Last Friday the United States Department of the Treasury Office of Foreign Assets Control (OFAC) announced changes to the Cuban Assets Control Regulations (CACR) which have made the CACR less restrictive. This easing of sanctions against Cuba is not surprising; ever since the Obama Administration came into office the Cuba sanctions have taken a back burner, in terms of focus and enforcement, to the Iran sanctions programs and the Foreign Narcotics Kingpin Sanctions Regulations. Moreover, the CACR has become increasingly less restrictive in terms of its prohibitions.

OFAC’s amendment to the CACR implements policy changes announced by President Obama on January 14, 2011. These changes allow for greater licensing opportunities for travel to Cuba for educational, cultural, religious, and journalistic activities. Moreover, the changes expanded OFAC’s ability to license remittances to Cuba.

OFAC has restored to the CACR a statement of specific licensing policy for “people-to-people” exchanges. This travel category provides for licenses authorizing 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. Also, OFAC increased the scope of the statement of specific licensing policy for journalistic activities in Cuba to include free-lance journalistic projects other than “articles.”

Finally, OFAC also has issued new general licenses authorizing remittances of up to $500 per quarter to any Cuban national, as well as unlimited remittances to religious organizations in Cuba in support of religious activities there. These amendments also authorize certain transactions with Cuban national individuals who have taken up permanent residence outside of Cuba.

The amendments authorizing certain transactions with Cuban nationals living outside of Cuba was particularly interesting. What the new provision actually states is that those Cubans nationals living outside of Cuba can apply to OFAC for a specific license to be unblocked. However, another subsection promulgated as part of these amendments sets forth a general license for U.S. persons to engage in transactions with Cuban nationals who now live outside of Cuba. So essentially, U.S. persons are not prohibited from engaging in transactions with Cuban nationals living outside of Cuba, however, those Cuban nationals are not unblocked for purposes of unblocking accounts that may previously have been blocked unless they apply for a specific license to be unblocked.

As exciting as this news is do not break out your Guayaberas yet. Despite the changes, the big change everyone has been hoping for has not been made. Tourist travel and all transactions incidental to such travel are still prohibited.

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.