2003 Comp., p.
252; E.O. 13350, 69 FR 46055, 3 CFR, 2004 Comp., p. 196; E.O. 13364,
69 FR 70177, 3 CFR, 2004 Comp., p. 236; E.O. 13438, 72 FR 39719, 3
CFR, 2007 Comp., p. 224; E.O. 13668, 79 FR 31019, 3 CFR, 2014 Comp.,
p. 248.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
39. Revise and republish Sec. 576.507 to read as follows:
Sec. 576.507 Provision of certain legal services.
(a) The provision of the following legal services to or on behalf
of persons whose property and interests in property are blocked
pursuant to Sec. 576.201 is authorized, provided that any receipt of
payment of professional fees and reimbursement of incurred expenses
must be authorized pursuant to Sec. 576.508, which authorizes certain
payments for legal services from funds originating outside the United
States; via specific license; or otherwise pursuant to this part:
(1) Provision of legal advice and counseling on the requirements of
and compliance with the laws of the United States or any jurisdiction
within the United States, provided that such advice and counseling are
not provided to facilitate transactions in violation of this part;
(2) Representation of persons named as defendants in or otherwise
made parties to legal, arbitration, or administrative proceedings
before any U.S. federal, state, or local court or agency;
(3) Initiation and conduct of legal, arbitration, or administrative
proceedings before any U.S. federal, state, or local court or agency;
(4) Representation of persons before any U.S. federal, state, or
local court or agency with respect to the imposition, administration,
or enforcement of U.S. sanctions against such persons; and
(5) Provision of legal services in any other context in which
prevailing U.S. law requires access to legal counsel at public expense.
(b) The provision of any other legal services to or on behalf of
persons whose property and interests in property are blocked pursuant
to Sec. 576.201, not otherwise authorized in this part, requires the
issuance of a specific license.
(c) U.S. persons do not need to obtain specific authorization to
provide related services, such as making filings and providing other
administrative services, that are ordinarily incident to the provision
of services authorized by paragraph (a) of this section. Additionally,
U.S. persons who provide services authorized by paragraph (a) of this
section do not need to obtain specific authorization to contract for
related services that are ordinarily incident to the provision of those
legal services, such as those provided by private investigators or
expert witnesses, or to pay for such services. See Sec. 576.405.
(d) Entry into a settlement agreement or the enforcement of any
lien, judgment, arbitral award, decree, or other order through
execution, garnishment, or other judicial process purporting to
transfer or otherwise alter or affect property or interests in property
blocked pursuant to Sec. 576.201 is prohibited unless licensed
pursuant to this part.
Note 1 to Sec. 576.507. Pursuant to part 501, subpart E, of
this chapter, U.S. persons seeking administrative reconsideration or
judicial review of their designation or the blocking of their
property and interests in property may apply for a specific license
from OFAC to authorize the release of certain blocked funds for the
payment of professional fees and reimbursement of incurred expenses
for the provision of such legal services where alternative funding
sources are not available.
0
36. Add Sec. 576.508 to read as follows:
Sec. 576.508 Payments for legal services from funds originating
outside the United States.
(a) Professional fees and incurred expenses. (1) Receipt of payment
of professional fees and reimbursement of incurred expenses for the
provision of legal services authorized pursuant to Sec. 576.507(a) to
or on behalf of any person whose property and interests in property are
blocked pursuant to Sec. 576.201, is authorized from funds originating
outside the United States, provided that the funds do not originate
from:
(i) A source within the United States;
(ii) Any source, wherever located, within the possession or control
of a U.S. person; or
(iii) Any individual or entity, other than the person on whose
behalf the legal services authorized pursuant to Sec. 576.507(a) are
to be provided, whose property and interests in property are blocked
pursuant to any part of this chapter or any Executive order or statute.
(2) Nothing in this paragraph (a) authorizes payments for legal
services using funds in which any other person whose property and
interests in property are blocked pursuant to Sec. 576.201, any other
part of this chapter, or any Executive order or statute has an
interest.
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 578--CYBER-RELATED SANCTIONS REGULATIONS
0
37. The authority citation for part 578 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); Pub. L. 115-44, 131 Stat. 886 (codified in
scattered sections of 22 U.S.C.); E.O. 13694, 80 FR 18077, 3 CFR
2015 Comp., p. 297; E.O. 13757, 82 FR 1, 3 CFR 2016 Comp., p. 659.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
38. In Sec. 578.508, revise and republish paragraph (b) to read as
follows:
Sec. 578.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
[[Page 103647]]
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 579--FOREIGN INTERFERENCE IN U.S. ELECTIONS SANCTIONS
REGULATIONS
0
39. The authority citation for part 579 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 13848, 83 FR 46843, 3 CFR, 2018 Comp., p.
869.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
40. In Sec. 579.507, revise and republish paragraph (b) to read as
follows:
Sec. 579.507 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 582--NICARAGUA SANCTIONS REGULATIONS
0
41. The authority citation for part 582 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); Pub. L. 115-335, 132 Stat. 5019 (50 U.S.C. 1701
note); E.O. 13851, 83 FR 61505, 3 CFR, 2018 Comp., p. 884.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
42. In Sec. 582.507, revise and republish paragraph (b) to read as
follows:
Sec. 582.507 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 583--GLOBAL MAGNITSKY SANCTIONS REGULATIONS
0
43. The authority citation for part 583 is revised to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 10101-10103; 31 U.S.C.
321(b); 50 U.S.C. 1601 et seq., 1701 et seq.; Pub. L. 101-410, 104
Stat. 890, as amended (28 U.S.C. 2461 note); Pub. L. 116-145, 134
Stat. 651, as amended (22 U.S.C. 6901 note); Pub. L. 117-78, 135
Stat. 1531 (22 U.S.C. 6901 note); E.O. 13818, 82 FR 60839, 3 CFR,
2017 Comp. p. 399.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
Sec. 583.508 [AMENDED]
0
44. In Sec. 583.508, revise and republish paragraph (b) to read as
follows:
Sec. 583.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 584--MAGNITSKY ACT SANCTIONS REGULATIONS
0
45. The authority citation for part 584 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); Pub. L. 112-208, Title IV, 126 Stat. 1502 (22
U.S.C. 5811 note).
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
46. In Sec. 584.508, revise and republish paragraph (b) to read as
follows:
Sec. 584.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 585--HONG KONG-RELATED SANCTIONS REGULATIONS
0
47. The authority citation for part 585 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461
note); E.O. 13936, 85 FR 43413, 3 CFR, 2020 Comp., p. 399.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
48. In Sec. 585.507, revise and republish paragraph (b) to read as
follows:
[[Page 103648]]
Sec. 585.507 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 587--RUSSIAN HARMFUL FOREIGN ACTIVITIES SANCTIONS REGULATIONS
0
49. The authority citation for part 587 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 14024, 86 FR 20249, 3 CFR, 2021 Comp., p.
542.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
50. In Sec. 587.507, revise and republish paragraph (b) to read as
follows:
Sec. 587.507 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 588--WESTERN BALKANS STABILIZATION REGULATIONS
0
51. The authority citation for part 588 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890,
as amended (28 U.S.C. 2461 note); E.O. 13219, 66 FR 34777, 3 CFR,
2001 Comp., p. 778; E.O. 13304, 68 FR 32315, 3 CFR, 2004 Comp., p.
229; E.O. 14033, 86 FR 43905, 3 CFR, 2022 Comp., p. 591.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
52. In Sec. 588.508, revise and republish paragraph (b) to read as
follows:
Sec. 588.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 589--UKRAINE-/RUSSIA-RELATED SANCTIONS REGULATIONS
0
53. The authority citation for part 589 is revised to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 8901-8910, 8921-8930; 31
U.S.C. 321(b); 50 U.S.C. 1601 et seq., 1701 et seq.; Pub. L. 101-
410, 104 Stat. 890, as amended (28 U.S.C. 2461 note); Pub. L. 115-
44, 131 Stat. 886 (codified in scattered sections of 22 U.S.C.);
E.O. 13660, 79 FR 13493, 3 CFR, 2014 Comp., p. 226; E.O. 13661, 79
FR 15535, 3 CFR, 2014 Comp., p. 229; E.O. 13662, 79 FR 16169, 3 CFR,
2014 Comp., p. 233; E.O. 13685, 79 FR 77357, 3 CFR, 2014 Comp., p.
313.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
54. In Sec. 589.507, revise and republish paragraph (b) to read as
follows:
Sec. 589.507 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 590--TRANSNATIONAL CRIMINAL ORGANIZATIONS SANCTIONS
REGULATIONS
0
55. The authority citation for part 590 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); E.O. 13581, 76 FR 44757, 3 CFR, 2011 Comp., p.
260; E.O. 13863, 84 FR 10255, 3 CFR, 2019 Comp., p. 267.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
56. In Sec. 590.508, revise and republish paragraph (b) to read as
follows:
Sec. 590.508 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
[[Page 103649]]
(iii) The amount of funds paid in connection with such services.
PART 591--VENEZUELA SANCTIONS REGULATIONS
0
57. The authority citation for part 591 is revised to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 et
seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890, as amended (28
U.S.C. 2461 note); Pub. L. 113-278, 128 Stat. 3011 (50 U.S.C. 1701
note); E.O. 13692, 80 FR 12747, 3 CFR, 2015 Comp., p. 276; E.O.
13808, 82 FR 41155, 3 CFR, 2017 Comp., p. 377; E.O. 13827, 83 FR
12469, 3 CFR, 2018 Comp., p. 794; E.O. 13835, 83 FR 24001, 3 CFR,
2018 Comp., p. 817; E.O. 13850, 83 FR 55243, 3 CFR, 2018 Comp., p.
881; E.O. 13857, 84 FR 509, 3 CFR, 2019 Comp., p 251; E.O. 13884, 84
FR 38843, 3 CFR, 2019 Comp., p. 351.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
58. Revise and republish Sec. 591.507 to read as follows:
Sec. 591.507 Payments for legal services from funds originating
outside the United States.
(a) Professional fees and incurred expenses. (1) Receipt of payment
of professional fees and reimbursement of incurred expenses for the
provision of legal services authorized pursuant to Sec. 591.506(a) to
or on behalf of any person whose property and interests in property are
blocked pursuant to Sec. 591.201, is authorized from funds originating
outside the United States, provided that the funds do not originate
from:
(i) A source within the United States;
(ii) Any source, wherever located, within the possession or control
of a U.S. person; or
(iii) Any individual or entity, other than the person on whose
behalf the legal services authorized pursuant to Sec. 591.507(a) are
to be provided, whose property and interests in property are blocked
pursuant to any part of this chapter or any Executive order or statute.
(2) Nothing in this paragraph (a) authorizes payments for legal
services using funds in which any other person whose property and
interests in property are blocked pursuant to Sec. 591.201, any other
part of this chapter, or any Executive order or statute has interest.
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS
0
59. The authority citation for part 594 is revised to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50
U.S.C. 1601 et seq., 1701 et seq.; Pub. L. 101-410, 104 Stat. 890,
as amended (28 U.S.C. 2461 note); Pub. L. 114-102, 129 Stat. 2205,
as amended (50 U.S.C. 1701 note); Pub. L. 115-44, 131 Stat 886
(codified in scattered sections of 22 U.S.C.); Pub. L. 115-348, 132
Stat. 5055 (50 U.S.C. 1701 note); E.O. 13224, 66 FR 49079, 3 CFR,
2001 Comp., p. 786; E.O. 13268, 67 FR 44751, 3 CFR 2002 Comp., p.
240; E.O. 13284, 68 FR 4075, 3 CFR, 2003 Comp., p. 161; E.O. 13372,
70 FR 8499, 3 CFR, 2006 Comp., p. 159; E.O. 13886, 84 FR 48041, 3
CFR, 2019 Comp., p. 356.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
60. Revise and republish Sec. 594.517 to read as follows:
Sec. 594.517 Payments for legal services from funds originating
outside the United States and the formation of legal defense funds.
(a) Payments from funds originating outside the United States. (1)
Effective December 7, 2010, receipt of payment of professional fees and
reimbursement of incurred expenses for the provision of legal services
authorized pursuant to Sec. 594.506(a) to or on behalf of any person
whose property and interests in property are blocked pursuant to Sec.
594.201 are authorized from funds originating outside the United
States, provided that the funds do not originate from:
(i) A source within the United States;
(ii) Any source, wherever located, within the possession or control
of a U.S. person; or
(iii) Any individual or entity, other than the person on whose
behalf the legal services authorized pursuant to Sec. 594.506(a) are
to be provided, whose property and interests in property are blocked
pursuant to any part of this chapter or any Executive order or statute.
(2) Nothing in this paragraph (a) authorizes payments for legal
services using funds in which any other person whose property and
interests in property are blocked pursuant to Sec. 594.201, any other
part of this chapter, or any Executive order or statute has an interest
or the receipt or payment of professional fees or reimbursement of
incurred expenses for the provision of legal services authorized
pursuant to Sec. 594.506(b).
(b) Legal defense funds. Effective December 7, 2010, U.S. persons
that are attorneys, law firms, or legal services organizations are
authorized to form legal defense funds from which payments of
professional fees and reimbursement for expenses incurred in connection
with the provision of legal services authorized pursuant to Sec.
594.506(a) may be debited provided that:
(1) The legal defense fund must be held in a savings or checking
account at a financial institution located in the United States;
(2) Prior to debiting the legal defense fund, the U.S. person
responsible for establishing the legal defense fund must submit the
following information to OFAC: a copy of a letter of engagement or a
letter of intent to engage, specifying the services to be performed and
signed by the individual to whom such services are to be provided, or,
where services are to be provided to an entity, by a legal
representative of the entity; the name of the individual or entity
responsible for establishing the legal defense fund; the name of the
financial institution at which the account for the legal defense fund
will be held; a point of contact at the financial institution holding
the account for the legal defense fund; and the account name and
account number for the legal defense fund. The foregoing information
must be accompanied by correspondence referencing this paragraph (b)
and is to be submitted to OFAC at <a href="/cdn-cgi/l/email-protection#8fc0c9ceccddeaffe0fdfbcffbfdeaeefcfafdf6a1e8e0f9"><span class="__cf_email__" data-cfemail="f0bfb6b1b3a295809f8284b08482959183858289de979f86">[email protected]</span></a> with this
section number in the subject line.
(3) The legal defense fund may not receive funds from a person
whose property and interests in property are blocked pursuant to Sec.
594.201 or any other part of this chapter or any Executive order or
statute; and
(4) The U.S. person responsible for establishing the legal defense
fund must notify the financial institution at which the account for the
legal defense fund is held that the account may only be debited to make
payments of professional fees and reimburse expenses incurred in
connection with the provision of legal services authorized pursuant to
Sec. 594.506(a).
[[Page 103650]]
(5) Nothing in this paragraph (b) authorizes the formation or
debiting of legal defense funds in connection with the provision of
legal services authorized pursuant to Sec. 594.506(b).
Note 1 to paragraph (b). Any funds remaining in a legal defense
fund account after all payments of professional fees and
reimbursement of incurred expenses authorized pursuant to this
paragraph have been made or upon termination of the legal services
for which payment is authorized pursuant to this paragraph are
property in which the person to or on whose behalf the legal
services were rendered has an interest and is subject to the
prohibitions of this part. Persons in the possession or control of
such remaining funds may apply for the unblocking of the funds by
following the procedures set forth at Sec. 501.801 of this chapter.
(c) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) or
(b) of this section must retain for ten years from the date of the
relevant payment, and furnish to OFAC on demand, a record that
specifies the following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 597--FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS
0
61. The authority citation for part 597 continues to read as follows:
Authority: 8 U.S.C. 1189; 18 U.S.C. 2339B; 31 U.S.C. 321(b);
Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note).
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
62. Revise and republish Sec. 597.513 to read as follows:
Sec. 597.513 Payments for legal services from funds originating
outside the United States and the formation of legal defense funds.
(a) Payments from funds originating outside the United States. (1)
Effective December 7, 2010, receipt of payment of professional fees and
reimbursement of incurred expenses for the provision of legal services
authorized pursuant to Sec. 597.505 to or on behalf of any person
whose property and interests in property are blocked pursuant to Sec.
597.201 are authorized from funds originating outside the United
States, provided that the funds do not originate from:
(i) A source within the United States;
(ii) Any source, wherever located, within the possession or control
of a U.S. person; or
(iii) Any individual or entity, other than the person on whose
behalf the legal services authorized pursuant to Sec. 597.505 are to
be provided, whose property and interests in property are blocked
pursuant to any part of this chapter or any Executive order or statute.
(2) Nothing in this paragraph (a) authorizes payments for legal
services using funds in which any other person whose property and
interests in property are blocked pursuant to Sec. 597.201, any other
part of this chapter, or any Executive order or statute has an
interest.
(b) Legal defense funds. Effective December 7, 2010, U.S. persons
that are attorneys, law firms, or legal services organizations are
authorized to form legal defense funds from which payments of
professional fees and reimbursement for expenses incurred in connection
with the provision of legal services authorized pursuant to Sec.
597.505 may be debited provided that:
(1) The legal defense fund must be held in a savings or checking
account at a financial institution located in the United States;
(2) Prior to debiting the legal defense fund, the U.S. person
responsible for establishing the legal defense fund must submit the
following information to OFAC: a copy of a letter of engagement or a
letter of intent to engage, specifying the services to be performed and
signed by the individual to whom such services are to be provided, or,
where services are to be provided to an entity, by a legal
representative of the entity; the name of the individual or entity
responsible for establishing the legal defense fund; the name of the
financial institution at which the account for the legal defense fund
will be held; a point of contact at the financial institution holding
the account for the legal defense fund; and the account name and
account number for the legal defense fund. The foregoing information
must be accompanied by correspondence referencing this paragraph (b)
and is to be submitted to OFAC at <a href="/cdn-cgi/l/email-protection#48070e090b1a2d38273a3c083c3a2d293b3d3a31662f273e"><span class="__cf_email__" data-cfemail="632c2522203106130c111723171106021016111a4d040c15">[email protected]</span></a> with this
section number in the subject line.
(3) The legal defense fund may not receive funds from a person
whose property and interests in property are blocked pursuant to Sec.
597.201 or any other part of this chapter or any Executive order or
statute; and
(4) The U.S. person responsible for establishing the legal defense
fund must notify the financial institution at which the account for the
legal defense fund is held that the account may only be debited to make
payments of professional fees and reimburse expenses incurred in
connection with the provision of legal services authorized pursuant to
Sec. 597.505.
Note 1 to paragraph (b). Any funds remaining in a legal defense
fund account after all payments of professional fees and
reimbursement of incurred expenses authorized pursuant to this
paragraph have been made or upon termination of the legal services
for which payment is authorized pursuant to this paragraph are
property in which the person to or on whose behalf the legal
services were rendered has an interest and is subject to the
prohibitions of this part. Persons in the possession or control of
such remaining funds may apply for the unblocking of the funds by
following the procedures set forth at Sec. 501.801 of this chapter.
(c) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) or
(b) of this section must retain for ten years from the date of the
relevant payment, and furnish to OFAC on demand, a record that
specifies the following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 598--FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS
0
63. The authority citation for part 598 continues to read as follows:
Authority: 3 U.S.C. 301; 21 U.S.C. 1901-1908; 31 U.S.C. 321(b);
Pub. L. 101-410, 104 Stat. 890, as amended (28 U.S.C. 2461 note).
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
64. In Sec. 598.508, revise and republish paragraph (b) to read as
follows:
Sec. 598.508 Payments for legal services from funds originating
outside the United States.
* * * * *
[[Page 103651]]
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten five years from the date of the
relevant payment, and furnish to OFAC on demand, a record that
specifies the following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
PART 599--ILLICIT DRUG TRADE SANCTIONS REGULATIONS
0
65. The authority citation for part 599 is revised to read as follows:
Authority: 3 U.S.C. 301; 21 U.S.C. 2301 et seq.; 31 U.S.C.
321(b); 50 U.S.C. 1601 et seq., 1701 et seq.; Pub. L. 101-410, 104
Stat. 890, as amended (28 U.S.C. 2461 note); E.O. 14059, 86 FR
71549, 3 CFR, 2021 Comp., p. 715.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
66. In Sec. 599.507, revise and republish paragraph (b) to read as
follows:
Sec. 599.507 Payments for legal services from funds originating
outside the United States.
* * * * *
(b) Records. Consistent with Sec. Sec. 501.601 and 501.602 of this
chapter, U.S. persons who receive payments pursuant to paragraph (a) of
this section must retain for ten years from the date of the relevant
payment, and furnish to OFAC on demand, a record that specifies the
following for each payment:
(1) The individual or entity from whom the funds originated and the
amount of funds received; and
(2) If applicable:
(i) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(ii) A general description of the services provided; and
(iii) The amount of funds paid in connection with such services.
Lisa M. Palluconi,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2024-30344 Filed 12-17-24; 11:15 am]
BILLING CODE 4810-AL-P
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</html>Indexed from Federal Register on December 19, 2024.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.