# Payments for legal services from funds originating outside the United States.
**AGENCY:**
Office of Foreign Assets Control, Treasury.
**ACTION:**
Final rule.
**SUMMARY:**
The Department of the Treasury's Office of Foreign Assets Control (OFAC) is adopting a final rule amending multiple CFR parts to update general licenses authorizing payments for legal services from funds originating outside the United States. Specifically, OFAC is replacing the reporting requirement in the general license with a recordkeeping requirement in applicable parts of 31 CFR chapter V. Additionally, in two CFR parts, OFAC is updating the general licenses authorizing the provision of certain legal services and adding a general license authorizing payment for legal services from funds originating outside the United States.
**DATES:**
*Effective date:* This rule is effective December 19, 2024.
*Applicability date:* This rule is applicable on March 12, 2025.
**FOR FURTHER INFORMATION CONTACT:**
OFAC: Assistant Director for Licensing, 202-622-2480; Assistant Director for Regulatory Affairs, 202-622-4855; or Assistant Director for Compliance, 202-622-2490.
**SUPPLEMENTARY INFORMATION:**
**Electronic Availability**
This document and additional information concerning OFAC are available on OFAC's website: *https://ofac.treasury.gov.*
**Background**
**Updating Existing General Licenses Authoring Payments for Legal Services From Funds Originating Outside the United States**
In this rule, OFAC is updating 31 CFR 510, 515, 526, 536, 544, 547, 548, 549, 550, 551, 552, 553, 555, 558, 569, 570, 576, 578, 579, 582, 583, 584, 585, 587, 588, 589, 590, 591, 594, 597, 598, and 599 to update or add general licenses authorizing payments for legal services from funds originating outside the United States. Specifically, OFAC is replacing the requirement in the general license to submit annual reports for payments received with a requirement to retain for ten years records with details of payments received.
In 31 CFR 591, in addition to replacing the reporting requirement with a recordkeeping requirement as described above, OFAC is revising the general license by simplifying the language that authorizes payments.
In 31 CFR 594 and 597, in addition to replacing the reporting requirement with a recordkeeping requirement as described above, OFAC is updating § 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.
**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**
**31 CFR Part 510**
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, 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**
**31 CFR Part 510**
2. In § 510.508, revise and republish paragraph (b) to read as follows:
§ 510.508
(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**
**31 CFR Part 515**
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**
**31 CFR Part 515**
4. In § 515.512, revise and republish paragraph (e)(2) to read as follows:
§ 515.512
(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 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**
**31 CFR Part 526**
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**
**31 CFR Part 526**
6. In § 526.508, revise and republish paragraph (b) to read as follows:
§ 526.508
(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**
**31 CFR Part 536**
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**
**31 CFR Part 536**
8. In § 536.507, revise and republish paragraph (b) to read as follows:
§ 536.507
(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**
**31 CFR Part 544**
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**
**31 CFR Part 544**
10. In § 544.508, revise and republish paragraph (b) to read as follows:
§ 544.508
(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 547—DEMOCRATIC REPUBLIC OF THE CONGO SANCTIONS REGULATIONS**
**31 CFR Part 547**
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**
**31 CFR Part 547**
12. In § 547.508, revise and republish paragraph (b) to read as follows:
§ 547.508
(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 548—BELARUS SANCTIONS REGULATIONS**
**31 CFR Part 548**
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**
**31 CFR Part 548**
14. In § 548.508, revise and republish paragraph (b) to read as follows:
§ 548.508
(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**
**31 CFR Part 549**
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**
**31 CFR Part 549**
16. Revise § 549.507 to read as follows:
§ 549.507
(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 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 legal services where alternative funding sources are not available.
§§ 549.508 through 549.512
**31 CFR Part 549**
17. Redesignate §§ 549.508 through 549.512 as §§ 549.509 through 549.513.
**31 CFR Part 549**
18. Add new § 549.508 to read as follows:
§ 549.508
(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.
**PART 550—ETHIOPIA SANCTIONS REGULATIONS**
**31 CFR Part 550**
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**
**31 CFR Part 550**
20. In § 550.507, revise and republish paragraph (b) to read as follows:
§ 550.507
(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**
**31 CFR Part 551**
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**
**31 CFR Part 551**
22. In § 551.508, revise and republish paragraph (b) to read as follows:
§ 551.508
(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 552—YEMEN SANCTIONS REGULATIONS**
**31 CFR Part 552**
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**
**31 CFR Part 552**
24. In § 552.508, revise and republish paragraph (b) to read as follows:
§ 552.508
(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**
**31 CFR Part 553**
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. 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**
**31 CFR Part 553**
26. In § 553.508, revise and republish paragraph (b) to read as follows:
§ 553.508
(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**
**31 CFR Part 55**
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**
**31 CFR Part 555**
28. In § 555.508, revise and republish paragraph (b) to read as follows:
§ 555.508
(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 558—SOUTH SUDAN SANCTIONS REGULATIONS**
**31 CFR Part 558**
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**
**31 CFR Part 558**
30. In § 558.508 revise and republish paragraph (b) to read as follows:
§ 558.508
(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 CFR Part 569**
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**
**31 CFR Part 569**
32. In § 569.507, revise and republish paragraph (b) to read as follows:
§ 569.507
(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**
**31 CFR Part 570**
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**
**31 CFR Part 570**
34. In § 570.508, revise and republish paragraph (b) to read as follows:
§ 570.508
(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 576—IRAQ STABILIZATION AND INSURGENCY SANCTIONS REGULATIONS**
**31 CFR Part 576**
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**
**31 CFR Part 576**
39. Revise and republish § 576.507 to read as follows:
§ 576.507
(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.
(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.
**31 CFR Part 576**
36. Add § 576.508 to read as follows:
§ 576.508
(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 § 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**
**31 CFR Part 578**
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**
**31 CFR Part 578**
38. In § 578.508, revise and republish paragraph (b) to read as follows:
§ 578.508
(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 579—FOREIGN INTERFERENCE IN U.S. ELECTIONS SANCTIONS REGULATIONS**
**31 CFR Part 579**
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**
**31 CFR Part 579**
40. In § 579.507, revise and republish paragraph (b) to read as follows:
§ 579.507
(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**
**31 CFR Part 582**
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**
**31 CFR Part 582**
42. In § 582.507, revise and republish paragraph (b) to read as follows:
§ 582.507
(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**
**31 CFR Part 583**
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
**31 CFR Part 583**
44. In § 583.508, revise and republish paragraph (b) to read as follows:
§ 583.508
(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 584—MAGNITSKY ACT SANCTIONS REGULATIONS**
**31 CFR Part 584**
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**
**31 CFR Part 584**
46. In § 584.508, revise and republish paragraph (b) to read as follows:
§ 584.508
(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**
**31 CFR Part 585**
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**
**31 CFR Part 585**
48. In § 585.507, revise and republish paragraph (b) to read as follows:
§ 585.507
(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 587—RUSSIAN HARMFUL FOREIGN ACTIVITIES SANCTIONS REGULATIONS**
**31 CFR Part 587**
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**
**31 CFR Part 587**
50. In § 587.507, revise and republish paragraph (b) to read as follows:
§ 587.507
(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**
**31 CFR Part 588**
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**
**31 CFR Part 588**
52. In § 588.508, revise and republish paragraph (b) to read as follows:
§ 588.508
(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-/RUSSIA-RELATED SANCTIONS REGULATIONS**
**31 CFR Part 589**
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**
**31 CFR Part 589**
54. In § 589.507, revise and republish paragraph (b) to read as follows:
§ 589.507
(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**
**31 CFR Part 590**
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**
**31 CFR Part 590**
56. In § 590.508, revise and republish paragraph (b) to read as follows:
§ 590.508
(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 591—VENEZUELA SANCTIONS REGULATIONS**
**31 CFR Part 591**
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**
**31 CFR Part 591**
58. Revise and republish § 591.507 to read as follows:
§ 591.507
(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 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**
**31 CFR Part 594**
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**
**31 CFR Part 594**
60. Revise and republish § 594.517 to read as follows:
§ 594.517
(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.
(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 *[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 § 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).
(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**
**31 CFR Part 597**
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**
**31 CFR Part 597**
62. Revise and republish § 597.513 to read as follows:
§ 597.513
(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 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 *[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 § 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**
**31 CFR Part 598**
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**
**31 CFR Part 598**
64. In § 598.508, revise and republish paragraph (b) to read as follows:
§ 598.508
(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**
**31 CFR Part 599**
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**
**31 CFR Part 599**
66. In § 599.507, revise and republish paragraph (b) to read as follows:
§ 599.507
(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.
Lisa M. Palluconi,
Acting Director, Office of Foreign Assets Control.