Although the United States Department of Treasury Office of Foreign Assets Control (“OFAC”) issued guidance on the easing of travel restrictions and trade provisions well over a month ago, the news is abuzz today about Obama lifting the sanctions against Cuba.

What has occurred is that OFAC on March 11, 2009 issued a general license to allow U.S. persons to visit close relatives in Cuba once per year. OFAC also stated that additional trips to Cuba could be made on a case by case basis for individuals applying for a specific license to travel there. Close relatives are defined as being those relatives who are related by blood, marriage or adoption and are not more than three generations removed from the U.S. person. In other words, if you do not have relatives to visit in Cuba then now is not the time to unpack your Guayabera and make travel arrangements.

There is also talk in the news today about the lifting of the trade related embargo. What actually occurred is that Congress has directed the Department of Treasury to promulgate regulations, by general license, authorizing travel related transactions for travel to, or from, or within Cuba for the marketing and sale of agricultural and medical goods. Congress took this action in the Omnibus Appropriations Act of 2009. However, OFAC has still not issued this license, therefore such transactions are still only currently permissible by specific license.

Its easy to get swept up in the moment and buy into the media frenzy surrounding the easing of sanctions against Cuba. However, the Cuba Sanctions Regulations still exist and will still be enforced. Therefore, it is important that individuals and businesses seeking to conduct transactions with Cuba be aware of the regulations and do their utmost to comply with them.

What the easing of these regulations may portend is a transformation of OFAC under the Obama Administration. I have commented in the past that OFAC has been issuing less and less penalities and designations (one reason why my postings have been limited as of late). Now with the easing of restrictions against Cuba and the publication of the CFR Part relating to the Cote d’Ivoire Sanctions Regulations and the new CFR Part pertaining to the Blocking Property of Weapons of Mass Destruction Proliferators and their Supportes, it seems that the current administration is focusing on revamping OFAC, rather than penalizing and designating.

It will be interesting to watch over the next year, especially with a possible open dialogue between the United States and Iran becoming more realistic, how the Iranian Transactions Regulations will be effected.

The easing of restrictions on Cuba may be a sign of things to come for U.S. sanctions programs or it may just be that the United States after 50 years of embargo against the island nation realizes that it just doesn’t work and now its time to try something new. Either way, OFAC looks to be changing and I, for one, like it.

For more information on the Cuba General License discussed on this blog please see the Cuba General License.

The Cuba Sanctions Regulations can at times be difficult to navigate. If you intend to provide services to entities operating under the jurisdiction of the Government of Cuba, or plan on traveling to Cuba, I strongly suggest seeking out an attorney to advise you on any liability you may face in engaging in such actions.

If you feel that you may have violated the Cuba Sanctions Regulations please contact the author at 202-467-8327 or by email at ferrari@ferrari-legal.com