[Federal Register Volume 63, Number 95 (Monday, May 18, 1998)]
[Rules and Regulations]
[Pages 27348-27349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-13120]



[[Page 27347]]

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Part II





Department of the Treasury





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Office of Foreign Assets Control



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31 CFR Part 515



Cuban Assets Control Regulations: Family Remittances; Travel 
Remittances; Carrier Service Providers; Currency Carried by Travelers; 
Cuban Assets Control Regulations: Fully-Hosted or Fully-Sponsored 
Travel and Restrictions on Travel Transactions; Final Rules

  Federal Register / Vol. 63, No. 95 / Monday, May 18, 1998 / Rules and 
Regulations  

[[Page 27348]]



DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 515


Cuban Assets Control Regulations: Family Remittances; Travel 
Remittances; Carrier Service Providers; Currency Carried by Travelers

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendments.

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SUMMARY: Pursuant to the President's announcement of March 20, 1998, 
the Treasury Department is amending the Cuban Assets Control 
Regulations to authorize a person subject to U.S. jurisdiction to make 
remittances to a close relative in Cuba of up to $300 in any 
consecutive 3-month period. The remitter must be aged 18 years or older 
and the remittances must be for the support of the close relative or 
members of his or her household. In situations in which more than one 
close relative of the remitter resides in the same household in Cuba, 
no more than $300 in any consecutive 3-month period may be sent by the 
remitter to that household. Rules relating to non-Cuban currency 
carried by Cubans returning from the United States to Cuba are amended 
to reflect this authorization. In addition, technical changes are made 
to rules relating to provision of emigration-related remittances and 
the licensing of cargo transported to Cuba by carrier service 
providers.

EFFECTIVE DATE: May 13, 1998.

FOR FURTHER INFORMATION: Dennis P. Wood, Chief, Compliance Programs 
Division (tel.: 202/622-2490); Steven I. Pinter, Chief of Licensing 
(tel.: 202/622-2480); Charles L. Bishop, OFAC-Miami Sanctions 
Coordinator (tel.: 305/530-7177); or William B. Hoffman, Chief Counsel 
(tel.: 202/622-2410); Office of Foreign Assets Control, Department of 
the Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic Availability:

    This document is available as an electronic file on The Federal 
Bulletin Board the day of publication in the Federal Register. By 
modem, dial 202/512-1387 and type ``/GO FAC,'' or call 202/512-1530 for 
disk or paper copies. This file is available for downloading without 
charge in WordPerfect 5.1, ASCII, and Adobe AcrobatR 
readable (*.PDF) formats. For Internet access, the address for use with 
the World Wide Web (Home Page), Telnet, or FTP protocol is: 
fedbbs.access.gpo.gov. The document is also accessible for downloading 
in ASCII format without charge from Treasury's Electronic Library 
(``TEL'') in the ``Business, Trade and Labor Mall'' of the FedWorld 
bulletin board. By modem, dial 703/321-3339, and select self-expanding 
file ``T11FR00.EXE'' in TEL. For Internet access, use one of the 
following protocols: Telnet = fedworld.gov (192.239.93.3); World Wide 
Web (Home Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov 
(192.239.92.205). Additional information concerning the programs of the 
Office of Foreign Assets Control is available for downloading from the 
Office's Internet Home Page: http://www.ustreas.gov/treasury/services/
fac/fac.html, or in fax form through the Office's 24-hour fax-on-demand 
service: call 202/622-0077 using a fax machine, fax modem, or (within 
the United States) a touch-tone telephone.

Background

     On March 20, 1998, President Clinton announced that the United 
States is taking a number of steps to expand the flow of humanitarian 
assistance to Cuba and to help strengthen independent civil society and 
religious freedom in that country. These include allowing a person 
subject to U.S. jurisdiction to make remittances of specified amounts 
to close relatives in Cuba. Accordingly, the Office of Foreign Assets 
Control of the Department of the Treasury (``OFAC'') is amending the 
Cuban Assets Control Regulations, 31 CFR part 515 (the 
``Regulations''), pursuant to authority delegated to the Secretary of 
the Treasury by the President, in order to implement this measure and 
to make certain technical changes to the Regulations.
    Section 515.563(a) of the Regulations is amended to authorize a 
person subject to U.S. jurisdiction to make family remittances to a 
national of Cuba resident in Cuba who is a close relative of the 
remitter or the remitter's spouse. The same remittances are authorized 
with respect to Cuban nationals resident in the authorized trade 
territory who are not unblocked nationals pursuant to Sec. 515.505(b) 
of the Regulations. (As defined in Sec. 515.322, the term ``authorized 
trade territory'' means all countries other than the United States and 
countries subject to sanctions pursuant to 31 CFR chapter V.) The 
remitter must be aged 18 years or older, and the remittances must be 
for the support of the close relative (including any member of his or 
her household). A U.S. remitter may make payments of up to $300 in any 
consecutive 3-month period to any one close relative, and, in 
situations in which more than one close relative of the remitter 
resides in the same household, no more than $300 in any consecutive 3-
month period may be sent by the remitter to that household. Section 
515.563(d) of the Regulations defines a ``close relative'' as a 
person's spouse, child, grandchild, parent, grandparent, great 
grandparent, uncle, aunt, brother, sister, nephew, niece, first cousin, 
mother-in-law, father-in-law, son-in-law, daughter-in-law, sister-in-
law, brother-in-law, or spouse, widow or widower of any of the above.
    Remittances may be transferred through remittance forwarders 
specifically licensed by OFAC or by U.S. depository institutions 
generally licensed by OFAC pursuant to Sec. 515.566(a)(3). In addition, 
the family remittance may be carried directly on the person of the U.S. 
remitter or remitter's spouse who is engaging in authorized travel to 
Cuba, provided the traveler is aged 18 years or older, carries no more 
than $300 per trip for this purpose irrespective of the number of 
payees, and makes total remittances of no more than $300 per close 
relative (including all members of that close relative's household) in 
any consecutive 3-month period.
    The text of former Sec. 515.563(b), now Sec. 515.563(c), is revised 
to make clear that the emigration-related remittance authorized by that 
paragraph is separate from and in addition to the travel-related 
remittance authorized by Sec. 515.564(c). A similar revision is made to 
Sec. 515.564(c). In addition, Sec. 515.566(a)(2) is amended to indicate 
that certain baggage carried by carrier service providers requires 
licensing by the U.S. Department of Commerce. Finally, Sec. 515.569(d) 
is modified to provide that Cuban nationals returning to Cuba may carry 
with them currency they have received as family remittances pursuant to 
Sec. 515.563.
    Because the Regulations involve a foreign affairs function, 
Executive Order 12866 and the provisions of the Administrative 
Procedure Act (5 U.S.C. 553)(the ``APA'') requiring notice of proposed 
rulemaking, opportunity for public participation, and delay in 
effective date are inapplicable. Because 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 Regulations are being issued without prior notice and public 
comment procedure pursuant to the APA. The collections of information 
related to the Regulations are contained in 31 CFR part 501 (the 
``Reporting and

[[Page 27349]]

Procedures Regulations''). Pursuant to the Paperwork Reduction Act of 
1995 (44 U.S.C. 3507), those collections of information have been 
approved by the Office of Management and Budget under control number 
1505-0164. 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, Air carriers, Banks, 
banking, Blocking of assets, Cuba, Currency, Estates, Exports, Foreign 
investment in the United States, Foreign trade, Imports, Informational 
materials, Penalties, Publications, Reporting and recordkeeping 
requirements, Securities, Shipping, Specially designated nationals, 
Terrorism, Travel restrictions, Trusts and trustees, Vessels.

    For the reasons set forth in the preamble, 31 CFR part 515 is 
amended as set forth below:

PART 515--CUBAN ASSETS CONTROL REGULATIONS

    1. The authority citation for part 515 is revised to read as 
follows:

    Authority: 18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010; 31 
U.S.C. 321(b); 50 U.S.C. App. 1-44; Pub. L. 101-410, 104 Stat. 890 
(28 U.S.C. 2461 note); E.O. 9193, 7 FR 5205, 3 CFR, 1938-1943 Comp., 
p. 1147; E.O. 9989, 13 FR 4891, 3 CFR, 1943-48 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 E--Licenses, Authorizations, and Statements of Licensing 
Policy

    2. Section 515.563 is revised to read as follows:


Sec. 515.563  Family remittances to nationals of Cuba.

    (a) A person subject to the jurisdiction of the United States may 
make remittances to a national of Cuba resident in Cuba or in the 
authorized trade territory who is a close relative of the remitter or 
of the remitter's spouse, provided the U.S. remitter is 18 years of age 
or older and payments are made from unblocked sources for the support 
of the close relative (including any member of his or her household). 
In any consecutive 3-month period, the maximum amount a remitter may 
send to a close relative of the remitter or the remitter's spouse 
pursuant to this section is the lesser of:
    (1) $300 to the close relative in Cuba or the authorized trade 
territory; or
    (2) $300 to the household of the close relative in Cuba or the 
authorized trade territory, regardless of the number of close relatives 
comprising the household.
    Note to paragraph (a). The maximum amounts set forth in 
paragraph (a) of this section do not apply to family remittances to 
a Cuban national who has been specifically licensed as an unblocked 
national pursuant to Sec. 515.505(b), as family remittances to 
unblocked persons do not require separate authorization.
    (b) A remitter or remitter's spouse who is 18 years of age or older 
and who is engaged in authorized travel to Cuba may carry on his or her 
person no more than $300 in total family remittances, regardless of the 
number of eligible payees in Cuba, provided the remitter's family 
remittances will not exceed the maximum amount set forth in paragraph 
(a) of this section for any payee within the past 3 months.
    (c) In addition to travel-related remittances authorized pursuant 
to Sec. 515.564(c), remittances to any close relative of the remitter 
or of the remitter's spouse who is a national of Cuba or who is 
resident in Cuba are authorized for the purpose of enabling the payee 
to emigrate from Cuba to the United States, in an amount not exceeding 
$500, to be made only once to any payee, provided that the payee is a 
resident of and within Cuba at the time the payment is made.
    (d) The term close relative used with respect to any person means 
such person's spouse, child, grandchild, parent, grandparent, great 
grandparent, uncle, aunt, brother, sister, nephew, niece, first cousin, 
mother-in-law, father-in-law, son-in-law, daughter-in-law, sister-in-
law, brother-in-law, or spouse, widow or widower of any of the 
foregoing.
    3. Section 515.564 is amended by revising the first sentence of 
paragraph (c) to read as follows:


Sec. 515.564  Certain transactions incident to travel to, from and 
within the United States by certain Cuban nationals.

* * * * *
    (c) Travel-related remittances by persons subject to U.S. 
jurisdiction to Cuba or a Cuban national, directly or indirectly, for 
transactions on behalf of a Cuban national, are authorized pursuant to 
paragraph (a) of this section only when made for the purpose of 
enabling the payee to emigrate from Cuba to the United States, 
including for the purchase of airline tickets and payment of visa fees 
or other travel-related fees. * * *
* * * * *
    4. Section 515.566 is amended by revising the last sentence of 
paragraph (a)(2) to read as follows:


Sec. 515.566  Authorization for transactions incident to the provision 
of travel service, carrier service, and family remittance forwarding 
service.

    (a)(1) * * *
    (2) * * * Carriage to or from Cuba of any merchandise, cargo or 
gifts, other than those permitted to individual travelers as 
accompanied baggage, must also be authorized by licenses issued by the 
U.S. Department of Commerce.
* * * * *
    5. Section 515.569 is amended by revising paragraph (d) to read as 
follows:


Sec. 515.569  Currency carried by travelers to Cuba.

* * * * *
    (d) A Cuban national returning directly from the United States to 
Cuba may carry non-Cuban currency only in the amount of U.S. currency 
or third-country currency brought into the United States by the 
traveler and registered with the U.S. Customs Service upon entry, plus 
up to $300 in funds received as family remittances by the Cuban 
national during his or her stay in the United States.
* * * * *

    Dated: May 4, 1998.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: May 11, 1998.
James E. Johnson,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 98-13120 Filed 5-13-98; 2:31 pm]
BILLING CODE 4810-25-F