[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