OFAC’s Digital Charity: Cubans Get Social Media and Video Games

The ‎U.S.‏ ‎Department ‎of ‎the ‎Treasury’s ‎Office‏ ‎of ‎Foreign‏ ‎Assets‏ ‎Control ‎(OFAC) announced ‎amendments‏ ‎to ‎the‏ ‎Cuban ‎Assets ‎Control ‎Regulations‏ ‎(CACR)‏ ‎on ‎May‏ ‎28, ‎2024,‏ ‎aimed ‎at ‎promoting ‎internet ‎freedom,‏ ‎supporting‏ ‎independent ‎Cuban‏ ‎private ‎sector‏ ‎entrepreneurs, ‎and ‎expanding ‎access ‎to‏ ‎financial‏ ‎services‏ ‎for ‎Cuban‏ ‎nationals. ‎These‏ ‎changes ‎include‏ ‎updated‏ ‎definitions, ‎authorization‏ ‎of ‎U.S. ‎bank ‎accounts ‎for‏ ‎Cuban ‎entrepreneurs,‏ ‎reinstatement‏ ‎of ‎«U-turn» ‎transactions,‏ ‎and ‎a‏ ‎new ‎email ‎reporting ‎requirement‏ ‎for‏ ‎telecom-related ‎transactions

📌OFAC’s‏ ‎Grand ‎Announcement:‏ ‎On ‎May ‎28, ‎2024, ‎the‏ ‎U.S.‏ ‎Department ‎of‏ ‎the ‎Treasury’s‏ ‎Office ‎of ‎Foreign ‎Assets ‎Control‏ ‎(OFAC)‏ ‎decided‏ ‎to ‎sprinkle‏ ‎some ‎generosity‏ ‎by ‎amending‏ ‎the‏ ‎Cuban ‎Assets‏ ‎Control ‎Regulations ‎(CACR). ‎These ‎changes‏ ‎are ‎supposedly‏ ‎aimed‏ ‎at ‎promoting ‎internet‏ ‎freedom ‎in‏ ‎Cuba ‎and ‎supporting ‎independent‏ ‎Cuban‏ ‎private ‎sector‏ ‎entrepreneurs. ‎How‏ ‎noble!

📌Internet-Based ‎Services: ‎OFAC ‎has ‎graciously‏ ‎expanded‏ ‎the ‎list‏ ‎of ‎authorized‏ ‎internet-based ‎services. ‎Now, ‎Cubans ‎can‏ ‎enjoy‏ ‎social‏ ‎media ‎platforms,‏ ‎video ‎conferencing,‏ ‎e-gaming, ‎user‏ ‎authentication,‏ ‎and ‎instant‏ ‎translation ‎services. ‎Because ‎nothing ‎says‏ ‎freedom ‎like‏ ‎more‏ ‎social ‎media ‎and‏ ‎video ‎games,‏ ‎right?

📌Independent ‎Private ‎Sector ‎Entrepreneurs:‏ ‎The‏ ‎term ‎«self-employed‏ ‎individual» ‎has‏ ‎been ‎replaced ‎with ‎«independent ‎private‏ ‎sector‏ ‎entrepreneur.» ‎This‏ ‎new ‎definition‏ ‎includes ‎self-employed ‎individuals, ‎private ‎cooperatives,‏ ‎and‏ ‎small‏ ‎private ‎businesses.‏ ‎But ‎don’t‏ ‎worry, ‎prohibited‏ ‎officials‏ ‎of ‎the‏ ‎Cuban ‎Government ‎and ‎Communist ‎Party‏ ‎members ‎are‏ ‎excluded.‏ ‎How ‎considerate!

📌U.S. ‎Bank‏ ‎Accounts: ‎Cuban‏ ‎entrepreneurs ‎can ‎now ‎open‏ ‎and‏ ‎use ‎U.S.‏ ‎bank ‎accounts,‏ ‎including ‎online ‎payment ‎platforms, ‎for‏ ‎authorized‏ ‎transactions. ‎However,‏ ‎if ‎you’re‏ ‎a ‎Cuban ‎business ‎owned ‎by‏ ‎a‏ ‎government‏ ‎official ‎or‏ ‎Communist ‎Party‏ ‎member, ‎tough‏ ‎luck!

📌U-Turn‏ ‎Transactions: ‎OFAC‏ ‎has ‎reinstated ‎the ‎authorization ‎for‏ ‎«U-turn» ‎transactions.‏ ‎This‏ ‎means ‎U.S. ‎banks‏ ‎can ‎process‏ ‎fund ‎transfers ‎that ‎start‏ ‎and‏ ‎end ‎outside‏ ‎the ‎U.S.,‏ ‎as ‎long ‎as ‎neither ‎the‏ ‎originator‏ ‎nor ‎the‏ ‎beneficiary ‎is‏ ‎subject ‎to ‎U.S. ‎jurisdiction. ‎Because‏ ‎who‏ ‎doesn’t‏ ‎love ‎a‏ ‎good ‎U-turn?

📌Email‏ ‎Reporting ‎Requirement:‏ ‎OFAC‏ ‎is ‎moving‏ ‎into ‎the ‎21st ‎century ‎by‏ ‎replacing ‎its‏ ‎fax‏ ‎and ‎paper ‎mail‏ ‎reporting ‎process‏ ‎with ‎email ‎reports ‎for‏ ‎telecom-related‏ ‎transactions. ‎Welcome‏ ‎to ‎the‏ ‎digital ‎age, ‎OFAC!

📌Biden ‎Administration’s ‎Efforts:‏ ‎These‏ ‎amendments ‎are‏ ‎part ‎of‏ ‎the ‎Biden ‎Administration’s ‎ongoing ‎efforts‏ ‎to‏ ‎alleviate‏ ‎economic ‎pressures‏ ‎on ‎Cuba’s‏ ‎private ‎sector‏ ‎while‏ ‎maintaining ‎tensions‏ ‎with ‎the ‎Cuban ‎Government. ‎It’s‏ ‎a ‎delicate‏ ‎balancing‏ ‎act, ‎after ‎all.

📌Historical‏ ‎Context: ‎This‏ ‎move ‎is ‎reminiscent ‎of‏ ‎the‏ ‎Obama ‎Administration’s‏ ‎2015 ‎policies‏ ‎that ‎eased ‎trade ‎restrictions ‎on‏ ‎Cuba,‏ ‎which ‎were‏ ‎partly ‎reversed‏ ‎by ‎the ‎Trump ‎Administration ‎in‏ ‎2017.‏ ‎It’s‏ ‎like ‎a‏ ‎political ‎seesaw!