Janet Yellen Secretary of the Treasury | Twitter Website
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has amended the Cuban Assets Control Regulations (CACR) to further support the Cuban people and independent private sector entrepreneurs. This move aligns with the policy announced by the Biden-Harris Administration on May 16, 2022. The regulatory amendments will take effect upon publication in the Federal Register on May 28, 2024.
The changes aim to enhance internet freedom in Cuba, support independent Cuban entrepreneurs, and expand access to financial services for Cubans. OFAC has updated its Frequently Asked Questions (FAQs) related to Cuba on its website.
Key elements of the revisions include:
**Authorized Internet-Based Services and Software**
OFAC is updating and clarifying authorized internet-based services, including social media platforms, collaboration tools, video conferencing, e-gaming, e-learning platforms, automated translation, web maps, and user authentication services. Cloud-based services such as remote data storage and virtual machines are also included.
Additionally, OFAC is expanding authorization for services related to communication items or software development that supports private sector activities in Cuba. This includes removing specific export control classification requirements. The export or reexport of Cuban-origin software and mobile applications from the United States to third countries is now permitted.
**Independent Private Sector Entrepreneurs**
The term “self-employed individual” has been replaced with “independent private sector entrepreneur,” encompassing self-employed individuals and owners or employees of small private businesses or cooperatives up to 100 employees. Prohibited Cuban officials and Communist Party members are excluded from this definition.
**U.S. Bank Accounts**
Cuban nationals who are independent private sector entrepreneurs can now open and use U.S. bank accounts remotely for authorized transactions.
**U-Turn Transactions**
Authorization for "U-turn" transactions has been reinstated after being removed in September 2019. This allows funds transfers originating and terminating outside the United States where neither party is subject to U.S. jurisdiction but involves a Cuban interest. U.S banks can process these transfers provided neither originator nor beneficiary is under U.S jurisdiction.
For more information on Cuba sanctions, see OFAC's website.
