Updating Authorizations for Payments for Legal Services

<RULE> DEPARTMENT OF THE TREASURY <SUBAGY>Office of Foreign Assets Control</SUBAGY> <CFR>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</CFR> <SUBJECT>Updating Authorizations for Payments for Legal Services</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Office of Foreign Assets Control, Treasury. <HD SOURCE="HED">ACTION:</HD> Final rule. <SUM> <HD SOURCE="HED">SUMMARY:</HD> 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. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> <E T="03">Effective date:</E> This rule is effective December 19, 2024. <E T="03">Applicability date:</E> This rule is applicable on March 12, 2025. </EFFDATE> <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> OFAC: Assistant Director for Licensing, 202-622-2480; Assistant Director for Regulatory Affairs, 202-622-4855; or Assistant Director for Compliance, 202-622-2490. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Electronic Availability</HD> This document and additional information concerning OFAC are available on OFAC's website: <E T="03">https://ofac.treasury.gov.</E> <HD SOURCE="HD1">Background</HD> <HD SOURCE="HD2">Updating Existing General Licenses Authoring Payments for Legal Services From Funds Originating Outside the United States</HD> 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. <HD SOURCE="HD1">Public Participation</HD> 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. <HD SOURCE="HD1">Paperwork Reduction Act</HD> 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. <LSTSUB> <HD SOURCE="HED">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</HD> Administrative practice and procedure, Banks, banking, Blocking of assets, Credit, Foreign trade, Legal services, Penalties, Reporting and recordkeeping requirements, Sanctions, Securities, Services. </LSTSUB> For the reasons set forth in the preamble, OFAC amends 31 CFR chapter V to read as follows: <HD SOURCE="HED">PART 510—NORTH KOREA SANCTIONS REGULATIONS</HD> <REGTEXT TITLE="31" PART="510"> 1. The authority citation for part 510 is revised to read as follows: <HD SOURCE="HED">Authority:</HD> 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601 <E T="03">et seq.,</E> 1701 <E T="03">et seq.</E> ; 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. </REGTEXT> <SUBPART> <HD SOURCE="HED">Subpart E—Licenses, Authorizations, and Statements of Licensing Policy</HD> </SUBPART> <REGTEXT TITLE="31" PART="510"> 2. In § 510.508, revise and republish paragraph (b) to read as follows: <SECTION> <SECTNO>§ 510.508</SECTNO> <SUBJECT>Payments for legal services from funds originating outside the United States.</SUBJECT> <STARS/> (b) <E T="03">Records.</E> 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. </SECTION> </REGTEXT> <HD SOURCE="HED">PART 515—CUBAN ASSETS CONTROL REGULATIONS</HD> <REGTEXT TITLE="31" PART="515"> 3. The authority citation for part 515 continues to read as follows: <HD SOURCE="HED">Authority:</HD> 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. </REGTEXT> <SUBPART> <HD SOURCE="HED">Subpart E—Licenses, Authorizations, and Statements of Licensing Policy</HD> </SUBPART> <REGTEXT TITLE="31" PART="515"> 4. In § 515.512, revise and republish paragraph (e)(2) to read as follows: <SECTION> <SECTNO>§ 515.512</SECTNO> <SUBJECT>Provision of certain legal services authorized.</SUBJECT> <STARS/> (e) * * * (2) <E T="03">Records.</E> 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. </SECTION> </REGTEXT> <HD SOURCE="HED">PART 526—HOSTAGES AND WRONGFUL DETENTION SANCTIONS REGULATIONS</HD> <REGTEXT TITLE="31" PART="526"> 5. The authority citation for part 526 is revised to read as follows: <HD SOURCE="HED">Authority:</HD> 3 U.S.C. 301; 22 U.S.C. 1741 <E T="03">et seq.;</E> 31 U.S.C. 321(b); 50 U.S.C. 1601 <E T="03">et seq.,</E> 1701 <E T="03">et seq.;</E> Pub. L. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 79k characters. Full document text is stored and available for version comparison. ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━