Significant Regulatory Changes To U.S./Cuba Sanctions To Benefit U.S. Telecommunications, Health Care, And Agriculture Companies

The Department of the Treasury's Office of Foreign Assets

Control ("OFAC") this afternoon announced various

amendments to the amending the Cuban Assets Control Regulations

("CACR"), implementing a previously announced policy

initiative by President Barack Obama.

These amendments to the CACR change the rules in three major

areas, family visits, family remittances, and

telecommunications.

Family Travel Restrictions Eased

OFAC has issued a general license authorizing travel-related

transactions for visits to "close relatives" (close

relatives include, for example, aunts, uncles, cousins, and second

cousins) who are nationals of Cuba. There is no limit on the

frequency or duration such visits to "close relatives."

OFAC has issued a general license easing restrictions on

remittances (including from inherited blocked accounts) to

"close relatives" who are nationals of Cuba.

Significant Changes for Travel Related to Agriculture or

Medical Sales

The new TSRA general license authorizes, with certain

conditions, "travel-related transactions that are directly

incident to the commercial marketing, sales negotiation,

accompanied delivery, or servicing in Cuba of agricultural

commodities, medicine, or medical devices that appear consistent

with the Department of Commerce's export or reexport licensing

policy."

An individual may rely on this general license "if he or

she is regularly employed by a producer or distributor of the

agricultural or medical items or by an entity duly appointed to

represent such a producer or distributor, and if that

traveler's schedule of activities is consistent with a full

work schedule. Under the new general license, written reports must

be submitted to OFAC at least 14 days before departure for Cuba and

within 14 days of return."

Significant Changes for Telecommunications Industry

Under the new regulations, "Persons subject to U.S.

jurisdiction may contract with and pay non-Cuban telecommunications

services providers to provide services to particular individuals in

Cuba (other than prohibited officials of the Government of Cuba or

prohibited members of the Cuban Communist Party, as defined in the

CACR). For example, an individual in the United States may contract

with and pay a U.S. or third-country telecommunications company to

provide cellular telephone service for a phone owned and used by

that individual's friend in Cuba. Moreover, a U.S.

telecommunications services provider may enter into a contract with

a particular...