OFAC Expands Legal Services & Payment Options in Terrorism Sanctions Regs
The Office of Foreign Assets Control has issued a final rule, effective December 7, 2010, amending the Global Terrorism Sanctions Regulations (GTSR) and the Terrorism Sanctions Regulations (TSR) to expand the scope of authorizations in each of those programs for the provision of certain legal services.
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In addition, OFAC is adding new general licenses under the GTSR, the TSR, and the Foreign Terrorist Organizations Sanctions Regulations (FTOSR) to authorize U.S. persons to receive specified types of payment for certain authorized legal services.
Expands Scope of Authorized Legal Services for GTSR/TSR Blocked Parties
The GTSR and TSR authorize U.S. persons to provide certain authorized legal services to or on behalf of persons whose property and interests in property are blocked under those regulations, provided that any payment of professional fees and reimbursement of incurred expenses is specifically licensed. OFAC is expanding the scope of these general licenses by adding to the authorized legal services the initiation and conduct of legal, arbitration, or administrative proceedings before any U.S. federal, state, or local court or agency for or on behalf of persons whose property and interests in property are blocked under the GTSR or TSR.
Adds General Licenses Under GTSR, TSR, FTOSR to Authorize Certain Payments for Legal Services
OFAC is also adding new general licenses to the GTSR, TSR, and FTOSR to authorize payments from funds originating outside the U.S. in connection with certain authorized legal services rendered to or on behalf of designated persons, as well as the formation of legal defense funds to gather donations and dispense funds in connection with payments for such legal services. (OFAC explains that it is incorporating certain mechanisms for payment found in specific licenses into new general licenses.)
(OFAC may additionally issue specific licenses authorizing the release of a limited amount of blocked funds for the payment of legal fees and expenses incurred in seeking administrative reconsideration or judicial review of the designation of a U.S. person or blocking the property and interests in property of a U.S. person where alternative funding sources are not available.)
OFAC contact -- Assistant Director for Compliance, Outreach & Implementation -- (202) 622-2490
(FR Pub 12/07/2010)