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OFAC amended the Cuban Assets Control Regulations ("CACR") to (i) revise authorizations concerning remittance allowances and (ii) eliminate authorizations for so-called "U-turn" transactions.
The new amendments place restrictions on family remittances, eliminate "donative" remittances and add provisions authorizing certain remittances for independent non-governmental organizations and certain individuals in Cuba.
OFAC is amending the applicable general license, located at 31 CFR ยง 515.584(d), to eliminate the "U-turn" authorization (i.e., authorizations on transactions processed by a financial institution subject to U.S. jurisdiction, but that originate and terminate outside of the United States, and where neither the originator nor the beneficiary is a person subject to U.S. jurisdiction). Financial institutions subject to U.S. jurisdiction will be authorized to reject - but will not be required to block - such transactions.
As previously covered, in an "ongoing commitment" to implement President Donald J. Trump's Cuba policy, OFAC restricted the ability of U.S. persons to travel to Cuba, thereby "channe[ling] economic activities away from the Cuban military, intelligence and security services." The new amendments are intended to better align the authorizations with President Trump's 2017 National Security Presidential Memorandum Strengthening the Policy of the United States Towards Cuba.
OFAC published updated FAQs and a fact sheet discussing the CACR amendments, which are to take effect on October 9, 2019.
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