§591.506 Provision of certain legal services authorized.
(a) The provision of the following legal services to or on behalf of persons whose property and interests in property are blocked pursuant to §591.201 is authorized, provided that receipt of payment of professional fees and reimbursement of incurred expenses must be specifically licensed or otherwise authorized pursuant to §591.507:
(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 persons whose property and interests in property are blocked pursuant to §591.201 not otherwise authorized in this part, requires the issuance of a specific license.
(c) 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 §591.201 is prohibited unless licensed pursuant to this part.
Note to §591.506: 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 OFAC to authorize the release of a limited amount of blocked funds for the payment of legal fees where alternative funding sources are not available. For more information, see OFAC's Guidance on the Release of Limited Amounts of Blocked Funds for Payment of Legal Fees and Costs Incurred in Challenging the Blocking of U.S. Persons in Administrative or Civil Proceedings, which is available on OFAC's Web site: www.treasury.gov/ofac.
1) All sanctions regulations contain a GL allowing for the provision of certain legal services. The GL is, with some exceptions, boilerplate across sanctions programs, albeit with substantial variability on the question of whether or not payments for such services require a specific license. Read in conjunction with the GL dealing with payments for legal services.
Refer to Notes Common to most Versions of the "Provision of Legal Services" General License (System Ed. Note).
2) Prior to November, 2019, this was one of the many legal services-related GLs that applied on its face to “any further Executive orders relating to” the national emergency underlying the sanctions regulations at issue. This was notable because GLs do not apply by default in this fashion. See General Note on the Relationship Between Executive Orders, General Licenses and Sanctions Regulations Issued Pursuant to a Common National Emergency (System Ed. Note). This provision was amended in November, 2019, to account for the fact that the “prohibited transactions” provision of the VSR (591.201) had been altered so as to apply to all executive orders issued in connection with the national emergency declared in EO 13692, as opposed to just transactions prohibited by EO 13692 itself.
3) See FAQ # 808 and FAQ # 809.