Cuban Assets Control Regulations
| Published date | 09 September 2019 |
| Citation | 84 FR 47121 |
| Record Number | 2019-19411 |
| Section | Rules and Regulations |
| Court | Foreign Assets Control Office |
Federal Register, Volume 84 Issue 174 (Monday, September 9, 2019)
[Federal Register Volume 84, Number 174 (Monday, September 9, 2019)]
[Rules and Regulations]
[Pages 47121-47123]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19411]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 515
Cuban Assets Control Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is amending the Cuban Assets Control Regulations to
further implement portions of the President's foreign policy toward
Cuba. This rule amends and, in one case, removes certain authorizations
for remittances to Cuba, and the rule also amends the general license
relating to ``U-turn'' financial transactions to eliminate the
authorization to process such transactions and instead only allow the
rejection of such transactions.
DATES: Effective: October 9, 2019.
FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's
Office of Foreign Assets Control: Assistant Director for Licensing,
202-622-2480, Assistant Director for Regulatory Affairs, 202-622-4855,
or Assistant Director for Sanctions Compliance & Evaluation, 202-622-
2490.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document and additional information concerning OFAC are
available from OFAC's website (www.treasury.gov/ofac).
Background
The Department of the Treasury issued the Cuban Assets Control
Regulations, 31 CFR part 515 (the ``Regulations''), on July 8, 1963,
under the Trading With the Enemy Act (50 U.S.C. 4301-41). OFAC has
amended the Regulations on numerous occasions. In particular, on
November 9, 2017, OFAC, the Department of Commerce's Bureau of Industry
and Security (Commerce), and the Department of State (State) took
coordinated actions to implement National Security Presidential
Memorandum-5, ``Strengthening the Policy of the United States Toward
Cuba,'' signed by the President on June 16, 2017 (NSPM-5). Most
recently, effective June 5, 2019, OFAC further restricted non-family
[[Page 47122]]
travel by removing an authorization for group people-to-people
educational travel (84 FR 25992). OFAC took the June 5, 2019 action in
order to further implement NSPM-5 and the President's foreign policy
toward Cuba, as announced in an April 17, 2019 foreign policy address
(April 2019 Address).
The April 2019 Address also announced forthcoming regulatory
changes to impose new limits on remittances and to end the use of ``U-
turn'' transactions. Today, OFAC, in consultation with State, is taking
additional action to implement those announced changes, as set forth in
more detail below. This rule provides for a 30-day implementation
period before it is effective in order to allow for technical
implementation of these additional restrictions.
Remittances
In accordance with the April 2019 Address, OFAC is amending several
authorizations related to remittances set forth in Sec. 515.570. OFAC
is amending Sec. 515.570(a), which authorizes family remittances, to
place a cap of $1,000 as the maximum amount that one remitter can send
per quarter to one Cuban national as a family remittance. Section
515.570(a) provides that the recipient of family remittances may not be
a prohibited official of the Government of Cuba, as defined in Sec.
515.337, or a prohibited member of the Cuban Communist Party, as
defined in Sec. 515.338. OFAC is now amending Sec. 515.570(a) to
prohibit remitters from sending remittances to close family members, as
defined in Sec. 515.339, of prohibited officials of the Government of
Cuba or prohibited members of the Cuban Communist Party. OFAC also is
making a conforming change in Sec. 515.570(f), which authorizes
certain remittances from blocked sources.
In further accordance with the policy to limit remittances, OFAC is
eliminating the authorization in Sec. 515.570(b) for donative
remittances. In light of the removal of this authorization, OFAC also
is making a conforming change by removing and reserving the unblocking
authorization in paragraph (h) for previously blocked remittances that
would have been authorized by paragraph (b). At the same time, in light
of NSPM-5's policy to encourage the growth of a Cuban private sector
independent of government control, OFAC is amending Sec. 515.570(g),
which authorizes unlimited remittances to certain individuals and
independent non-governmental organizations in Cuba, to add a provision
to authorize unlimited remittances to certain additional self-employed
individuals. OFAC is adding a definition for qualifying self-employed
individuals in Sec. 515.340.
Ending ``U-turn'' Transactions
OFAC previously authorized, pursuant to Sec. 515.584(d), any
banking institution, as defined in Sec. 515.314, that is a person
subject to U.S. jurisdiction, to process funds transfers originating
and terminating outside the United States, provided that neither the
originator nor the beneficiary is a person subject to U.S.
jurisdiction. The April 2019 Address announced that the Department of
the Treasury would implement changes to eliminate the authorization for
banking institutions subject to U.S. jurisdiction to process ``U-turn''
transactions found in Sec. 515.584(d). In accordance with that policy,
OFAC is amending Sec. 515.584(d) which previously authorized such
transactions, to remove the authorization to process such transactions
and to replace it with an authorization to reject such transactions.
OFAC is making conforming changes by removing references to Sec.
515.584(d) in the Note to Sec. 515.209 and Sec. 515.584(e).
Public Participation
Because the amendments of the Regulations involve a foreign affairs
function, Executive Order 12866 and the provisions of the
Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date, as well as the provisions of Executive Order 13771, are
inapplicable. As no notice of proposed rulemaking is required for this
rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply.
Paperwork Reduction Act
The collections of information related to the Regulations are
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties
Regulations'') and Sec. 515.572 of this part. Pursuant to the
Paperwork Reduction Act of 1995 (44 U.S.C. 3507), those collections of
information are covered by the Office of Management and Budget under
control numbers 1505-0164, 1505-0167, and 1505-0168. An agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless the collection of information displays
a valid control number.
List of Subjects in 31 CFR Part 515
Administrative practice and procedure, Banking, Blocking of assets,
Cuba, Financial transactions, Remittances, Reporting and recordkeeping
requirements, Travel restrictions, U-turn transactions.
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR part 515 as
set forth below:
PART 515--CUBAN ASSETS CONTROL REGULATIONS
0
1. The authority citation for part 515 continues to read as follows:
Authority: 22 U.S.C. 2370(a), 6001-6010, 7201-7211; 31 U.S.C.
321(b); 50 U.S.C. 4301-4341; Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); Pub. L. 104-114, 110 Stat. 785 (22 U.S.C. 6021-
6091); Pub. L. 105-277, 112 Stat. 2681; Pub. L. 111-8, 123 Stat.
524; Pub. L. 111-117, 123 Stat. 3034; E.O. 9193, 7 FR 5205, 3 CFR,
1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3 CFR, 1943-1948
Comp., p. 748; Proc. 3447, 27 FR 1085, 3 CFR, 1959-1963 Comp., p.
157; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 614.
Subpart B--Prohibitions
Sec. 515.209 [Amended]
0
2. In the Note to Sec. 515.209, remove the text ``Sec. 515.584(d)
relating to funds transfers or''.
Subpart C--Definitions
0
3. Add Sec. 515.340 to read as follows:
Sec. 515.340 Self-employed individual.
The term self-employed individual means a Cuban national who is one
or more of the following:
(a) An owner or employee of a small private business or a sole
proprietorship, including restaurants (paladares), taxis, and bed-and-
breakfasts (casas particulares);
(b) An independent contractor or consultant;
(c) A small farmer who owns his or her own land; or
(d) A small usufruct farmer who cultivates state-owned land to sell
products on the open market.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
4. Amend Sec. 515.570 by:
0
a. Redesignating paragraphs (a)(1) through (3) as paragraphs (a)(2)
through (4);
0
b. Adding new paragraph (a)(1);
0
c. Revising newly redesignated paragraph (a)(3);
0
d. Removing and reserving paragraph (b);
0
e. Revising paragraphs (f) introductory text and (g)(3); and
0
f. Removing and reserving paragraph (h).
The revisions and additions read as follows:
[[Page 47123]]
Sec. 515.570 Remittances.
(a) * * *
(1) The remitter's total remittances pursuant to paragraph (a) of
this section to any one Cuban national do not exceed $1,000 in any
consecutive three-month period;
* * * * *
(3) The recipient is not a prohibited official of the Government of
Cuba, as defined in Sec. 515.337, a prohibited member of the Cuban
Communist Party, as defined in Sec. 515.338, a close relative, as
defined in Sec. 515.339, of a prohibited official of the Government of
Cuba, or a close relative of a prohibited member of the Cuban Communist
Party; and
* * * * *
(f) Certain remittances from blocked sources authorized. Provided
the recipient is not a prohibited official of the Government of Cuba,
as defined in Sec. 515.337, a prohibited member of the Cuban Communist
Party, as defined in Sec. 515.338, a close relative, as defined in
Sec. 515.339, of a prohibited official of the Government of Cuba, or a
close relative of a prohibited member of the Cuban Communist Party,
certain remittances from blocked sources are authorized as follows:
* * * * *
(g) * * *
(3) To support the development of private businesses, and operation
of economic activity in the non-state sector by self-employed
individuals, as defined in Sec. 515.340.
* * * * *
0
5. Amend Sec. 515.584 as follows:
0
a. Revise paragraph (d); and
0
b. In the second sentence of paragraph (e), remove the text ``paragraph
(d) of this section, Sec. 515.562(b),'' and add the text ``Sec.
515.562(b)'' in its place.
The revision reads as follows:
Sec. 515.584 Certain financial transactions involving Cuba.
* * * * *
(d) Funds transfers. Any banking institution, as defined in Sec.
515.314, that is a person subject to U.S. jurisdiction is authorized to
reject funds transfers originating and terminating outside the United
States, provided that neither the originator nor the beneficiary is a
person subject to U.S. jurisdiction.
* * * * *
Dated: September 4, 2019.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2019-19411 Filed 9-6-19; 8:45 am]
BILLING CODE 4810-AL-P
