June 13, 2019

US travel company settles apparent Cuban Assets Control violations

The Office of Foreign Assets Control of the US Department of the Treasury has settled the potential civil liability of an individual and a company, Cubasphere Inc. for apparent violations of the Cuban Assets Control Regulations, 31 CFR part 515 (CACR).  According to OFAC, Cubasphere and the related individual dealt in property in which Cuba or Cuban nationals had an interest, in violation of § 515.201(b)(1) of the CACR, by providing unauthorized Cuba travel services to 104 people, and urging clients to conceal their unauthorized travel and sightseeing activities in Cuba. OFAC found that the individual’s apparent violations were willful, knowing, and not voluntarily disclosed, Cubasphere did not maintain adequate sanctions compliance procedures, and neither it nor the individual have taken remedial action in response to the apparent violations.  However, in light of the company’s small size, its post-investigation cooperation, and its prior record of no sanctions violations, the parties agreed to a settlement amount of $40,320.

OFAC Enforcement Information | OFAC news release