OFAC Authorizes Banks To Refuse U-Turn Transactions, Defines Self-Employed, Limits Remittances

Publication of Updated Cuban Assets Control Regulations (CACR) and Frequently Asked Questions  

The Department of the Treasury's Office of Foreign Assets Control (OFAC) is amending the Cuban Assets Control Regulations, 31 C.F.R. part 515 (CACR), to further implement portions of the President’s foreign policy toward Cuba.   

In accordance with announced changes related to remittances and certain kinds of financial transactions, OFAC is amending the CACR to: i) revise certain authorizations for remittances to Cuba to impose new requirements and limitations; and ii) revise the authorization commonly known as the “U-turn” general license to eliminate the authorization for banking institutions subject to U.S. jurisdiction to process certain kinds of financial transactions.   

The CACR amendment will be published in the Federal Register on Monday, September 9, 2019 and will take effect on October 9, 2019.  OFAC is also publishing a number of updated Frequently Asked Questions and a Fact Sheet pertaining to this regulatory amendment. 

For more information on this specific action, please visit our Recent Actions page

LINK To Frequently Asked Questions Update 

LINK To Federal Register Changes

“United States Restricts Remittances and “U-Turn” Transactions to Cuba

Today, the Department of the Treasury took action to prevent U.S. remittances to Cuba from enriching Cuban regime insiders and their families and to restrict Cuba’s access to the U.S. financial system.

Going forward, U.S. persons are no longer allowed to send family remittances to close relatives of prohibited officials of the Government of Cuba or close relatives of prohibited members of the Cuban Communist Party. U.S. persons will also no longer be allowed to send donative remittances, or remittances regardless of familial relationships, to Cuba.

In line with the President’s foreign policy on Cuba, these actions are designed to target the Cuban regime while continuing to provide vital relief to the long-suffering people of Cuba. As National Security Advisor Bolton said in April, “we know that families in the United States want to help their loved ones in Cuba, and we want Cubans to get the support they need and deserve…we know that these remittances are critical to families.” For this reason, remittances to support family members are permitted up to $1,000 per quarter per person, and remittances to private businesses, human rights groups, religious organizations, and other self-employed individuals operating in the non-state sector are authorized with no cap at this time.

The Department of the Treasury also restricted the Cuban regime’s access to the U.S. financial system by eliminating authorization for what are commonly known as “U-turn” transactions, funds transfers that originate and terminate outside the U.S. where neither the originator nor beneficiary is a person subject to U.S. jurisdiction.

The United States continues to hold Cuba accountable for its repression of the Cuban people, its interference in Venezuela, and its unconscionable support of the illegitimate former Maduro regime. Despite widespread international condemnation, Maduro continues to undermine his country’s institutions and subvert the Venezuelan people’s right to self-determination. Empowered by Cuba, he has created a humanitarian disaster that destabilizes the region.

For more information on the regulations, please refer to the following Department of the Treasury page: https://www.treasury.gov/resource-center/sanctions/Programs/Pages/cuba.aspx