Weapons of Mass Destruction Proliferators Sanctions Regulations
| Published date | 16 February 2022 |
| Citation | 87 FR 8733 |
| Record Number | 2022-03361 |
| Section | Rules and Regulations |
| Court | Foreign Assets Control Office |
Federal Register, Volume 87 Issue 32 (Wednesday, February 16, 2022)
[Federal Register Volume 87, Number 32 (Wednesday, February 16, 2022)]
[Rules and Regulations]
[Pages 8733-8735]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03361]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 544
Weapons of Mass Destruction Proliferators Sanctions Regulations
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 amending the Weapons of Mass Destruction
Proliferators Sanctions Regulations to revise an existing general
license authorizing the provision of certain legal services and add a
general license authorizing payments for legal services from funds
originating outside the United States.
DATES: This rule is effective February 16, 2022.
FOR FURTHER INFORMATION CONTACT: OFAC: Assistant Director for
Licensing, 202-622-2480; Assistant Director for Regulatory Affairs,
202-622-4855; or Assistant Director for Sanctions Compliance &
Evaluation, 202-622-2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available on OFAC's website: www.treasury.gov/ofac.
[[Page 8734]]
Background
On April 13, 2009, OFAC issued the Weapons of Mass Destruction
Proliferators Sanctions Regulations, 31 CFR part 544 (74 FR 16771,
April 13, 2009) (the ``Regulations''), to implement Executive Order
(E.O.) 13382 of June 28, 2005, ``Blocking Property of Weapons of Mass
Destruction Proliferators and Their Supporters'' (70 FR 38567, July 1,
2005). OFAC is amending the Regulations with respect to payments for
legal services as set forth in more detail below.
Section 544.507 of the Regulations authorizes U.S. persons to
provide certain legal services to or on behalf of persons whose
property and interests in property are blocked pursuant to Sec.
544.201(a) provided that all receipts of payment of professional fees
and reimbursement of incurred expenses must be specifically licensed.
OFAC is revising Sec. 544.507 to remove the requirement that all
receipts of payment of professional fees and reimbursement of incurred
expenses must only be specifically licensed and to otherwise update
language throughout the section so that Sec. 544.507 conforms with the
legal services general license in other sanctions programs. OFAC is
also redesignating Sec. 544.508 as Sec. 544.509 and adding a new
general license at Sec. 544.508 authorizing a permissible payment
mechanism for legal services without the need for a specific license.
Specifically, new Sec. 544.508 authorizes payments from funds
originating outside the United States and that do not come from a U.S.
person or any person whose property and interests in property are
blocked, other than the person on whose behalf the authorized legal
services are provided. This payment mechanism has previously been
incorporated into the regulations for a number of other sanctions
programs.
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), 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 Part 544
Administrative practice and procedure, Banks, Banking, Blocking of
assets, Credit, Foreign trade, Legal services, Penalties,
Proliferation, Reporting and recordkeeping requirements, Sanctions,
Securities, Services, Weapons of mass destruction.
For the reasons set forth in the preamble, OFAC amends 31 CFR part
544 as follows:
PART 544--WEAPONS OF MASS DESTRUCTION PROLIFERATORS SANCTIONS
REGULATIONS
0
1. The authority citation for part 544 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; 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
2. Revise Sec. 544.507 to read as follows:
Sec. 544.507 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. 544.201(a) is authorized, provided that any receipt
of payment of professional fees and reimbursement of incurred expenses
must be authorized pursuant to Sec. 544.508, 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. 544.201(a), 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. 544.404.
(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. 544.201(a) is prohibited unless licensed
pursuant to this part.
Note 1 to Sec. 544.507. 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 the Office of Foreign Assets Control (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.
Sec. 544.508 [Redesignated as Sec. 544.509]
0
3. Redesignate Sec. 544.508 as Sec. 544.509.
0
4. Add new Sec. 544.508 to subpart E to read as follows:
[[Page 8735]]
Sec. 544.508 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. 544.507(a) to
or on behalf of any person whose property and interests in property are
blocked pursuant to Sec. 544.201(a) 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. 544.507(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 paragraph (a) of this section authorizes payments
for legal services using funds in which any other person whose property
and interests in property are blocked pursuant to Sec. 544.201(a), any
other part of this chapter, or any Executive order or statute 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.
(2) The reports, which must reference this section, are to be
submitted to OFAC using one of the following methods:
(i) Email (preferred method): [email protected]; 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.
Dated: February 11, 2022
Andrea M. Gacki
Director, Office of Foreign Assets Control.
[FR Doc. 2022-03361 Filed 2-15-22; 8:45 am]
BILLING CODE 4810-AL-P
