Trump Administration Amends Sanctions Against Cuba

On November 8, 2017, the US Treasury, Commerce, and State Departments announced amendments to the Cuban Assets Controls Regulations and the Export Administration Regulations to continue the Trump administration's policy of restricting travel to and trade with Cuba, while easing export controls on US exports to the Cuban private sector (See the Treasury announcement containing links to the amendments.) These amendments focus on banning individual people-to-people travel to Cuba and prohibiting business transactions with entities controlled by the Cuban military, intelligence, or security services. These amendments implement President Trump's June 2017 National Security Presidential Memorandum Strengthening the Policy of the United States Toward Cuba. Some of the most important changes implicated by these amendments are described below.

1. Restrictions on people-to-people exchanges and educational travel

   Individual people-to-people travel, one of the categories of travel authorized under the prior administration, is now prohibited. This category allowed American travelers to visit Cuba for informal and non-academic cultural and educational exchanges without the need to purchase often-costly guided tours. American travelers who want to engage in people-to-people travel can now do so only under the auspices of a US organization that sponsors such exchanges to promote people-to-people contact and must be accompanied by a US representative of the sponsoring organization.

   The amendments also provide for additional requirements in relation to educational travel. Americans planning to travel to Cuba to engage in educational activities may now be required to obtain a letter from a US educational institution making a number of statements as to the enrollment status of the student and the structure and duration of the program, among others. The amendments to the travel provisions will undoubtedly moderate the recent increases in US travelers to Cuba and the interactions between Cubans and individuals from the United States.

2. Prohibition on doing business with entities controlled by Cuban military, intelligence, and security services

   The State Department has published a list of entities that are controlled by the Cuban military, intelligence, and security services, the "Cuba Restricted List." US persons are now precluded by Treasury regulations from engaging in financial transactions involving listed entities, which include ministries, holding companies...