U.S. policy regarding Cuba has been changing rapidly. Late last year, President Obama announced a number of U.S. policy changes toward Cuba, and the Office of Foreign Assets Control (OFAC) issued a final rule which became effective on January 16, 2015, amending the Cuban Assets Control Regulations, with an explanatory FAQ. Most recently, Cuba was removed from the U.S. list of state sponsors of terrorism, lifting a number of financial restrictions on the Cuban government.
Although the Cuban embargo remains in place, and other restrictions continue to apply to Cuba, there are some key takeaways for financial institutions:
Products and Services
- Authorized travelers may use U.S.-issued credit and debit cards in Cuba, but financial institutions are not required to accept or facilitate financial transactions in Cuba
- Financial institutions may open correspondent accounts at Cuban banks
Remittances to Cuban Nationals
- The limits on licensed periodic remittances to Cuban nationals have been raised from $500 to $2,000 per quarter, and banks may process authorized remittances under a general license, without being required to apply for a specific license
Cuban Nationals Present in the U.S.
- Cuban nationals who are U.S. residents on a permanent basis and meet certain requirements will be licensed by OFAC as unblocked nationals, meaning that they may participate in the U.S. financial system — in some cases, without the requirement of an application to OFAC
- Cuban nationals who are in the U.S. under a travel authorization or for other authorized non-immigration purposes may open and maintain bank accounts for the duration of their stay in the U.S. (although accounts remaining open after the Cuban national’s departure from the U.S. must be blocked and reported)
- Financial institutions may unblock accounts that had been previously blocked solely because a blocked Cuban national had an ownership interest in the account
For more information, read the Treasury’s fact sheet on the amendments to the Cuban sanctions here.