Although the Trump Administration has indicated that U-Turn financial transactions would be eliminated, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury has yet to implement changes.
What Is A U-Turn Transaction?
“31 CFR § 515.584(d), commonly known as the “U-turn” general license, authorizes U.S. banking institutions to process transactions originating and terminating outside the United States provided that neither the originator nor the beneficiary is a person subject to U.S. jurisdiction. This means that transactions related to third-country commerce involving Cuba or Cuban nationals may be processed in U.S. dollars through the U.S. financial system via financial institutions located in the United States that serve as intermediary banks.
Additional FAQs below clarify that foreign branches or subsidiaries of U.S. banking institutions may act as the originating or beneficiary banks for such transactions.
The examples below illustrate some of the transactions and parties that may use the U-turn general license:
UPDATED NOVEMBER 8, 2017”
U.S. - Cuba Trade and Economic Council, Inc.
Established in 1994, the U.S.-Cuba Trade and Economic Council provides an efficient and sustainable educational structure in which the United States business community may access accurate, consistent, and timely information and analysis on matters and issues of interest regarding United States-Republic of Cuba commercial, economic, and political relations.