February 14, 2011 –
OFAC Issues Final Rule to Amend the Cuban Asset Control Regulations

Yesterday, the Department of Treasury’s Office of Foreign Assets Control (“OFAC”) issued a final rule (“Final Rule”) amending the Cuban Assets Control Regulations (31 CFR Part 515) (“Cuba Regulations”) to implement policy changes announced by President Obama on January 14, 2011, designed to increase people-to-people contact, support civil society in Cuba, enhance the free flow of information to, from and among, the Cuban people and help promote their independence from Cuban authorities.  The Final Rule was published in the Federal Register today.

The Final Rule amends the Cuba Regulations to provide, among others, for the following:

Travel to Cuba for Educational Activities:

A new general license authorizing accredited U.S. graduate and undergraduate degree-granting academic institutions to engage in Cuba travel-related transactions incident to certain educational activities.

An opportunity for accredited U.S. graduate or undergraduate degree-granting academic institutions to obtain a specific license to sponsor academic seminars, conferences and workshops related to Cuba and, for faculty, staff and students of such institutions to attend those events.

Travel to Cuba for Religious Activities:

A new general license authorizing religious organizations located in the United States to engage in Cuba travel-related transactions incident to religious activities.

Remittances:

A general license authorizing persons subject to U.S. jurisdiction to remit up to $500 per quarter to any Cuban national, except prohibited officials of the Government of Cuba or prohibited members of the Cuban Communist Party, to support the development of private businesses, among other purposes.

A general license authorizing unlimited remittances to religious organizations in Cuba in support of religious activities.

A general license authorizing remittances to close relatives who are students in Cuba pursuant to an educational license for the purpose of funding transactions authorized by the license under which the student is traveling.

Transactions with Cuban Nationals Who Have Taken Up Permanent Residence Outside of Cuba:

A general license allowing persons subject to U.S. jurisdiction to engage in transactions with Cuban nationals who have taken up permanent residence outside of Cuba as if such Cuban nationals where unblocked nationals.  However, all property in which such Cuban nationals have an interest that was blocked prior to the later of the date on which the individual took up permanent residence outside of Cuba or January 28, 2011, remains blocked.  The Final Rule provides examples on how to determine whether an individual Cuban national has taken up residence outside of Cuba, including documentary requirements.

U.S. financial institutions should be aware that the Final Rule expands on many of the limitations imposed by the prior Cuba Regulations.  The Final Rule goes into effect today, January 28, 2011.

To read a complete copy of the Final Rule at the OFAC website, click here.