Rule detail : 237985

OFAC Legal Services Payments

Published on: Dec 24, 2024

On Dec. 19, OFAC issued final rule relating to legal services payments.

OFAC issued final rule amending multiple CFR provisions to update general licenses authorizing payments for legal services from funds originating outside United States.
Amends 31 CFR 510, 31 CFR 515, 31 CFR 526, 31 CFR 536, 31 CFR 544, 31 CFR 547 through 31 CFR 553, 31 CFR 555, 31 CFR 558, 31 CFR 569, 31 CFR 570, 31 CFR 576.
Also 31 CFR 578, 31 CFR 579, 31 CFR 582, 31 CFR 583, 31 CFR 584, 31 CFR 585, 31 CFR 587 through 31 CFR 591, 31 CFR 594, 31 CFR 597, 31 CFR 598, and 31 CFR 599.
Amendments
The final rule makes amendments replacing the reporting requirement in the general license with a recordkeeping requirement in applicable parts of 31 CFR Chapter V.
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.
Updates general licenses authorizing provision of certain legal services, adds general license authorizing payment for legal services from funds originating outside the US.
Removes the requirement for a letter of engagement prior to receiving payment.
Effectiveness
Final rule is effective Dec. 19, 2024, and applicability date is Mar. 12, 2025.

Regulators

OFAC

Entity Types

B/D; Bank; BS; Corp; IA; Ins; Inv Co; MSB

Reference

89 FR 103641, 12/19/2024; Citation: *31 CFR* 510, 515, 526, 536, 544, 547, 553, 555, 558, 569, 570, 576, 578, 579, 582, 583, 584, 585, 587, 591, 594, 597, 598, 599;

Functions

AML; Compliance; Financial; Legal; Operations; Record Retention; Registration/Licensing; Reporting; Risk; Sanctions

Countries

United States of America