The OFAC Cuba sanctions program is one of the oldest and most comprehensive U.S. economic embargoes, administered by the Office of Foreign Assets Control within the Treasury Department. Its core legal instrument is the Cuban Assets Control Regulations (CACR), codified at 31 C.F.R. Part 515, first issued in 1963 under the authority of the Trading with the Enemy Act of 1917. The regulations broadly prohibit U.S. persons—including citizens, permanent residents, entities organized under U.S. law, and their foreign branches—from engaging in transactions involving Cuba, Cuban nationals, or property in which Cuba has an interest, unless authorized by a general or specific license.
The embargo has been layered with successive statutes: the Cuban Democracy Act of 1992 (Torricelli Act) extended restrictions to foreign subsidiaries of U.S. firms, and the Cuban Liberty and Democratic Solidarity Act of 1996 (Helms-Burton Act) codified the embargo into law, meaning the President can no longer lift it unilaterally. Title III of Helms-Burton, allowing lawsuits over confiscated property, was waived for decades but activated by the Trump administration in May 2019.
Key restrictions include bans on most trade, financial transactions, and tourism; limits on remittances; and prohibitions on dealings with entities on the Cuba Restricted List maintained by the State Department (largely military- and intelligence-linked enterprises such as GAESA). OFAC publishes general licenses for narrow categories—journalism, family visits, humanitarian projects, certain telecommunications, and the 12 authorized categories of travel.
Policy has oscillated significantly. The Obama administration loosened many restrictions between 2014 and 2016 following the December 17, 2014 normalization announcement. The Trump administration reversed key elements via the June 2017 National Security Presidential Memorandum and added Cuba back to the State Sponsors of Terrorism list in January 2021. The Biden administration restored some remittance and travel flexibilities in 2022 but kept the core embargo intact. Violations carry civil penalties under IEEPA and criminal liability, with settlements frequently reaching into the hundreds of millions of dollars against banks and corporations.
Example
In 2019, OFAC fined Standard Chartered Bank as part of a broader settlement covering apparent violations of multiple sanctions programs, including transactions involving Cuban-related parties under the CACR.
Frequently asked questions
Tourism is prohibited, but OFAC authorizes 12 categories of travel—including family visits, journalism, educational activities, and support for the Cuban people—under general licenses, each with recordkeeping requirements.
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