Cuban Assets Control Regulations
| Published date | 27 October 2020 |
| Citation | 85 FR 67988 |
| Record Number | 2020-23725 |
| Section | Rules and Regulations |
| Court | Foreign Assets Control Office |
Federal Register, Volume 85 Issue 208 (Tuesday, October 27, 2020)
[Federal Register Volume 85, Number 208 (Tuesday, October 27, 2020)]
[Rules and Regulations]
[Pages 67988-67989]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23725]
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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 to deny the Cuban government access to funds in connection with
remittances to Cuba.
DATES: This rule is effective November 26, 2020.
FOR FURTHER INFORMATION CONTACT: OFAC: 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 on 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 various authorities, including the Trading With the Enemy Act (50
U.S.C. 4301-41). OFAC has amended the Regulations on numerous
occasions, including to implement the President's foreign policy toward
Cuba as set forth in National Security Presidential Memorandum-5,
``Strengthening the Policy of the United States Toward Cuba,'' signed
by the President on June 16, 2017.
Today, OFAC, in consultation with the State Department, is taking
additional action to implement the Administration's foreign policy
toward Cuba, 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.
Restrictions on Certain Remittance-Related Transactions To and From
Cuba
OFAC is amending the Regulations to remove from the scope of
certain remittance-related general authorizations any transactions
involving entities or subentities identified on the Cuba Restricted
List, as maintained by the State Department and published in the
Federal Register. This action is intended to restrict such entities'
and subentities' access to funds obtained in connection with
remittance-related activities, including in their role as
intermediaries or in their receipt of fees or commissions from
processing remittance transactions. Specifically, OFAC is amending
three general licenses in Subpart E of the Regulations to exclude from
the scope of such authorizations any transaction involving any entity
or subentity identified on the Cuba Restricted List: (i) Sec. 515.570,
which relates to remittances from persons subject to U.S. jurisdiction
or from blocked accounts; (ii) Sec. 515.572(a)(3), which relates to
the provision of remittance forwarding services; and (iii) Sec.
515.587, which relates to remittances from Cuban nationals to persons
subject to U.S. jurisdiction. OFAC is also amending Sec. 515.421,
which provides interpretative guidance with respect to transactions
ordinarily incident to a licensed transaction, to make clear that a
transaction relating to the collection, forwarding, or receipt of
remittances involving any entity or subentity
[[Page 67989]]
identified on the Cuba Restricted List is not authorized as an
ordinarily incident transaction where the terms of the general or
specific license expressly exclude any such transactions. Because the
amendments to Sec. Sec. 515.570, 515.572(a)(3), and 515.587 expressly
exclude these remittance-related transactions involving any entity or
subentity on the Cuba Restricted List, upon the effective date of this
rule, such transactions will not be authorized as ordinarily incident
to licensed transactions under those provisions. OFAC is also adding a
clarifying note in Sec. 515.209 consistent with the amended Sec.
515.421.
Public Participation
Because the amendment of the Regulations involves a foreign affairs
function, the provisions of Executive Order 12866 and 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. Because no notice of proposed rulemaking is required for
this rule, the Regulatory Flexibility Act (5 U.S.C. 601-12) 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, Banks, Banking, Blocking of
assets, Cuba, Export, Financial transactions, Remittances, Reporting
and recordkeeping requirements.
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
follows:
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); 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. 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
0
2. Amend Sec. 515.209 as follows:
0
a. Redesignate Note to Sec. 515.209 as Note 1 to Sec. 515.209.
0
b. Add new Note 2 to Sec. 515.209.
The addition reads as follows:
Sec. 515.209 Restrictions on direct financial transactions with
certain entities and subentities.
* * * * *
Note 2 to Sec. 515.209: A transaction relating to the
collection, forwarding, or receipt of remittances involving an
entity or subentity identified on the Cuba Restricted List is not
authorized as a transaction ordinarily incident to a licensed
transaction where the terms of the applicable general or specific
license expressly exclude any such transactions. See Sec. Sec.
515.570, 515.572(a)(3), and 515.587.
Subpart D--Interpretations
0
3. Amend Sec. 515.421 as follows:
0
a. In paragraph (a)(5), remove ``or'' at the end of the paragraph.
0
b. In paragraph (a)(6), remove the period at the end of the paragraph
and add in its place ``; or''.
0
c. Add paragraph (a)(7).
The addition reads as follows:
Sec. 515.421 Transactions ordinarily incident to a licensed
transaction.
(a) * * *
(7) A transaction relating to the collection, forwarding, or
receipt of remittances involving any entity or subentity identified on
the Cuba Restricted List, as published in the Federal Register and
maintained by the State Department and available at https://www.state.gov/cuba-sanctions/cuba-restricted-list/, where the terms of
the applicable general or specific license expressly exclude any such
transactions.
* * * * *
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
4. Amend Sec. 515.570 as follows:
0
a. Redesignate paragraph (j) as paragraph (k).
0
b. Add new paragraph (j).
The addition reads as follows:
Sec. 515.570 Remittances.
* * * * *
(j) Remittance transactions with entities or subentities on the
Cuba Restricted List prohibited. Nothing in paragraphs (a) through (i)
authorizes a transaction relating to the collection, forwarding, or
receipt of remittances involving any entity or subentity identified on
the Cuba Restricted List, as published in the Federal Register and
maintained by the State Department and available at https://www.state.gov/cuba-sanctions/cuba-restricted-list/.
* * * * *
0
5. In Sec. 515.572 amend paragraph (a)(3) by adding a sentence at the
end of the paragraph to read as follows:
Sec. 515.572 Provision of travel, carrier, other transportation-
related, and remittance forwarding services.
(a) * * *
(3) * * * Nothing in this paragraph (a)(3) authorizes a transaction
relating to the collection, forwarding, or receipt of remittances
involving any entity or subentity identified on the Cuba Restricted
List, as published in the Federal Register and maintained by the State
Department and available at https://www.state.gov/cuba-sanctions/cuba-restricted-list/.''
* * * * *
0
6. Amend Sec. 515.587 by adding a sentence at the end of the section
to read as follows:
Sec. 515.587 Remittances from Cuban nationals to persons subject to
U.S. jurisdiction.
* * * Nothing in this paragraph authorizes a transaction relating
to the collection, forwarding, or receipt of remittances involving any
entity or subentity identified on the Cuba Restricted List, as
published in the Federal Register and maintained by the State
Department and available at https://www.state.gov/cuba-sanctions/cuba-restricted-list/.''
* * * * *
Dated: October 22, 2020.
Andrea Gacki,
Director, Office of Foreign Assets Control.
[FR Doc. 2020-23725 Filed 10-23-20; 11:15 am]
BILLING CODE 4810-AL-P
