OFAC Announces New Cuban Restrictions, Prohibitions

The Office of Foreign Assets Control announced new Cuba sanctions and restrictions to limit the use of certain licenses and prohibit a range of activities in Cuba. The sanctions include restrictions on lodging in Cuba, professional research and “public performances.” The changes, outlined in a final rule released Sept. 23, are effective Sept. 24.

The rule introduces a new prohibition that blocks any person subject to U.S. jurisdiction from participating in lodging activities in Cuba, including paying for lodging and making reservations for lodging on behalf of a third party. The prohibition will apply only to certain properties designated on the State Department’s Cuba Prohibited Accommodations List. The Cuban government or “certain well-connected insiders” control the 433 properties listed, the State Department said.

OFAC eliminated a general license authorizing attendance at professional meetings or conferences in Cuba and said specific licenses may be issued case by case for transactions related to certain professional research or meetings. OFAC also removed its authorization for public performances, clinics, workshops and athletic or nonathletic competitions but may issue specific licenses on a case-by-case basis for related transactions.

OFAC also made edits to “interpretive guidance” in the Cuban Assets Control Regulations to reflect the new prohibitions by adding a provision to exclude lodging activities from the scope of the interpretative provision. OFAC also amended several sections of the CACR to reflect the changes, including provisions allowing the repair of items previously exported or reexported to Cuba. The agency also amended sections describing transactions related to “informational materials,” travel, family visits, “journalistic activity,” professional research and meetings, educational activities, religious activities, certain “public performances,” “remittance forwarding services” and humanitarian projects.

The rule also restricts U.S. imports of Cuban alcohol and tobacco products by revising four import-related authorizations in the CACR. The authorizations involve imports in “accompanied baggage” for personal use; by non-U.S. citizens or residents “not in commercial quantities” and not for resale; in accompanied baggage by or on behalf of a Cuban national “who is present” in the U.S.; and as accompanied baggage of Cuban origin and purchased in a third country for personal use. Importers will no longer be able to use the authorizations for Cuban alcohol and tobacco products without specific licenses.