USA LAW AND PRACTICE Contributed by: Seward & Kissel LLP
licence application and authorises certain activities of specific “licensees” on a case-by-case basis. OFAC cautions that persons engaging in transactions pursuant to general or specific licences must ensure that all conditions of the licences are strictly observed. Those applying for a specific licence should ensure that the request includes all necessary information as required in the application guidelines or the regulations pertaining to the particular sanctions programme. When applying for a licence, the applicant should provide a detailed description of the proposed trans- action and the names and addresses of all persons or entities involved, and ensure that the request is supported by sufficient documentation. Applications should also consider including a discussion estab- lishing why approval of the requested licence will not interfere with the policy goals underlying the relevant prohibition(s). 2.3.2 Provision of Legal Services There is no catch-all general licence that permits all provisions of legal services to be offered to desig - nated persons. In a release on 12 January 2017 enti - tled “Guidance on the Provision of Certain Services Relating to the Requirements of US Sanctions Laws”, OFAC clarified that providing information or advice regarding the requirements of US sanctions laws and opining on the legality of specific transactions under US sanctions laws is permitted. However, such servic- es can only be provided to persons other than those whose property and interests are blocked by OFAC (including persons listed on OFAC’s Specially Desig - nated Nationals and Blocked Persons (SDN) List) or to whom a US person is prohibited from exporting or importing services. Notwithstanding this guidance, OFAC has issued general licences authorising the provision of certain legal services to SDNs, including the representation of SDNs in connection with delisting requests. If the regulations for the specific programme under which a person was designated do not contain such a general licence, an attorney must apply for a specific licence from OFAC in order to provide services.
In some instances, OFAC permits the provision of legal services in jurisdictions with territory-wide sanc- tions. For instance, in connection with OFAC sanc- tions targeting Russia, OFAC permits the provision of legal services to or on behalf of a person in the Crimea region of Ukraine; see 31 CFR § 589.506. OFAC also permits the provision of legal services in connection with its Iran and Cuba sanctions regimes; see 31 CFR § 560.525; 31 CFR § 515.512. 2.4 Reporting US persons (and those subject to US jurisdiction) who are in possession or control of blocked property must file a Report on Blocked Property with OFAC within ten business days of the date that the property becomes blocked. Forms for reporting blocked property, wheth - er “Financial” or “Tangible/Real/other Non-Financial Property”, are available on OFAC’s website and are commonly used by reporting persons. Persons hold- ing blocked property must also file an Annual Report on Blocked Property by 30 September, reflecting all blocked property held as of 30 June of the current year. US persons (and those subject to US jurisdiction) must also file a Report of Rejected Transactions within ten business days of the rejection of a transaction that was not blocked, but where processing or engaging in the transaction would nonetheless violate applicable US sanctions. US persons participating in litigation, arbitration or other binding alternative dispute resolution on behalf of or against persons whose property or interests in property are blocked or retained under applicable law, or when the outcome of any proceeding may affect blocked property or retained funds, must provide notice of such proceedings and submit copies of cer- tain documents submitted and orders or opinions ren- dered by the court or other adjudicatory body, as well as reports of hearings or status conferences where it appears the court may issue an order or judgment or is considering or may decide any pending dispositive motion on the merits of the proceeding or any claim raised therein, as further detailed in OFAC’s regula - tions. Persons subject to OFAC record-keeping require - ments (ie, by engaging in a transaction pursuant to an OFAC licence) or reporting requirements with
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