Updating Authorizations for Payments for Legal Services, 103641-103651 [2024-30344]
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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:
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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.
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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.
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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,
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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.
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*
*
*
*
(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
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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.
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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:
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(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.
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*
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
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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
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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
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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:
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■
(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.
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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
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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.
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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
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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:
■
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§ 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
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(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.
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(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
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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:
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(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.
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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:
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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:
■
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§ 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.
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§ 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:
■
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*
*
*
*
(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
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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.
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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).
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(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
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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
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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]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 510, 515, 526, 536, 544, 547, 548, 549, 550, 551, 552,
553, 555, 558, 569, 570, 576, 578, 579, 582, 583, 584, 585, 587,
588, 589, 590, 591, 594, 597, 598, and 599
Updating Authorizations for Payments for Legal Services
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is adopting a final rule amending multiple CFR parts to
update general licenses authorizing payments for legal services from
funds originating outside the United States. Specifically, OFAC is
replacing the reporting requirement in the general license with a
recordkeeping requirement in applicable parts of 31 CFR chapter V.
Additionally, in two CFR parts, OFAC is updating the general licenses
authorizing the provision of certain legal services and adding a
general license authorizing payment for legal services from funds
originating outside the United States.
DATES:
Effective date: This rule is effective December 19, 2024.
Applicability date: This rule is applicable on March 12, 2025.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Compliance, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: 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