---
kind: "section"
citation: "31 C.F.R. § 525.508"
title: "31"
number: "525.508"
heading: "Payments for legal services from funds originating outside the United States."
url: "https://uscodex.org/cfr/31/525.508"
---

# §525.508. 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 [§ 525.507(a)](/cfr/31/525.507.md?p=a) to or on behalf of any person whose property and interests in property are blocked pursuant to [§ 525.201](/cfr/31/525.201.md), 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 [§ 525.507(a)](/cfr/31/525.507.md?p=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 this [paragraph (a)](#a) authorizes payments for legal services using funds in which any other person whose property and interests in property are blocked pursuant to [§ 525.201](/cfr/31/525.201.md), any other part of this chapter, or any Executive order or statute has an interest.
- (b) **Records.** Consistent with §§ [501.601](/cfr/31/501.601.md) and [501.602](/cfr/31/501.602.md) of this chapter, U.S. persons who receive payments pursuant to [paragraph (a)](#a) of this section must retain for 10 years from the date of the relevant payment, and furnish to OFAC on demand, a record that specifies the following for each payment:
  - (1) The individual or entity from whom the funds originated and the amount of funds received; and
  - (2) If applicable:
    - (i) 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;
    - (ii) A general description of the services provided; and
    - (iii) **The amount of funds paid in connection with such services.**

## Notes

### Authority

Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; 28 U.S.C. 2461 note (Pub. L. 101-410, 104 Stat. 890, as amended); E.O. 14014, 86 FR 9429, 3 CFR, 2021 Comp., p. 514.

### Source

Source: 89 FR 89483, Nov. 13, 2024, unless otherwise noted.