On September 6, 2019, the Office of Foreign Assets Control of the US Department of the Treasury announced amendments to the Cuban Assets Control Regulations, 31 CFR part 515 (CACR). The amendments revise certain authorizations for remittances to Cuba, and terminate the use of so-called U-turn transactions.
Remittances – Family remittances authorized under Section 515.570(a) are now capped at $1,000 per quarter and cannot be sent to close family members of prohibited officials of the Cuban government or of members of the Cuban Communist Party. The authorization for donative remittances pursuant to § 515.570(b) has also been eliminated, but unlimited remittances authorized by § 515.570(g) have been expanded to include certain self-employed individuals in the non-state sector, in addition to certain non-governmental organizations and individuals.
U-turn Transactions – Previously, banking institutions subject to US jurisdiction were authorized pursuant to § 515.584(d) to process funds transfers between non-US persons originating and terminating outside of the US. This provision has been amended to remove the authorization to process such “U-turn” transactions, and replace it with the authorization to reject such transactions, rather than requiring such transactions to be blocked.
OFAC has also published updated Frequently Asked Questions pertaining to the CACR amendments, which will take effect on October 9, 2019.