Updating Authorizations for Payments for Legal Services, 103641-103651 [2024-30344]

Download as PDF Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations 103641 2 Commerce may issue a preliminary determination, either concurrently with the initiation or not. 19 CFR 351.227(e)(1). If Commerce issues a Preliminary Determination concurrently with Initiation, 19 CFR 351.227(d)(1)–(3) will not apply, pursuant to 19 CFR 351.227(d)(4). In such cases, Commerce will establish appropriate procedures on a case-specific basis. 19 CFR 351.227(d)(4). 3 X represents the date a questionnaire is received by Commerce. 4 Z represents the date of the Preliminary Determination. 5 If a Preliminary Determination is not issued concurrently with Initiation, Commerce will establish a schedule for the filing of comments and rebuttal comments to the Preliminary Determination. 19 CFR 351.227(d)(3). [FR Doc. 2024–30257 Filed 12–18–24; 8:45 am] Background BILLING CODE 3510–DS–P Updating Existing General Licenses Authoring Payments for Legal Services From Funds Originating Outside the United States 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 Office of Foreign Assets Control, Treasury. AGENCY: ACTION: Final rule. 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. SUMMARY: DATES: Effective date: This rule is effective December 19, 2024. Applicability date: This rule is applicable on March 12, 2025. FOR FURTHER INFORMATION CONTACT: lotter on DSK11XQN23PROD with RULES1 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: https:// ofac.treasury.gov. VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 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 § 594.517 and § 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 § 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 § 549.508 through 549.512 as § 549.509 through 549.513, respectively, and adding new § 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 § 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 § 576.508, which authorizes payment for legal services from funds originating outside the United States. PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 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 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, E:\FR\FM\19DER1.SGM 19DER1 103642 Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations 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 2. In § 510.508, revise and republish paragraph (b) to read as follows: ■ § 510.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 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 4. In § 515.512, revise and republish paragraph (e)(2) to read as follows: ■ § 515.512 Provision of certain legal services authorized. lotter on DSK11XQN23PROD with RULES1 * * * * (e) * * * (2) Records. Consistent with §§ 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 VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 PART 526—HOSTAGES AND WRONGFUL DETENTION SANCTIONS REGULATIONS 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 6. In § 526.508, revise and republish paragraph (b) to read as follows: ■ § 526.508 Payments for legal services from funds originating outside the United States. * ■ * 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. * * * * (b) Records. Consistent with §§ 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 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. PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 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 8. In § 536.507, revise and republish paragraph (b) to read as follows: ■ § 536.507 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 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 10. In § 544.508, revise and republish paragraph (b) to read as follows: ■ § 544.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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: E:\FR\FM\19DER1.SGM 19DER1 Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations (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 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 12. In § 547.508, revise and republish paragraph (b) to read as follows: ■ § 547.508 Payments for legal services from funds originating outside the United States. * * * * (b) Records. Consistent with §§ 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. lotter on DSK11XQN23PROD with RULES1 * PART 548—BELARUS SANCTIONS REGULATIONS 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 VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 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 14. In § 548.508, revise and republish paragraph (b) to read as follows: ■ § 548.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 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 16. Revise § 549.507 to read as follows: ■ § 549.507 services. Provision of certain legal (a) The provision of the following legal services to or on behalf of persons whose property and interests in property are blocked pursuant to § 549.201 is authorized, provided that any receipt of payment of professional fees and reimbursement of incurred expenses must be authorized pursuant to § 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 PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 103643 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 § 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 § 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 § 549.201 is prohibited unless licensed pursuant to this part. Note 1 to § 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 E:\FR\FM\19DER1.SGM 19DER1 103644 Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations legal services where alternative funding sources are not available. PART 550—ETHIOPIA SANCTIONS REGULATIONS §§ 549.508 through 549.512 [Redesignated] ■ 17. Redesignate §§ 549.508 through 549.512 as §§ 549.509 through 549.513. ■ 18. Add new § 549.508 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. § 549.508 Payments for legal services from funds originating outside the United States. Subpart E—Licenses, Authorizations, and Statements of Licensing Policy 19. The authority citation for part 550 is revised to read as follows: lotter on DSK11XQN23PROD with RULES1 ■ (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 § 549.507(a) to or on behalf of any person whose property and interests in property are blocked pursuant to § 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 § 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 § 549.201, any other part of this chapter, or any Executive order or statute has an interest. (b) Records. Consistent with §§ 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. VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 20. In § 550.507, revise and republish paragraph (b) to read as follows: ■ § 550.507 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 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 22. In § 551.508, revise and republish paragraph (b) to read as follows: ■ § 551.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 PO 00000 Frm 00018 Fmt 4700 Sfmt 4700 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 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 24. In § 552.508, revise and republish paragraph (b) to read as follows: ■ § 552.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 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. E:\FR\FM\19DER1.SGM 19DER1 Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations 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 26. In § 553.508, revise and republish paragraph (b) to read as follows: ■ § 553.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 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 28. In § 555.508, revise and republish paragraph (b) to read as follows: ■ § 555.508 Payments for legal services from funds originating outside the United States. lotter on DSK11XQN23PROD with RULES1 * * * * * (b) Records. Consistent with §§ 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 VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 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 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 30. In § 558.508 revise and republish paragraph (b) to read as follows: ■ § 558.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 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 32. In § 569.507, revise and republish paragraph (b) to read as follows: ■ PO 00000 Frm 00019 Fmt 4700 Sfmt 4700 103645 § 569.507 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 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 34. In § 570.508, revise and republish paragraph (b) to read as follows: ■ § 570.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 E:\FR\FM\19DER1.SGM 19DER1 103646 Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations (iii) The amount of funds paid in connection with such services. PART 576—IRAQ STABILIZATION AND INSURGENCY SANCTIONS REGULATIONS 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 39. Revise and republish § 576.507 to read as follows: ■ lotter on DSK11XQN23PROD with RULES1 § 576.507 services. Provision of certain legal (a) The provision of the following legal services to or on behalf of persons whose property and interests in property are blocked pursuant to § 576.201 is authorized, provided that any receipt of payment of professional fees and reimbursement of incurred expenses must be authorized pursuant to § 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. VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 (b) The provision of any other legal services to or on behalf of persons whose property and interests in property are blocked pursuant to § 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 § 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 § 576.201 is prohibited unless licensed pursuant to this part. Note 1 to § 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. ■ 36. Add § 576.508 to read as follows: § 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 § 576.507(a) to or on behalf of any person whose property and interests in property are blocked pursuant to § 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 PO 00000 Frm 00020 Fmt 4700 Sfmt 4700 § 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 § 576.201, any other part of this chapter, or any Executive order or statute has an interest. (b) Records. Consistent with §§ 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 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 38. In § 578.508, revise and republish paragraph (b) to read as follows: ■ § 578.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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: E:\FR\FM\19DER1.SGM 19DER1 Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations (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 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 40. In § 579.507, revise and republish paragraph (b) to read as follows: ■ § 579.507 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 41. The authority citation for part 582 is revised to read as follows: lotter on DSK11XQN23PROD with RULES1 ■ 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. VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 Subpart E—Licenses, Authorizations, and Statements of Licensing Policy 42. In § 582.507, revise and republish paragraph (b) to read as follows: ■ § 582.507 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 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 § 583.508 [AMENDED] 44. In § 583.508, revise and republish paragraph (b) to read as follows: ■ § 583.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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: PO 00000 Frm 00021 Fmt 4700 Sfmt 4700 103647 (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 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 46. In § 584.508, revise and republish paragraph (b) to read as follows: ■ § 584.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 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 48. In § 585.507, revise and republish paragraph (b) to read as follows: ■ E:\FR\FM\19DER1.SGM 19DER1 103648 Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations § 585.507 Payments for legal services from funds originating outside the United States. * * * * (b) Records. Consistent with §§ 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 * PART 587—RUSSIAN HARMFUL FOREIGN ACTIVITIES SANCTIONS REGULATIONS 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 50. In § 587.507, revise and republish paragraph (b) to read as follows: ■ § 587.507 Payments for legal services from funds originating outside the United States. lotter on DSK11XQN23PROD with RULES1 * * * * * (b) Records. Consistent with §§ 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. VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 § 589.507 Payments for legal services from funds originating outside the United States. * 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 52. In § 588.508, revise and republish paragraph (b) to read as follows: ■ § 588.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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-/RUSSIARELATED SANCTIONS REGULATIONS 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 54. In § 589.507, revise and republish paragraph (b) to read as follows: ■ PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 * * * * (b) Records. Consistent with §§ 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 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 56. In § 590.508, revise and republish paragraph (b) to read as follows: ■ § 590.508 Payments for legal services from funds originating outside the United States. * * * * * (b) Records. Consistent with §§ 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 E:\FR\FM\19DER1.SGM 19DER1 Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations (iii) The amount of funds paid in connection with such services. PART 591—VENEZUELA SANCTIONS REGULATIONS 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 58. Revise and republish § 591.507 to read as follows: ■ lotter on DSK11XQN23PROD with RULES1 § 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 § 591.506(a) to or on behalf of any person whose property and interests in property are blocked pursuant to § 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 § 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 § 591.201, any other part of this chapter, or any Executive order or statute has interest. (b) Records. Consistent with §§ 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 VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 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 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 60. Revise and republish § 594.517 to read as follows: ■ § 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 § 594.506(a) to or on behalf of any person whose property and interests in property are blocked pursuant to § 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 § 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. PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 103649 (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 § 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 § 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 § 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 OFACReport@ treasury.gov 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 § 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 § 594.506(a). E:\FR\FM\19DER1.SGM 19DER1 103650 Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations (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 § 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 § 501.801 of this chapter. (c) Records. Consistent with §§ 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 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 62. Revise and republish § 597.513 to read as follows: ■ lotter on DSK11XQN23PROD with RULES1 § 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 § 597.505 to or on behalf of any person VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 whose property and interests in property are blocked pursuant to § 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 § 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 § 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 § 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 OFACReport@ treasury.gov 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 PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 blocked pursuant to § 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 § 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 § 501.801 of this chapter. (c) Records. Consistent with §§ 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 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 64. In § 598.508, revise and republish paragraph (b) to read as follows: ■ § 598.508 Payments for legal services from funds originating outside the United States. * E:\FR\FM\19DER1.SGM * * 19DER1 * * Federal Register / Vol. 89, No. 244 / Thursday, December 19, 2024 / Rules and Regulations (b) Records. Consistent with §§ 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 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 66. In § 599.507, revise and republish paragraph (b) to read as follows: ■ § 599.507 Payments for legal services from funds originating outside the United States. lotter on DSK11XQN23PROD with RULES1 * * * * * (b) Records. Consistent with §§ 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 VerDate Sep<11>2014 16:31 Dec 18, 2024 Jkt 265001 (iii) The amount of funds paid in connection with such services. OFFICE OF FOREIGN ASSETS CONTROL Lisa M. Palluconi, Acting Director, Office of Foreign Assets Control. 31 CFR Part 591 [FR Doc. 2024–30344 Filed 12–17–24; 11:15 am] BILLING CODE 4810–AL–P DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Part 591 Publication of Venezuela Sanctions Regulations Web General Licenses 5Q and 8O Office of Foreign Assets Control, Treasury. AGENCY: Publication of web general licenses. ACTION: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is publishing two general licenses (GL) issued pursuant to the Venezuela Sanctions Regulations: GL 5Q and GL 8O, each of which was previously made available on OFAC’s website. SUMMARY: ■ 103651 GL 5Q was issued on November 7, 2024. See SUPPLEMENTARY INFORMATION for additional relevant dates. DATES: 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: https:// ofac.treasury.gov. Background On November 7, 2024, OFAC issued GL 5Q and GL 8O to authorize certain transactions otherwise prohibited by the Venezuela Sanctions Regulations (VSR), 31 CFR part 591. Each GL was made available on OFAC’s website (https:// ofac.treasury.gov) when it was issued. GL 5Q supersedes GL 5P, which was issued on August 12, 2024. GL 8O supersedes GL 8N, which was issued on May 10, 2024. The text of these GLs is provided below. PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 Venezuela Sanctions Regulations GENERAL LICENSE NO. 5Q Authorizing Certain Transactions Related to the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond on or After March 7, 2025 (a) Except as provided in paragraph (b) of this general license, on or after March 7, 2025, all transactions related to, the provision of financing for, and other dealings in the Petróleos de Venezuela, S.A. 2020 8.5 Percent Bond that would be prohibited by subsection l(a)(iii) of Executive Order (E.O.) 13835 of May 21, 2018, as amended by E.O. 13857 of January 25, 2019, and incorporated into the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), are authorized. (b) This general license does not authorize any transactions or activities otherwise prohibited by the VSR, or any other part of 31 CFR chapter V. (c) Effective November 7, 2024, General License No. 5P, dated August 12, 2024, is replaced and superseded in its entirety by this General License No. 5Q. Lisa M. Palluconi, Acting Director, Office of Foreign Assets Control. Dated: November 7, 2024. OFFICE OF FOREIGN ASSETS CONTROL Venezuela Sanctions Regulations 31 CFR Part 591 GENERAL LICENSE NO. 8O Authorizing Transactions Involving Petróleos de Venezuela, S.A. (PdVSA) Necessary for the Limited Maintenance of Essential Operations in Venezuela or the Wind Down of Operations in Venezuela for Certain Entities (a) Except as provided in paragraphs (c) and (d) of this general license, all transactions and activities prohibited by Executive Order (E.O.) 13850 of November 1, 2018, as amended by E.O. 13857 of January 25, 2019, or E.O. 13884 of August 5, 2019, each as incorporated into the Venezuela Sanctions Regulations, 31 CFR part 591 (the VSR), that are ordinarily incident and necessary to the limited maintenance of essential operations, contracts, or other agreements, that: (i) are for safety or the preservation of assets in Venezuela; (ii) involve PdVSA or any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest; and (iii) were in effect prior to July 26, 2019, are authorized through 12:01 a.m. eastern daylight time, May 9, 2025, for the following entities and their subsidiaries (collectively, the ‘‘Covered Entities’’): • Halliburton • Schlumberger Limited • Baker Hughes Holdings LLC • Weatherford International, Public Limited Company Note to paragraph (a). Transactions and activities necessary for safety or the preservation of assets in Venezuela that are authorized by paragraph (a) of this general E:\FR\FM\19DER1.SGM 19DER1

Agencies

[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 [www.gpo.gov]
[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.

-----------------------------------------------------------------------

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: https://ofac.treasury.gov.

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 [email protected] 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 [email protected] 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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