Section 584.508 - Payments for legal services from funds originating outside the United States(a) Receipt of payment of professional fees and reimbursement of incurred expenses for the provision of legal services authorized pursuant to § 584.507(a) to or on behalf of any person whose property and interests in property are blocked pursuant to § 584.201(a) or any Executive orders or further Presidential action relating to the Magnitsky Act is authorized from funds originating outside the United States, provided that the funds do not originate from:(1) A source within the United States;(2) Any source, wherever located, within the possession or control of a U.S. person; or(3) Any individual or entity, other than the person on whose behalf the legal services authorized pursuant to § 584.507(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.Note to paragraph (a): This paragraph authorizes the blocked person on whose behalf the legal services authorized pursuant to § 584.507(a) are to be provided to make payments for authorized legal services using funds originating outside the United States that were not previously blocked. Nothing in this paragraph authorizes payments for legal services using funds in which any other person whose property and interests in property are blocked pursuant to § 584.201(a) , any other part of this chapter, or any Executive order has an interest.
(b)Reports.(1) U.S. persons who receive payments pursuant to paragraph (a) of this section must submit annual reports no later than 30 days following the end of the calendar year during which the payments were received providing information on the funds received. Such reports shall specify:(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 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;(B) A general description of the services provided; and(C) The amount of funds paid in connection with such services.tm(2) All required reports must reference this section and are to be submitted to OFAC using one of the below methods:(i)Email: OFAC.Regulations.Reports@treasury.gov; or(ii)U.S. mail : OFAC Regulations Reports, Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW, Freedman's Bank Building, Washington, DC 20220.Note to § 584.508 : U.S. persons who receive payments in connection with legal services authorized pursuant to § 584.507(a) 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. Additionally, U.S. persons do not need to obtain specific authorization to provide related services that are ordinarily incident to the provision of legal services authorized pursuant to § 584.507(a) .
82 FR 60509 , 12/21/2017; 82 FR 60509 , 12/21/2017