Cuba (with Turza Comment)
U.S. Treasury Department Secretary Jacob Lew issued a statement regarding recent policy changes in Cuba. In it, he explained that the steps taken jointly by the United States and Cuba will "increase travel, commerce, communications, and private business development" between the two countries and promote positive change in Cuba.
On December 17, 2014, President Obama announced that he instructed Secretary of State John Kerry to "immediately initiate discussions with Cuba on the reestablishment of diplomatic relations." As part of this effort to normalize relations, the United States will ease restrictions on banking and travel. U.S. financial institutions will be able to open corresponding accounts at Cuban financial institutions and travelers to Cuba will be permitted to use U.S. credit and debit cards. The normalization process also will extend to U.S.-owned and controlled entities in third countries. Such entities will have general licenses to "provide services to, and engage in financial transactions with Cuban individuals" in third countries. In addition, new general licenses will "unblock the accounts at U.S. banks of Cuban nationals who have relocated outside of Cuba." For more information regarding other changes to U.S.-Cuban relations, see the White House Fact Sheet.
As part of this effort to normalize relations, the United States will ease restrictions on banking and travel. For example, U.S. financial institutions will be able to open corresponding accounts at Cuban financial institutions and travelers to Cuba will be permitted to use U.S. credit and debit cards. The normalization process also will extend to U.S.-owned and controlled entities in third countries. Such entities will have general licenses to "provide services to, and engage in financial transactions with Cuban individuals" in third countries. In addition, new general licenses will "unblock the accounts at U.S. banks of Cuban nationals who have relocated outside of Cuba."
As it relates to travel restrictions, general licenses will be made available for authorized travelers under 12 existing categories. Those who fall into those 12 categories of travel "will be able to make arrangements through any service provider that complies with the U.S. Treasury's Office of Foreign Assets Control (OFAC) regulations governing travel services to Cuba, and general licenses will authorize provision of such services."
In an updated FAQ, OFAC also made clear that while it expects to amend the Cuban Assets Control Regulations, "in the coming weeks[,] . . . [n]one of the announced changes take[] effect until the new regulations are issued."
Turza Comment: President Obama's announcement of the normalization of relations with Cuba is a watershed moment in U.S.-Latin American affairs. The U.S.-Cuban economic relationship has been marked by 50-plus years of economic sanctions imposed through a web of laws and regulations, including the Trading with the Enemy Act, the Cuban Democracy Act of 1992, the Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996 (also known as the Helms-Burton Act of 1996) and OFAC's Cuban Assets Control Regulations. While the Obama Administration will be able to take significant steps on its own toward easing sanctions, Congressional action will be required to revoke the embargo fully, since certain pieces of legislation, such as the Cuban Democracy Act and the Helms-Burton Act, condition the lifting of sanctions on democratic reforms in Cuba.