Practitioner-Reported OFAC Guidance in re: the Acceptance of Payments for Legal Services as a Subcontractor (2022)

Date issued: Jun. 23 2022

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TURBOFAC Commentary (534 words)

Notes:

1) UNUSUALLY STARK EXAMPLE OF U.S. FIs "DERISKING" IN CONNECTION WITH OTHERWISE LEGAL PAYMENT PROCESSING

The documents in the PDF file constitute an unusually stark example of "de-risking" by U.S. banks. Here, a Russian bank (VTB) was made a party to a lawsuit in the U.S. while it was not yet a blocked person. On February 24, 2023, VTB was blocked pursuant to EO 14024, and on April 19, 2022 Latham & Watkins sought to withdraw as counsel for VTB (p. 4, PDF). The remaining documents in the PDF file show Brafman & Associates, P.C., the would-be replacement counsel for Latham & Watkins, seeking to find a bank willing to accept payment from VTB pursuant to the general license at 587.507. From at least June 15, 2022, up through mid-August, Brafman & Associates sought to find a bank willing...