OFAC Cuba Sanctions FAQ: Part V – Banking

Are authorized travelers in Cuba permitted to use credit or debit cards issued by a U.S.financial institution?

Yes. Travelers are advised to check with their financial institution before traveling to Cuba todetermine whether the institution has established the necessary mechanisms for its credit or debitcards to be used in Cuba. See 31 CFR § 515.560(c)(5) and 515.584(c).

34. Can my bank refuse to allow me to use my credit or debit card in Cuba?

OFAC regulations do not require financial institutions or credit card companies to accept,maintain, or facilitate authorized financial relationships or transactions.

35. Can U.S. financial institutions permit the use of credit and debit cards they issue by, andprocess credit and debit card transactions for, third-country nationals whose travel to,from, or within Cuba may not fall within the 12 categories of authorized travel?

Yes. Section 515.584(c) of the CACR authorizes all transactions incident to the processing andpayment of credit and debit cards transactions for third-country nationals traveling to, from, orwithin Cuba

36. Are financial institutions other than banks permitted to open correspondent accounts inCuba?

Depository institutions, as defined in 31 CFR § 515.333, which include certain financialinstitutions other than banks, are permitted to open correspondent accounts at banks in Cuba. See31 CFR § 515.584(a).

37. Are Cuban banks permitted to open correspondent accounts at U.S. banks?

No. U.S. depository institutions are permitted to open correspondent accounts at Cuban bankslocated in Cuba and in third countries, and at foreign banks located in Cuba, but Cuban banks arenot generally licensed to open such accounts at U.S. banks. See note to 31 CFR § 515.584(a).

38. May foreign branches of U.S. banks open and operate accounts for newly unblocked Cubannationals in third countries?

Yes, however all funds transfers to or from such an account involving Cuba or a national of Cuba(other than an unblocked national) must be authorized or exempt.

39. In what ways can Cuban nationals lawfully present in the United States participate in theU.S. financial system?

Certain Cuban nationals who have taken up residence in the United States on a permanent basisand who meet the requirements set forth in 31 CFR § 515.505 are licensed as unblockednationals, and may participate fully in the U.S. financial system. See 31 CFR § 515.505(a)(1);(d).

Pursuant to 31 CFR § 515.571, Cuban nationals who are present in the United States in a non-immigrant status or pursuant to other non-immigrant travel authorization issued by the U.S.government, such as a non-immigrant visa, may open and maintain bank accounts for the durationof their stay in the United States in such status. Accounts that are not closed prior to thedeparture of Cuban nationals from the United States must be blocked and reported as such.Section 515.571 also authorizes such Cuban nationals to engage in normal banking transactionsinvolving foreign currency drafts, travelers’ checks, or other instruments negotiated incident totravel in the United States.

40. If a Cuban national resident in the United States has applied to become a lawful permanentresident alien of the United States, does that individual have to apply to OFAC to be treatedas an unblocked national?

No. If a Cuban national has taken up residence in the United States and has applied to become alawful permanent resident alien of the U.S. and has an adjustment of status application pending,then the Cuban national is considered unblocked and does not need to apply to OFAC to betreated as an unblocked national, provided that he or she is not a prohibited official of theGovernment of Cuba or a prohibited member of the Cuban Communist party. See 31 CFR §515.505(a)(1).

41. Should financial institutions apply for a specific license to release funds transfers oraccounts previously blocked solely because of the interest of an individual who has nowbecome an unblocked national under the recent amendment to the CACR?

The CACR include general licenses authorizing as unblocked nationals certain Cuban nationalswho have taken up permanent residence in the United States or a third country. For a completedescription of what these general licenses authorize and the restrictions that apply, please see 31CFR § 515.505(a). The CACR also include a general license authorizing banking institutions tounblock any account that had been previously blocked solely because of the interest therein ofone or more persons now licensed as unblocked nationals. For a complete description of whatthis general license authorizes and the restrictions that apply, please see 31 CFR § 515.505(b).

If your situation appears to meet the terms of these general licenses, we suggest that you contactthe U.S. financial institution blocking the funds transfer or account to request that they reviewyour situation within the context of the terms of the appropriate general license. If the terms of ageneral license apply, there is no need to seek specific authorization from OFAC, and it is OFAC’s policy not to grant specific licenses authorizing transactions for which the provisions ofan outstanding general license are applicable. See 31 C.F.R. § 501.801(a).

42. Do banking institutions need to apply for a specific license to release funds transfers oraccounts previously blocked pursuant to the CACR that are now authorized by generallicense?

If a transaction was previously blocked pursuant to the CACR at the time of the transaction, andthe CACR was later amended to allow similar transactions, the earlier transaction is notunblocked unless the CACR amendment includes a general license unblocking previouslyblocked funds. Transactions must be authorized pursuant to the CACR at the time they areprocessed. To the extent not authorized by a general license, a specific license would be requiredto release funds transfers or unblock accounts previously blocked.

43. What new transactions involving wire transfers to Cuba are authorized?OFAC has issued a new general license that authorizes U.S. depository institutions to reject fundstransfers originating and terminating outside the United States where neither the originator northe beneficiary is a person subject to U.S. jurisdiction and provided that certain prohibitedindividuals do not have an interest in the transfer. U.S. depository institutions are authorized toprocess such funds transfers where they would be authorized pursuant to the CACR if theoriginator or beneficiary were a person subject to U.S. jurisdiction. For a complete description ofwhat this general license authorizes and the restrictions that apply, please see 31 CFR §515.584(d).