The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced amendments to the Cuban Assets Control Regulations (CACR) on May 28, 2024, aimed at promoting internet freedom, supporting independent Cuban private sector entrepreneurs, and expanding access to financial services for Cuban nationals. These changes include updated definitions, authorization of U.S. bank accounts for Cuban entrepreneurs, reinstatement of «U-turn» transactions, and a new email reporting requirement for telecom-related transactions
📌OFAC’s Grand Announcement: On May 28, 2024, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) decided to sprinkle some generosity by amending the Cuban Assets Control Regulations (CACR). These changes are supposedly aimed at promoting internet freedom in Cuba and supporting independent Cuban private sector entrepreneurs. How noble!
📌Internet-Based Services: OFAC has graciously expanded the list of authorized internet-based services. Now, Cubans can enjoy social media platforms, video conferencing, e-gaming, user authentication, and instant translation services. Because nothing says freedom like more social media and video games, right?
📌Independent Private Sector Entrepreneurs: The term «self-employed individual» has been replaced with «independent private sector entrepreneur.» This new definition includes self-employed individuals, private cooperatives, and small private businesses. But don’t worry, prohibited officials of the Cuban Government and Communist Party members are excluded. How considerate!
📌U.S. Bank Accounts: Cuban entrepreneurs can now open and use U.S. bank accounts, including online payment platforms, for authorized transactions. However, if you’re a Cuban business owned by a government official or Communist Party member, tough luck!
📌U-Turn Transactions: OFAC has reinstated the authorization for «U-turn» transactions. This means U.S. banks can process fund transfers that start and end outside the U.S., as long as neither the originator nor the beneficiary is subject to U.S. jurisdiction. Because who doesn’t love a good U-turn?
📌Email Reporting Requirement: OFAC is moving into the 21st century by replacing its fax and paper mail reporting process with email reports for telecom-related transactions. Welcome to the digital age, OFAC!
📌Biden Administration’s Efforts: These amendments are part of the Biden Administration’s ongoing efforts to alleviate economic pressures on Cuba’s private sector while maintaining tensions with the Cuban Government. It’s a delicate balancing act, after all.
📌Historical Context: This move is reminiscent of the Obama Administration’s 2015 policies that eased trade restrictions on Cuba, which were partly reversed by the Trump Administration in 2017. It’s like a political seesaw!