This week “people-to-people” trips to Cuba, banned since 2003, will resume pursuant to changes in the Cuba sanctions program made by the Obama administration in January of this year. However, some people to people tour organizers have had to postpone their tours due to concerns over compliance with the new laws.

The most oft-cited example of a people to people tour organizer postponing their tours is Abercrombie & Kent, who have stated that their Cuba trips are on hold until they ensure full compliance with the regulations governing such travel to Cuba. Those regulations are administered by the United States Department of the Treasury Office of Foreign Assets Control (OFAC). Many such postponements result from a recent announcement by OFAC on the issue.

In July, OFAC was pressed into issuing a travel advisory by Congresswoman Ileana Ros-Lehtinen, R-Fla., who wrote to OFAC after she said she saw advertisements for pure tourist travel to Cuba. OFAC responded by issuing a travel advisory on July 25, which stated that there are numerous restrictions on U.S. persons traveling to Cuba and all travel to the island nation must be authorized by OFAC.

Moreover, in this travel advisory, OFAC noted that all participants on people to people exchanges to Cuba would be required to maintain a full-time schedule of educational exchange activities and that such activities cannot be tourist activities.

OFAC does issue licenses on a case by case basis for educational exchanges not involving academic study pursuant to a degree program when those exchanges take place under the auspices of an organization that sponsors and organizes such programs to promote people-to-people contact. However, those organizations sponsoring and organizing such programs must be careful to ensure that the trips they are organizing are in compliance with the newly amended regulations. Due to the scrutiny OFAC has been placed under by members of Congress, it is likely that they will in turn heavily scrutinize those applying and being granted license to ensure they are in compliance with the new rules. Before advertising your people to people tour in Cuba, it is best to make sure you have the appropriate authorization from OFAC and are in full compliance with the law.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC matters. If you have any questions please contact him at 202-280-6370 or ferrari@ferrari-legal.com.