[Federal Register Volume 89, Number 104 (Wednesday, May 29, 2024)]
[Rules and Regulations]
[Pages 46323-46325]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-11618]


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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 (the 
``Regulations'') to further implement elements of the policy announced 
by the Administration on May 16, 2022, to increase support for the 
Cuban people. Among other things, these amendments increase support for 
internet freedom for the Cuban people and independent Cuban private 
sector entrepreneurs by expanding authorizations for internet-based 
services and a range of financial transactions. These amendments also 
include several additional or updated cross references and one updated 
definition.

DATES: This rule is effective May 29, 2024.

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.treas.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. As with prior 
amendments, OFAC has ensured that these amendments are consistent with 
the Cuban Liberty and Democracy Solidarity (LIBERTAD) Act of 1996, 22 
U.S.C. 6021-6091 and other applicable authorities. Most recently, on 
June 9, 2022, OFAC amended the Regulations to implement certain policy 
measures announced by the Administration on May 16, 2022 to increase 
support for the Cuban people. In this document, OFAC, in consultation 
with the Department of State, is taking additional actions to further 
implement the Administration's Cuba policy measures announced on May 
16, 2022, as set forth in more detail below.
    Internet-Based Services. OFAC is amending Sec.  515.578(a)(1) to 
provide additional examples of authorized services incident to the 
exchange of communications over the internet and to include and expand 
certain services to support the exchange of such communications. For 
example, OFAC's amendment to Sec.  515.578(a)(1) clarifies that cloud-
based services may be exported to Cuba to support the exchange of 
communications over the internet. OFAC is amending Sec.  515.578(a)(2) 
to expand the authorization for services (including training) to 
install, repair, or replace certain items, including by removing the 
requirement that referenced items fall within specific export control 
classification parameters. OFAC is retaining the requirement in Sec.  
515.578(a)(2) that for services (including training) related to any 
items subject to the Export Administration Regulations, 15 CFR parts 
730 through 774, such items must be licensed or otherwise authorized by 
the Department of Commerce for exportation or reexportation to Cuba. 
OFAC is also amending Sec.  515.578(d) and (e) to authorize the export 
or reexport of Cuban-origin software and mobile applications, 
respectively, from the United States to third countries.
    Definition of Independent Private Sector Entrepreneurs. OFAC is 
amending Sec.  515.340 by replacing the term ``self-employed 
individual'' with the term ``independent private sector entrepreneur'' 
and limiting the term to exclude a Cuban national who is a prohibited 
official of the Government of Cuba, as defined in Sec.  515.337, or a 
member of the Cuban Communist Party, as defined in Sec.  515.338. The 
term continues to include self-employed individuals (cuentapropistas), 
such as owners or employees of a private business or a sole 
proprietorship, but the amended definition now also includes 
cooperatives and other private businesses wholly owned by or consisting 
solely of such individuals. OFAC is also amending Sec.  515.340 to 
specify that private businesses or sole proprietorships of up to 100 
employees are covered by the term ``independent private sector 
entrepreneur.'' OFAC is also replacing the term ``independent Cuban 
entrepreneurs'' with ``independent private sector entrepreneurs'' in 
Sec.  515.582, replacing the term ``self-employed individuals'' with 
``independent private sector entrepreneurs'' and adding farms of up to 
100 employees as an example of

[[Page 46324]]

private businesses in Sec.  515.570, and making conforming changes to 
Sec.  515.421.
    U.S. Bank Accounts for Independent Private Sector Entrepreneurs. 
OFAC is amending Sec.  515.584(h) to authorize independent private 
sector entrepreneurs in Cuba, as defined in Sec.  515.340, to maintain 
and use a U.S. bank account to conduct authorized or exempt 
transactions.
    ``U-Turn'' Transactions. OFAC is amending Sec.  515.584(d) to 
reinstate an authorization for ``U-turn'' transactions to help the 
Cuban people, including independent private sector entrepreneurs, by 
facilitating remittances and payments for authorized transactions in 
the Cuban private sector. This amendment allows any banking 
institution, as defined in Sec.  515.314, that is a person subject to 
U.S. jurisdiction to process funds transfers in which Cuba or a Cuban 
national has an interest if the funds transfers originate and terminate 
outside the United States, provided that neither the originator nor the 
beneficiary is a person subject to U.S. jurisdiction. Transactions 
through the U.S. financial system that do not meet these criteria, 
including all transactions where the originator or beneficiary is a 
person subject to U.S. jurisdiction, remain prohibited unless otherwise 
authorized or exempt under the Regulations. OFAC is also amending Sec.  
515.584(e) to authorize the unblocking and return of any transfer that 
would have been authorized pursuant to the reinstated authorization. 
OFAC is making a conforming change by adding a reference to Sec.  
515.584(d) in the note to Sec.  515.209.
    Telecommunications-Related Transactions Reporting Requirements. 
OFAC is amending Sec.  515.542(g) to replace the current fax or mail 
reporting requirement with a requirement to email reports to 
[email protected]. OFAC is also adding a sentence to Sec.  
515.542(g) to clarify that the reporting requirement in paragraph (g) 
applies to entities engaging in transactions to provide 
telecommunication services pursuant to paragraph (b), (c), or (d), and 
not banking institutions, as defined in Sec.  515.314, processing 
payments on behalf of such providers.
    Educational Activities. OFAC is amending Sec.  515.565(a) to 
correct a typographical error in the June 9, 2022 amendment to the 
Regulations and restore language in the general license in Sec.  
515.565(a) authorizing transactions beyond the travel-related 
transactions set forth in Sec.  515.560(c).

Public Participation

    Because the Regulations involve a foreign affairs function, the 
provisions of Executive Order 12866 of September 30, 1993, ``Regulatory 
Planning and Review'' (58 FR 51735, October 4, 1993), and the 
Administrative Procedure Act (5 U.S.C. 553) 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 collections of information related to the Regulations are 
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties 
Regulations'') and Sec.  515.572. 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 
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, Credit, Foreign trade, internet, Penalties, Reporting and 
recordkeeping requirements, Sanctions, Services.

    For the reasons set forth in the preamble, OFAC 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


Sec.  515.209  [Amended]

0
2. Amend Sec.  515.209 in note 1 to the section by adding ``Sec.  
515.584(d) relating to funds transfers or'' before the text ``Sec.  
515.584(g)''.

Subpart C--General Definitions

0
3. Amend Sec.  515.340 by:
0
a. Revising the section heading;
0
b. In the introductory text, removing ``self-employed individual means 
a Cuban national who is'' and adding in its place ``independent private 
sector entrepreneur means a Cuban national who is not 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, and is'';
0
c. Revising and republishing paragraph (a);
0
d. In paragraph (c), removing the word ``or'' after the semicolon;
0
e. In paragraph (d), removing the period and adding in its place ``; 
or''; and
0
f. Adding paragraph (e).
    The revisions and addition read as follows:


Sec.  515.340  Independent private sector entrepreneur.

* * * * *
    (a) An owner, including a self-employed individual 
(cuentapropista), or employee of a small private business entity, 
private cooperative, or a sole proprietorship located in Cuba, in each 
case of up to 100 employees;
* * * * *
    (e) A private cooperative or small private business entity located 
in Cuba of up to 100 employees that is owned only by individuals 
described in paragraphs (a) through (d) of this section.

Subpart D--Interpretations


Sec.  515.421  [Amended]

0
4. Amend Sec.  515.421 in paragraph (b)(2) by removing ``Cuban'' and 
adding in its place ``private sector''.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
5. Amend Sec.  515.542 in paragraph (g) by:
0
a. Removing ``faxed to 202/622-6931 or mailed to the Office of Foreign 
Assets Control, Attn: Regulatory Affairs Division, 1500 Pennsylvania 
Avenue NW, Annex, Washington, DC 20220'' and adding in its place 
``emailed to [email protected]''; and
0
b. Adding a sentence at the end of the paragraph.
    The addition reads as follows:


Sec.  515.542  Mail and telecommunications-related transactions.

* * * * *
    (g) * * * The reporting requirement in this paragraph (g) applies 
only to the

[[Page 46325]]

non-banking institution entity subject to U.S. jurisdiction relying 
upon paragraph (b), (c), or (d) of this section to provide 
telecommunications services.
* * * * *


Sec.  515.565  [Amended]

0
6. Amend Sec.  515.565 in paragraph (a) introductory text by adding 
``transactions, including'' after ``engage in''.


Sec.  515.570  [Amended]

0
7. Amend Sec.  515.570 in paragraph (g)(3) by:
0
a. Adding ``in Cuba, including farms of up to 100 employees'' after 
``businesses''; and
0
b. Removing ``by self-employed individuals'' and adding in its place 
``of Cuba by independent private sector entrepreneurs''.

0
8. Amend Sec.  515.578 by:
0
a. Revising paragraphs (a)(1) and (2);
0
b. In paragraph (a)(3):
0
i. Removing ``The'' at the beginning of the sentence and add in its 
place ``To the extent not authorized by Sec.  515.533 or Sec.  515.560, 
the''; and
0
ii. Removing ``(2)(i)-(iii)'' and add in its place ``(a)(2)''.
0
c. Redesignating Note to Sec.  515.578(b)(2) as Note 3 to Sec.  
515.578(b)(2);
0
d. Revising paragraphs (d) and (e); and
0
e. Redesignating the note at the end of the section as Note 5 to Sec.  
515.578.
    The revisions read as follows:


Sec.  515.578  Exportation, reexportation, and importation of certain 
internet-based services; importation of software.

    (a) * * *
    (1) Certain internet-based services. The exportation or 
reexportation, directly or indirectly, from the United States or by a 
person subject to U.S. jurisdiction to Cuba of the following services:
    (i) Services incident to the exchange of communications over the 
internet, such as instant messaging, chat and email, social networking, 
sharing of photos and movies, web browsing, blogging, web hosting 
provided that it is not for the promotion of tourism, domain name 
registration services, social media platforms, collaboration platforms, 
video conferencing, e-gaming and e-learning platforms, automated 
translation, web maps, and user authentication services; and
    (ii) Services to support the exchange of communications over the 
internet, such as software design, business consulting, information 
technology management services, and cloud-based services, to support 
services described in paragraph (a)(1)(i) of this section.
    (2) Services related to certain exportations and reexportations. To 
the extent not authorized by Sec.  515.533, the exportation or 
reexportation of services, including training, to install, repair, or 
replace items related to communications, or items used to develop 
software that improves the free flow of information or that will 
support private sector activities in Cuba consistent with the export or 
reexport licensing policy of the Department of Commerce, provided that 
any such item subject to the Export Administration Regulations, 15 CFR 
parts 730 through 774, is licensed or otherwise authorized by the 
Department of Commerce for exportation or reexportation to Cuba.
* * * * *
    (d) Software. The importation into the United States, and the 
exportation or reexportation from the United States to third countries, 
of Cuban-origin software is authorized.
    (e) Mobile applications. (1) The importation into the United 
States, and the exportation or reexportation from the United States to 
third countries, of Cuban-origin mobile applications is authorized.

    Note 4 to Sec.  515.578(e)(1):  This paragraph (e)(1) does not 
authorize U.S.-owned or -controlled firms in third countries to 
import goods of Cuban origin into the authorized trade zone. See 
Sec.  515.559.

    (2) The employment of Cuban nationals to develop mobile 
applications is authorized.
* * * * *


Sec.  515.582  [Amended]

0
9. Amend Sec.  515.582 by:
0
a. In the section heading and introductory text, removing ``Cuban'' and 
adding in its place ``private sector''; and
0
b. In the introductory text, removing ``entrepreneurs as'' and adding 
in its place ``entrepreneurs, as defined in Sec.  515.340. The list of 
goods and services eligible for importation under this section is''.

0
10. Amend Sec.  515.584 by:
0
a. In paragraph (d), removing ``reject'' and adding in its place 
``process'';
0
b. In paragraph (e), in the first sentence, adding ``paragraph (d) of 
this section,'' after ``processed pursuant to'' and adding a comma 
after ``Sec.  515.562(b)'';
0
c. Adding a heading to paragraph (h) and redesignating the text of 
paragraph (h) as paragraph (h)(1); and
0
d. Adding paragraph (h)(2).
    The additions read as follows:


Sec.  515.584  Certain financial transactions involving Cuba.

* * * * *
    (h) Opening and maintaining bank accounts for certain Cuban 
nationals. * * *
    (2) Any banking institution, as defined in Sec.  515.314, that is a 
person subject to U.S. jurisdiction is authorized to open and maintain 
accounts solely in the name of a Cuban national who is an independent 
private sector entrepreneur, as defined in Sec.  515.340, for the 
purposes of conducting transactions authorized pursuant to, or exempt 
from the prohibitions of, this part.

Bradley T. Smith,
Director, Office of Foreign Assets Control.
[FR Doc. 2024-11618 Filed 5-28-24; 8:45 am]
BILLING CODE 4810-AL-P