OFAC Cuba Regulation Changes June 8, 2022, with interpretation

 

Frequently Asked Questions

https://home.treasury.gov/policy-issues/financial-sanctions/faqs/updated/2022-06-08

704. Can travelers engage in “people-to-people travel” to Cuba on an individual basis or as a part of a group?

Persons subject to U.S. jurisdiction may not travel to Cuba to engage in “people-to-people” educational exchanges on an individual basis.  However, group people-to-people travel is generally authorized for educational activities, subject to certain conditions.  Effective June 9, 2022, OFAC amended 31 CFR § 515.565(b) to authorize group people-to-people educational travel conducted under the auspices of an organization that is subject to U.S. jurisdiction and that sponsors such exchanges to promote people-to-people contact, provided such travelers are accompanied by an employee, paid consultant, or agent of the sponsoring organization.  Travel-related transactions authorized pursuant to § 515.565(b) must be for the purpose of engaging, while in Cuba, in a full-time schedule of activities that are intended to enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people’s independence from Cuban authorities; and will result in meaningful interactions with individuals in Cuba. 

For a complete description of what this general license authorizes and the restrictions that apply, see § 515.565.

The export or reexport to Cuba of items subject to the Export Administration Regulations (15 CFR parts 730 through 774), including vessels and aircraft used to provide carrier services, may require separate authorization from the Department of Commerce, Bureau of Industry and Security (BIS).  See § 515.533.  For additional information regarding BIS’s export controls, see BIS’s Cuba webpage.

Updated: June 08, 2022
Updated on 06/08/2022
Cuba Sanctions

702. What constitutes “educational activities” for generally authorized travel and other transactions?

Persons subject to U.S. jurisdiction, including U.S. academic institutions and their faculty, staff, and students, are authorized to engage in the travel-related transactions set forth in 31 CFR § 515.560(c) and such additional transactions as are directly incident to the 12 categories of educational activities, as described in § 515.565(a).  Among other things, this general license authorizes, subject to conditions, faculty, staff, and students at U.S. academic institutions and secondary schools to engage in certain educational activities, including study abroad programs, in Cuba, Cuban scholars to engage in certain educational activities in the United States, and certain activities to facilitate licensed educational programs. U.S. and Cuban universities may engage in academic exchanges and joint non-commercial academic research under the general license.  This provision also authorizes persons subject to U.S. jurisdiction to provide standardized testing services and certain internet-based courses to Cuban nationals.  For a complete description of what this general license authorizes and the restrictions that apply, see § 515.565.

In addition, a general license at § 515.565(b) authorizes, subject to conditions, group people-to-people educational travel conducted under the auspices of an organization that is subject to U.S. jurisdiction and that sponsors such exchanges to promote people-to-people contact, provided such travelers are accompanied by an employee, paid consultant, or agent of the sponsoring organization.  See FAQ 704.

Please note that this general license excludes direct financial transactions with entities and subentities identified on the State Department’s Cuba Restricted List.  For a description of the scope of the prohibition on direct financial transactions and the restrictions and exceptions that apply, see § 515.209.  This general license also excludes from the authorization lodging, paying for lodging, or making any reservation for or on behalf of a third party to lodge, at any property in Cuba on the Cuba Prohibited Accommodations List to the extent prohibited by § 515.210.

Updated: June 08, 2022
Updated on 06/08/2022
Cuba Sanctions

701. What constitutes generally authorized travel-related transactions for “professional research and professional meetings” in Cuba?

31 CFR § 515.564 (a)(1) contains a general license that authorizes, subject to conditions, travel-related transactions and other transactions that are directly incident to professional research in Cuba.  Among other things, this general license authorizes, subject to conditions, professional research in Cuba relating to a traveler’s profession, professional background, or area of expertise.

Effective June 9, 2022, OFAC amended § 515.564(a) to include a general license authorizing, subject to conditions, travel-related and other transactions incident to attendance at or organization of professional meetings or conferences in Cuba.  This general license authorizes persons subject to U.S. jurisdiction to travel to Cuba for purposes of attending or organizing professional meetings or conferences, such as  meetings or conferences to support expanded internet access and remittance processing companies and to provide additional support and training to independent Cuban entrepreneurs.

Please note that these general licenses exclude from the authorization lodging, paying for lodging, or making any reservation for or on behalf of a third party to lodge, at any property in Cuba on the Cuba Prohibited Accommodations List to the extent prohibited by § 515.210.  For a complete description of the scope of this prohibition, see § 515.210.  The traveler’s schedule of activities must not include free time or recreation in excess of that consistent with a full-time schedule of professional research or a full-time schedule of attendance at, or organization of, professional meetings or conferences, respectively.  An entire group does not qualify for the general license merely because some members of the group qualify individually.  For a complete description of what these general licenses authorize and the restrictions that apply, see § 515.564.

Updated: June 08, 2022

 
Updated on 06/08/2022



§ 515.210 Restrictions on lodging, paying for lodging, or making reservations at certain properties in Cuba.

Except as otherwise authorized pursuant to this part, no person subject to U.S. jurisdiction may lodge, pay for lodging, or otherwise make any reservation for or on behalf of a third party to lodge, at any property in Cuba that the Secretary of State has identified as a property that is owned or controlled by the Cuban government,


The all-inclusive list of prohibited hotels is here:   https://www.state.gov/cuba-sanctions/cuba-prohibited-accommodations-list/cuba-prohibited-accommodations-list-initial-publication/

---------------------------------------------------

Frequently Asked Questions

https://home.treasury.gov/policy-issues/financial-sanctions/faqs/added/2022-06-08

Cuba Sanctions

1057. Are remittance forwarding service providers required to independently verify that a sender’s family or donative remittance is authorized when processing such remittances?

No.  Under 31 CFR § 515.572(a)(3), banking institutions, as defined in § 515.314, including U.S.-registered brokers or dealers in securities and U.S.-registered money transmitters, are authorized to provide services in connection with the collection, forwarding, or receipt of remittances authorized pursuant to the CACR, subject to certain conditions.  In addition, under § 515.570(h), banking institutions are authorized to unblock and return blocked remittances that would have been authorized under § 515.570(a) or (b).  Banking institutions may rely on the statements of their customers that remittance transactions are authorized unless they know or have reason to know a transaction is not authorized.  A banking institution is expected to conduct a level of due diligence commensurate with its overall risk profile and internal compliance policies and procedures with respect to a transaction involving Cuba or a Cuban national.
Released on 06/08/2022
Cuba Sanctions

1056. What does the June 9, 2022 amendment to the Cuban Assets Control Regulations (CACR) do?

Effective June 9, 2022, in consultation with the Department of State, OFAC amended the CACR to implement elements of policy changes announced by the Administration on May 16, 2022 to increase support for the Cuban people.

Professional meetings and conferences in Cuba:  Effective June 9, 2022, OFAC amended 31 CFR § 515.564(a) to include a general license authorizing, subject to conditions, travel-related and other transactions incident to attending or organizing professional meetings or conferences in Cuba, such as   professional meetings or conferences to support expanded internet access and remittance processing and to provide additional support and training to independent Cuban entrepreneurs.  OFAC also amended and added cross-references to § 515.564(a) in notes to §§ 515.534, 515.542, 515.547, 515.572, 515.577, and 515.591.

Group people-to-people and other academic educational activities: Effective June 9, 2022, OFAC amended § 515.565(a) to remove certain restrictions on authorized academic educational activities. OFAC also amended § 515.565(b) to authorize group people-to-people educational travel conducted under the auspices of an organization that is subject to U.S. jurisdiction and that sponsors such exchanges to promote people-to-people contact, provided such travelers are accompanied by an employee, paid consultant, or agent of the sponsoring organization.  Travel-related transactions authorized pursuant to § 515.565(b) must be for the purpose of engaging, while in Cuba, in a full-time schedule of activities that are intended to enhance contact with the Cuban people, support civil society in Cuba, or promote the Cuban people’s independence from Cuban authorities; and will result in meaningful interactions with individuals in Cuba.  This amendment does not authorize individual people-to-people travel.  Travel for tourist activities is not permitted.

Remittances:  Effective June 9, 2022, OFAC amended § 515.570(a) to remove the $1,000 quarterly limit on family remittances to Cuban nationals who are close relatives.  OFAC also added § 515.570(b) to authorize donative remittances to Cuban nationals who are not prohibited officials of the Government of Cuba, prohibited members of the Cuban Communist Party, or close relatives of a prohibited official of the Government of Cuba or prohibited member of the Cuban Communist Party.  Finally, OFAC added a general license in § 515.570(h) authorizing the unblocking and return of previously blocked remittances, provided they would be authorized under the revised § 515.570(a) or (b).
Released on 06/08/2022

********************************

FFRD Press Release

For immediate release  6/8/22


For further information, contact John McAuliff
jmcauliff@ffrd.org, 917-859-9025 (phone or Whatsapp)


The Biden Administration announced on the opening day of the Summit of the Americas new regulations governing US travel to Cuba.  (See below)


John McAuliff, Executive Director of the Fund for Reconciliation and Development, characterized the regulations as "welcome but with limited immediate application, possibly intended to soften the impact with Summit participants of the unpopular decision to exclude Cuba."


"It does little good to permit group people to people travel and professional conferences yet leave in place Trump's punitive political prohibition on use of all hotels.  From personal experience I know that tour groups cannot easily function spread around fifteen or twenty private casas particulares. (bed and  breakfasts)."


McAuliff also observed, "The US visitors who work best outside of hotels are independent visitors.  Ironically the new regulations reiterate that the general license applies only to groups not to individual travelers."


He noted, "Both Cuban and American officials are hostile to the most authentic, least scripted, encounters.  Independent travelers with a good guidebook or an independent Cuban guide, available despite their prohibited local status, enjoy the most spontaneous and personally meaningful experiences."


Finally regarding the provision on remittances he said, "It is profoundly humanitarian to permit unlimited family and donative emittances , but meaningless until Western Union and similar services are allowed to operate conventionally with Cuban banking institutions."

McAuliff concluded, "If the Administration wants to be taken seriously, it needs to restore use of Cuban hotels and listen to other countries in the Hemisphere about the need for an inclusionist approach to Cuba, including the end of our unilateral and universally condemned embargo."


John McAuliff  founded the Fund for Reconciliation and and Development in1985.  He worked for twenty five years to achieve normalization of US diplomatic, economic and cultural relations with Vietnam, Laos and Cambodia, initially on behalf of the American Friends Service Committee.  He has worked for the same goal with Cuba for the last twenty-five years, visiting the country 62 times, most recently during the first half of May 2022.  He lives in Riverhead, New York.