Press release from Treasury Department
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/cuba_fact_sheet_03152016.pdf
Travel and Related Transactions– People-to-people educational travel. Individuals will be authorized to travel to Cuba for individual people-to-people educational travel, provided that the traveler engages in a full-time schedule of educational exchange activities intended to enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people’s independence from Cuban authorities and that will result in a meaningful interaction between the traveler and individuals in Cuba. Previously, the general license authorizing educational travel required such trips to take place under the auspices of an organization that was subject to U.S. jurisdiction and required all travelers to be accompanied by a representative of the sponsoring organization. This change is intended to make authorized educational travel to Cuba more accessible and less expensive for U.S. citizens, and will increase opportunities for direct engagement between Cubans and Americans. Persons relying upon this authorization must retain records related to the authorized travel transactions, including records demonstrating a full-time schedule of authorized activities. In the case of an individual traveling under the auspices of an organization that is a person subject to U.S. jurisdiction and that sponsors such exchanges to promote people-to-people contact, the individual may rely on the entity sponsoring the travel to satisfy those recordkeeping requirements. The statutory prohibition on travel for tourist activities remains in place.
Revised Frequently Asked Questions https://www.treasury.gov/resource-center/sanctions/Programs/Documents/cuba_faqs_new.pdf
UPDATED JULY 25, 2016
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/cuba_fact_sheet_03152016.pdf
Travel and Related Transactions– People-to-people educational travel. Individuals will be authorized to travel to Cuba for individual people-to-people educational travel, provided that the traveler engages in a full-time schedule of educational exchange activities intended to enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people’s independence from Cuban authorities and that will result in a meaningful interaction between the traveler and individuals in Cuba. Previously, the general license authorizing educational travel required such trips to take place under the auspices of an organization that was subject to U.S. jurisdiction and required all travelers to be accompanied by a representative of the sponsoring organization. This change is intended to make authorized educational travel to Cuba more accessible and less expensive for U.S. citizens, and will increase opportunities for direct engagement between Cubans and Americans. Persons relying upon this authorization must retain records related to the authorized travel transactions, including records demonstrating a full-time schedule of authorized activities. In the case of an individual traveling under the auspices of an organization that is a person subject to U.S. jurisdiction and that sponsors such exchanges to promote people-to-people contact, the individual may rely on the entity sponsoring the travel to satisfy those recordkeeping requirements. The statutory prohibition on travel for tourist activities remains in place.
Revised Frequently Asked Questions https://www.treasury.gov/resource-center/sanctions/Programs/Documents/cuba_faqs_new.pdf
UPDATED JULY 25, 2016
13. What constitutes “people-to-people travel” for generally authorized travel?
OFAC has issued a general license that incorporates prior specific licensing policy and
authorizes, subject to conditions, travel-related transactions and other transactions that are
directly incident to people-to-people educational activities in Cuba. Among other things, this
general license authorizes, subject to conditions, persons subject to U.S. jurisdiction to engage in
certain educational exchanges in Cuba either individually or under the auspices of an organization
that is a person subject to U.S. jurisdiction and sponsors such exchanges to promote people-topeople
contact. Travelers utilizing this general license must ensure they maintain a full-time
schedule of educational exchange activities intended to enhance contact with the Cuban people,
support civil society in Cuba, or promote the Cuban people’s independence from Cuban
authorities, and that will result in meaningful interaction between the traveler and individuals in
Cuba. The predominant portion of the activities must not be with a prohibited official of the
Government of Cuba, as defined in 31 CFR § 515.337, or a prohibited member of the Cuban
Communist Party, as defined in 31 CFR § 515.338. For travel conducted under the auspices of an
organization, an employee, paid consultant, or agent of the sponsoring organization must
accompany each group traveling to Cuba to ensure that each traveler has a full-time schedule of
educational exchange activities. In addition, persons relying upon this authorization must retain
records related to the authorized travel transactions, including records demonstrating a full-time
schedule of authorized activities. In the case of an individual traveling under the auspices of an
organization that is a person subject to U.S. jurisdiction and that sponsors such exchanges to
promote people-to-people contact, the individual may rely on the entity sponsoring the travel to
satisfy his or her record keeping obligations with respect to the requirements described above. For
a complete description of what this general license authorizes and the restrictions that apply, see
31 CFR § 515.565(b).
14. What is an “organization” in the people–to-people context?
In the people-to-people context, an organization is an entity subject to U.S. jurisdiction that
sponsors educational exchanges that do not involve academic study pursuant to a degree program
and that promote people-to-people contact. For a complete description of what this general
license authorizes and the restrictions that apply, see 31 CFR § 515.565(b).
*****************************
OFAC has issued a general license that incorporates prior specific licensing policy and
authorizes, subject to conditions, travel-related transactions and other transactions that are
directly incident to people-to-people educational activities in Cuba. Among other things, this
general license authorizes, subject to conditions, persons subject to U.S. jurisdiction to engage in
certain educational exchanges in Cuba either individually or under the auspices of an organization
that is a person subject to U.S. jurisdiction and sponsors such exchanges to promote people-topeople
contact. Travelers utilizing this general license must ensure they maintain a full-time
schedule of educational exchange activities intended to enhance contact with the Cuban people,
support civil society in Cuba, or promote the Cuban people’s independence from Cuban
authorities, and that will result in meaningful interaction between the traveler and individuals in
Cuba. The predominant portion of the activities must not be with a prohibited official of the
Government of Cuba, as defined in 31 CFR § 515.337, or a prohibited member of the Cuban
Communist Party, as defined in 31 CFR § 515.338. For travel conducted under the auspices of an
organization, an employee, paid consultant, or agent of the sponsoring organization must
accompany each group traveling to Cuba to ensure that each traveler has a full-time schedule of
educational exchange activities. In addition, persons relying upon this authorization must retain
records related to the authorized travel transactions, including records demonstrating a full-time
schedule of authorized activities. In the case of an individual traveling under the auspices of an
organization that is a person subject to U.S. jurisdiction and that sponsors such exchanges to
promote people-to-people contact, the individual may rely on the entity sponsoring the travel to
satisfy his or her record keeping obligations with respect to the requirements described above. For
a complete description of what this general license authorizes and the restrictions that apply, see
31 CFR § 515.565(b).
14. What is an “organization” in the people–to-people context?
In the people-to-people context, an organization is an entity subject to U.S. jurisdiction that
sponsors educational exchanges that do not involve academic study pursuant to a degree program
and that promote people-to-people contact. For a complete description of what this general
license authorizes and the restrictions that apply, see 31 CFR § 515.565(b).
*****************************
https://www.federalregister.gov/articles/2016/03/16/2016-06018/cuban-assets-control-regulations#h-16
(b) General
license for people-to-people travel. The travel-related transactions
set forth in § 515.560(c) and such
additional transactions as are directly incident to educational exchanges not
involving academic study pursuant to a degree program are authorized, provided
that:
(1)
Travel-related transactions pursuant to this authorization must be for the
purpose of engaging, while in Cuba, in a full-time schedule of activities
intended to enhance contact with the Cuban people, support civil society in
Cuba, or promote the Cuban people's independence from Cuban authorities;
(2)
Each traveler has a full-time schedule of educational exchange activities that
will result in meaningful interaction between the traveler and individuals in
Cuba;
(3)
The predominant portion of the activities engaged in by individual travelers is
not with a prohibited official of the Government of Cuba, as defined in § 515.337 of this part, or a prohibited member of the Cuban
Communist Party, as defined in § 515.338 of this part;
(4)
For travel conducted under the auspices of an organization that is a person
subject to U.S. jurisdiction that sponsors such exchanges to promote
people-to-people contact, an employee, paid consultant, or agent of the
sponsoring organization must accompany each group traveling to Cuba to ensure
that each traveler has a full-time schedule of educational exchange activities;
and
Note to § 515.565(b)(4):
An organization that sponsors and organizes trips to Cuba in
which travelers engage in individually selected and/or self-directed activities
would not qualify for the general license. Authorized trips are expected to be
led by the organization and to have a full-time schedule of activities in which
the travelers will participate.
(5)
In addition to all other information required by § 501.601 of this chapter, persons relying on the authorization in
paragraph (b) of this section must retain records sufficient to demonstrate
that each individual traveler has engaged in a full-time schedule of activities
that satisfy the requirements of paragraphs (b)(1) through (3) of this section.
In the case of an individual traveling under the auspices of an organization
that is a person subject to U.S. jurisdiction and that sponsors such exchanges
to promote people-to-people contact, the individual may rely on the entity
sponsoring the travel to satisfy his or her recordkeeping requirements with
respect to the requirements of paragraphs (b)(1) through (3) of this section.
These records must be furnished to the Office of Foreign Assets Control on
demand pursuant to § 501.602
of this chapter.
Example 1 to § 515.565(b):Back to Top
An
organization wishes to sponsor and organize educational exchanges not involving
academic study pursuant to a degree program for individuals to learn
side-by-side with Cuban individuals in areas such as environmental protection
or the arts. The travelers will have a full-time schedule of educational
exchange activities that will result in meaningful interaction between the
travelers and individuals in Cuba. The organization's activities qualify for
the general license, and the individual may rely on the entity sponsoring the
travel to satisfy his or her recordkeeping requirement.
Example 2 to § 515.565(b):Back to Top
An
individual plans to travel to Cuba to participate in discussions with Cuban
artists on community projects, exchanges with the founders of a youth arts
program, and to have extended dialogue with local city planners and architects
to learn about historical restoration projects in Old Havana. The traveler will
have a full-time schedule of such educational exchange activities that will
result in meaningful interaction between the traveler and individuals in Cuba.
The individual's activities qualify for the general license, provided that the
individual satisfies the recordkeeping requirement.
Example 3 to § 515.565(b):Back to Top
An
individual plans to travel to Cuba to participate in discussions with Cuban
farmers and produce sellers about cooperative farming and agricultural
practices and have extended dialogue with religious leaders about the influence
of African traditions and religion on society and culture. The traveler fails
to keep any records of the travel. Although the traveler will have a full-time
schedule of educational exchange activities that will result in meaningful
interaction between the traveler and individuals in Cuba, the traveler's failure
to keep records means that the individual's activities do not qualify for the
general license.
Example 4 to § 515.565(b):Back to Top
An
individual plans to travel to Cuba to rent a bicycle to explore the streets of
Havana, engage in brief exchanges with shopkeepers while making purchases, and
have casual conversations with waiters at restaurants and hotel staff. None of
these activities are educational exchange activities that will result in
meaningful interaction between the traveler and individuals in Cuba, and the
traveler's trip does not qualify for the general license.
Example 5 to § 515.565(b):Back to Top
An
individual plans to travel to Cuba to participate in discussions with Cuban
farmers and produce sellers about cooperative farming and agricultural
practices and have extended dialogue with religious leaders about the influence
of African traditions and religion on society and culture. The individual also
plans to spend a few days engaging in brief exchanges with Cuban food vendors
while spending time at the beach. Only some of these activities are
educational exchange activities that will result in meaningful interaction
between the traveler and individuals in Cuba, and the traveler therefore does
not have a full-time schedule of such activities on each day of the trip. The
trip does not qualify for the general license.
Note to § 515.565(a) and
(b):
Except as provided in § 515.565(b)(5),
each person relying on the general authorizations in these paragraphs,
including entities sponsoring travel pursuant to the authorization in § 515.565(b),
must retain specific records related to the authorized travel transactions. See
§§ 501.601
and 501.602 of this chapter for applicable recordkeeping and reporting
requirements.
(c)
Transactions related to activities that are primarily tourist-oriented are not
authorized pursuant to this section.
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OFAC Language to Stop Bank and Paypal Account Freezes
There have been numerous instances of Paypal and bank transfers, checks etc. frozen because "Cuba" was mentioned in a memo line. The following language should end that problem but it is safer to avoid all Cuba references.
52. Is a financial institution required to independently verify that an individual’s travel is authorized when processing Cuba travel-related transactions? No. A financial institution may rely on U.S. travelers to provide their certifications of authorized travel directly to the person providing travel or carrier services when processing Cuba travelrelated transactions, unless the financial institution knows or has reason to know that the travel is not authorized by a general or specific license.
The CACR requires persons subject to U.S. jurisdiction providing travel or carrier services to retain for at least five years from the date of the transaction a certification from each customer indicating the section of the CACR that authorizes the person to travel to Cuba. See § 515.572(b). U.S. travelers utilizing a general or specific license are also required to retain for five years records associated with their travel to Cuba.
53. May a person subject to U.S. jurisdiction utilize online payment platforms to facilitate or process authorized transactions involving Cuba or a Cuban entity? Yes. Subject to certain exceptions, transactions that are ordinarily incident to an authorized transaction are authorized. Such transactions may include use of online payment platforms to facilitate authorized transactions. Please see the interpretive guidance in 31 CFR § 515.421.
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/cuba_faqs_new.pdf
UPDATED NOVEMBER 25, 2015 BY THE OFFICE OF FOREIGN ASSETS CONTROL
52. Is a financial institution required to independently verify that an individual’s travel is authorized when processing Cuba travel-related transactions? No. A financial institution may rely on U.S. travelers to provide their certifications of authorized travel directly to the person providing travel or carrier services when processing Cuba travelrelated transactions, unless the financial institution knows or has reason to know that the travel is not authorized by a general or specific license.
The CACR requires persons subject to U.S. jurisdiction providing travel or carrier services to retain for at least five years from the date of the transaction a certification from each customer indicating the section of the CACR that authorizes the person to travel to Cuba. See § 515.572(b). U.S. travelers utilizing a general or specific license are also required to retain for five years records associated with their travel to Cuba.
53. May a person subject to U.S. jurisdiction utilize online payment platforms to facilitate or process authorized transactions involving Cuba or a Cuban entity? Yes. Subject to certain exceptions, transactions that are ordinarily incident to an authorized transaction are authorized. Such transactions may include use of online payment platforms to facilitate authorized transactions. Please see the interpretive guidance in 31 CFR § 515.421.
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/cuba_faqs_new.pdf
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