Cuban Assets Control Regulations, 46000-46007 [E9-21440]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control
• Foreign Assets Control Office

[Federal Register Volume 74, Number 172 (Tuesday, September 8, 2009)]
[Rules and Regulations]
[Pages 46000-46007]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-21440]


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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 
implement the President's initiative of April 13, 2009, to promote 
greater contact between separated family members in the United States 
and Cuba and to increase the flow of remittances and information to the 
Cuban people. These amendments also implement provisions of the Omnibus 
Appropriations Act, 2009.

DATES: Effective Date: September 3, 2009.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Compliance, 
Outreach & Implementation, tel.: 202-622-2490, Assistant Director for 
Licensing, tel.: 202-622-2480; Assistant Director for Policy, tel.: 
202-622-4855, or Chief Counsel (Foreign Assets Control), tel.: 202-622-
2410 (not toll free numbers).

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (www.treas.gov/ofac) or via facsimile 
through a 24-hour fax-on demand service, tel.: 202-622-0077.

Background

    The Cuban Assets Control Regulations, 31 CFR part 515 (``CACR''), 
were issued by the U.S. Government on July 8, 1963, under the Trading 
With the Enemy Act (50 U.S.C. App. 5 et seq.). Today, OFAC is amending 
the CACR to implement measures announced by the President on April 13, 
2009, to promote

[[Page 46001]]

greater contact between separated family members in the United States 
and Cuba and to increase the flow of remittances and information to the 
Cuban people. OFAC also is amending the CACR to implement certain 
provisions of the Omnibus Appropriations Act, 2009 (Pub. L. 111-8, 123 
Stat. 524) (``Appropriations Act''), as well as to make certain 
technical and conforming changes.
    Travel to visit close relatives in Cuba. Sections 515.560 and 
515.561 are amended to make a number of changes to the rules regarding 
travel-related transactions incident to visiting relatives in Cuba. 
Pursuant to July 2004 amendments to the CACR, and prior to March 11, 
2009, OFAC issued specific licenses on a case-by-case basis to persons 
subject to the jurisdiction of the United States for visits, no more 
than once every three years and for a period not to exceed 14 days, to 
a member of the person's ``immediate family'' (defined as any spouse, 
child, grandchild, parent, grandparent, or sibling of the traveler or 
the traveler's spouse, as well as any spouse, widow, or widower of any 
of the foregoing) who was a national of Cuba. A licensed traveler was 
authorized to spend up to $50 a day for living expenses in Cuba and an 
additional $50 per trip to cover transportation-related expenses within 
Cuba as necessary. Any individual accompanying a licensed family 
traveler had to separately qualify for a family travel specific 
license. Also pursuant to the July 2004 amendments to the CACR, and 
prior to March 11, 2009, persons subject to the jurisdiction of the 
United States who wished to visit a family member who was not a 
national of Cuba (e.g., a U.S. national traveling in Cuba pursuant to 
an OFAC license) had to obtain a specific license that would only be 
issued in certain exigent circumstances.
    In response to Section 621 of the Appropriations Act, which 
prohibited the expenditure of Fiscal Year 2009 appropriated funds to 
administer, implement, or enforce the July 2004 CACR amendments related 
to family travel, OFAC issued a general license and a new statement of 
specific licensing policy on its Web site. These new provisions, which 
were issued on March 11, 2009, reverted to the family travel policy 
that had been in place immediately prior to the July 2004 amendments. 
This March 11 general license authorized one trip per year to visit a 
broader category of ``close relatives'' (including, for example, aunts, 
uncles, cousins, and second cousins) who were nationals of Cuba. The 
March 11 general license contained no limit on the duration of such a 
visit and increased the authorized expenditures in Cuba to match the 
expenditures allowed for all other authorized categories of travel--the 
current State Department per diem for Havana (for use anywhere in Cuba) 
plus amounts for additional transactions directly incident to visiting 
close relatives in Cuba. The general license also authorized family 
travelers to be accompanied by persons who share a common dwelling as a 
family with them. For visits to family who were not nationals of Cuba, 
the March 11 statement of specific licensing policy provided for case-
by-case authorization of visits to the broader category of ``close 
relatives'' without the former exigent circumstances limitation.
    OFAC is amending section 515.561 to reflect the March 11 general 
license issued on OFAC's Web site and to further expand this 
authorization by removing the once per year frequency limitation, so 
that family travelers can now visit their close relatives as often as 
they wish. OFAC also is extending this authorization to close relatives 
of U.S. Government employees assigned to the U.S. Interests Section in 
Havana. Accordingly, prior paragraph (a) of section 515.561 is replaced 
by two new general licenses. New paragraph (a)(1) of section 515.561 
contains a general license authorizing the travel-related transactions 
set forth in section 515.560(c) and additional transactions that are 
directly incident to visiting a close relative who is a national of 
Cuba, as that term is defined in section 515.302. New paragraph (a)(2) 
of section 515.561 provides this same authorization for visits to a 
close relative who is a U.S. Government employee assigned to the U.S. 
Interests Section in Havana.
    The term ``close relative'' is defined in new section 515.339 as 
any individual related to a person by blood, marriage, or adoption who 
is no more than three generations removed from that person or from a 
common ancestor with that person. Both new general licenses contained 
in paragraphs (a)(1) and (a)(2) of section 515.561 authorize persons 
who share a common dwelling as a family with a licensed family traveler 
to accompany the licensed traveler on a family visit.
    OFAC also is amending section 515.561 to reflect the March 11 
statement of specific licensing policy published on OFAC's Web site 
with respect to visits to family members who are not nationals of Cuba. 
Accordingly, the specific licensing policy in paragraph (b) of section 
515.561 is amended to apply to visits to ``close relatives'' (as 
defined in new section 515.339) and to remove the requirement that 
certain exigent circumstances must exist for a license to be issued.
    OFAC is amending section 515.560(c)(2) by removing the $50 per day 
limit on living expenses in Cuba, as well as the $50 per trip limit on 
transportation-related expenses within Cuba, that formerly applied to 
licensed family visits. New section 515.560(c)(2) authorizes all 
transactions ordinarily incident to travel anywhere in Cuba, including 
payment of living expenses and the acquisition in Cuba of goods for 
personal consumption there, that do not exceed the ``maximum per diem 
rate,'' as established by the Department of State for Havana, Cuba, in 
effect at the time travel to Cuba takes place. The current ``maximum 
per diem rate'' may be found on the Department of State's Office of 
Allowances Web site (https://aoprals.state.gov). Nothing in these 
amendments authorizes the importation into the United States of any 
merchandise purchased or otherwise acquired in Cuba. The Commerce 
Department's Bureau of Industry and Security is separately amending its 
regulations to remove the weight restriction on authorized baggage 
carried by travelers to Cuba.
    Remittances to nationals of Cuba. Prior to these amendments, 
remittances from persons subject to the jurisdiction of the United 
States to nationals of Cuba were limited to ``immediate family'' of the 
remitter and capped at $300 per recipient household in any consecutive 
three-month period. OFAC is amending paragraph (a) of section 515.570 
to remove all limitations on the amount and frequency with which 
persons subject to the jurisdiction of the United States may make 
authorized remittances to nationals of Cuba and to expand the category 
of permitted recipients to ``close relatives,'' as defined in new 
section 515.339. These amendments do not affect the prohibition on 
remittances to a ``prohibited official of the Government of Cuba'' or a 
``prohibited member of the Cuban Communist Party.'' The definitions of 
those terms have been moved to new sections 515.337 and 515.338, 
respectively. The general license that existed in paragraph (a) prior 
to these amendments authorizing periodic $300 remittances from a 
blocked account to a recipient in a third country in whose name, or for 
whose beneficial interest, the account is held has been moved to 
paragraph (c).
    OFAC is amending paragraph (b) of section 515.570, which authorizes 
two separate one-time emigration-related remittances, to increase the 
value limit of each of these remittances from $500

[[Page 46002]]

to $1,000. This change is being made to reflect increases in 
emigration-related expenses since the original $500 caps were set in 
1991.
    To track the amendments to paragraphs (a) and (b) of section 
515.570, and subject to certain conditions, OFAC is amending paragraph 
(c) of section 515.570 to authorize unlimited remittances from an 
inherited blocked account in a banking institution in the United States 
to the account holder if s/he is a close relative of the decedent, as 
defined in new section 515.339, as well as limited emigration-related 
remittances from inherited blocked accounts. As noted above, amended 
paragraph (c) also authorizes remittances of up to $300 in any 
consecutive three-month period from any blocked account (including an 
account with funds other than inherited funds) to a Cuban national in a 
third country who is an individual in whose name, or for whose 
beneficial interest, the account is held.
    OFAC also is amending paragraph (c)(4)(i) and paragraph (d)(2) of 
section 515.560. The changes to paragraph (c)(4)(i) of section 515.560 
increase from $300 to $3,000 the total amount of family remittances an 
authorized traveler may carry to Cuba. The changes to paragraph (d)(2) 
of section 515.560 increase from $300 to $3,000 the amount of funds 
received as remittances that a national of Cuba departing the United 
States may carry.
    Remittance-related transactions by banks and other depository 
institutions. A new general license in amended paragraph (a)(3) of 
section 515.572 authorizes depository institutions to act as forwarders 
for remittances. A depository institution, as defined in section 
515.333, no longer needs specific authorization from OFAC to provide 
services as a remittance forwarder. However, depository institutions 
and licensed remittance forwarders are required to collect from persons 
who use their services information showing compliance with the 
remittance provisions in this part. Depository institutions are 
permitted to set up testing arrangements and exchange authenticator 
keys with Cuban financial institutions to forward remittances 
authorized by or pursuant to section 515.570 but may not open or use 
direct correspondent accounts of their own with Cuban financial 
institutions.
    Certain telecommunications services, contracts, related payments, 
and travel-related transactions authorized. OFAC is making substantial 
revisions to section 515.542 to implement the President's directive 
related to increasing the flow of information to the Cuban people. 
Paragraph (b) is amended to authorize all transactions, including but 
not limited to payments, incident to the provision of 
telecommunications services between the United States and Cuba, the 
provision of satellite radio or satellite television services to Cuba, 
or the entry into and performance under roaming service agreements with 
telecommunications services providers in Cuba, by a telecommunications 
services provider that is a person subject to U.S. jurisdiction. Former 
paragraph (c), which set forth a case-by-case licensing policy for 
payments to Cuba for authorized telecommunications services, is removed 
in light of paragraph (b)'s new general license authorizing such 
payments. Paragraph (b) does not authorize the entry into or 
performance of a contract with or for the benefit of any particular 
individual in Cuba or any transactions incident to the establishment of 
facilities to provide telecommunications services linking the United 
States and Cuba or third countries and Cuba. These activities are 
covered instead by new paragraphs (c), (d)(1), and (d)(2).
    New paragraph (c) of section 515.542 authorizes all persons subject 
to U.S. jurisdiction to enter into, and make payments under, contracts 
with non-Cuban telecommunications services providers, or particular 
individuals in Cuba, for services provided to particular individuals in 
Cuba, such as a contract for cellular telephone service for a phone 
owned and used by a particular individual in Cuba, provided that the 
individual is not a prohibited official of the Government of Cuba or a 
prohibited member of the Cuban Communist Party, as defined in sections 
515.337 and 515.338, respectively. The authorization in new paragraph 
(c) includes, but is not limited to, payment for activation, 
installation, usage (monthly, pre-paid, intermittent, or other), 
roaming, maintenance, and termination fees.
    Newly added paragraph (d)(1) of section 515.542 contains a general 
license authorizing transactions incident to the establishment of 
facilities to provide telecommunications services linking the United 
States and Cuba, including but not limited to fiber-optic cable and 
satellite telecommunications facilities. Newly added paragraph (d)(2) 
provides a statement of specific licensing policy with respect to 
transactions incident to the establishment of facilities to provide 
telecommunications services linking third countries and Cuba, including 
but not limited to fiber-optic cable and satellite facilities, provided 
that such facilities are necessary to provide efficient and adequate 
telecommunications services between the United States and Cuba. 
Additional newly added paragraphs set out certain reporting 
requirements and clarifications.
    Travel-related transactions incident to these new authorizations in 
section 515.542 are addressed by amendments to sections 515.564 and 
515.533. New paragraph (a)(3) of section 515.564 provides a general 
license authorizing, with certain conditions, the travel-related 
transactions set forth in section 515.560(c) and additional 
transactions that are directly incident to participation in 
professional meetings for the commercial marketing of, sales 
negotiation for, or performance under contracts for the provision of 
the telecommunications services, or the establishment of facilities to 
provide telecommunications services, authorized by the general licenses 
in section 515.542. With respect to those commercial telecommunications 
transactions that will require Commerce-authorized exports of 
telecommunications-related items, new paragraph (f) of section 515.533 
provides a general license authorizing, with certain conditions, the 
travel-related transactions set forth in section 515.560(c) and 
additional transactions that are directly incident to the commercial 
marketing, sales negotiation, accompanied delivery, or servicing in 
Cuba of telecommunications-related items that have been authorized for 
commercial export or re-export to Cuba by the Department of Commerce.
    Travel-related transactions incident to agricultural and medical 
sales authorized. OFAC is amending section 515.533 of the CACR to add 
new paragraph (e) authorizing certain travel-related transactions 
(former paragraph (e) has been redesignated as paragraph (g)). Pursuant 
to Section 620 of the Appropriations Act, which amended section 910(a) 
of the Trade Sanctions Reform and Export Enhancement Act of 2000 (22 
U.S.C. 7209(a)), new paragraph (e) contains a general license 
authorizing, with certain conditions, the travel-related transactions 
set forth in section 515.560(c) and additional transactions that are 
directly incident to the commercial marketing, sales negotiation, 
accompanied delivery, or servicing in Cuba of agricultural commodities, 
medicine, or medical devices that appear consistent with the export or 
re-export licensing policy of the Department of Commerce.
    Authorization of most transactions of Cuban nationals lawfully 
present in the United States in a non-visitor status.

[[Page 46003]]

Amendments to the CACR published March 24, 2003 (68 FR 14141), added a 
new general license at paragraph (c) of section 515.505 authorizing 
most transactions with Cuban national individuals who are granted 
humanitarian or other parole into the United States and remain in the 
United States pursuant to that grant of parole. This general license 
was intended to apply to all Cuban nationals who are lawfully present 
in the United States other than those who are in the United States on a 
temporary basis (e.g., an individual on a non-immigrant visa valid only 
for a specified period). The requirement that a Cuban national 
individual be paroled into the United States in order to be covered by 
the general license resulted in the unintended exclusion of Cuban 
national individuals who are lawfully present in the United States in a 
non-visitor status but who are not in a paroled status (e.g., those 
granted refugee status).
    OFAC is amending paragraph (c) of section 515.505 to eliminate this 
unintended limitation by replacing the requirement that the individual 
be a national of Cuba ``who has been paroled into the United States'' 
with a requirement that the individual be a national of Cuba ``who is 
lawfully present in the United States in a non-visitor status.'' A 
sentence is added to paragraph (c) explaining that the term non-visitor 
status does not apply to an individual who is present in the United 
States on a non-immigrant visa valid only for a specified period of 
time. Conforming amendments are made to paragraph (e)(2), which 
contains an example of the application of the paragraph (c) general 
license.
    Additional forms of evidence accepted with applications for 
specific licenses unblocking Cuban nationals permanently resident 
outside of Cuba. Former paragraph (b) of section 515.505 contained a 
statement of licensing policy pursuant to which OFAC would issue a 
specific license unblocking a Cuban national who had taken up permanent 
residence in a third country. Historically, OFAC required that a Cuban 
national obtain a permanent residence status recognized by the 
government of the relevant third country in documents issued by that 
government. Accordingly, former paragraph (b) required the submission 
of at least two documents from a list of qualifying documents issued by 
that third-country government showing permanent resident status.
    In recent years, OFAC increasingly has had to address situations 
where Cuban nationals have permanently left Cuba, and in some cases 
have lived outside of Cuba for many years, but are unable to provide 
the type or quantity of evidence required by paragraph (b) of section 
515.505. In some of these cases, the relevant foreign government 
maintains a policy that allows the Cuban national to reside there 
permanently, but that government does not issue documentation 
officially recognizing the Cuban national as a ``permanent resident.'' 
In other cases, the Cuban national may have left Cuba too recently to 
establish permanent residence in a third country, but other evidence, 
such as the circumstances under which the Cuban national left Cuba, 
clearly demonstrates that s/he either does not intend to, or would not 
be welcome to, return to Cuba. To address the cases that may warrant 
the issuance of a license but where the applicant cannot meet the 
evidentiary burden required by former paragraph (b), OFAC is revising 
that paragraph to allow for increased consideration of, and favorable 
licensing actions based upon, other evidence.

Public Participation

    Because the amendments of the Regulations involve a foreign affairs 
function, Executive Order 12866 and the provisions of 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''). 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, Banks, Banking, Blocking of 
Assets, Cuba, Currency, Foreign trade, Imports, Reporting and 
recordkeeping requirements, Securities, Travel restrictions.

0
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 
set forth below:

PART 515--CUBAN ASSETS CONTROL REGULATIONS

0
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); Pub. L. 104-114, 110 Stat. 785 (22 U.S.C. 
6082); Pub. L. 105-277, 112 Stat. 2681; Pub. L. 106-387, 114 Stat. 
1549; Pub. L. 111-8, 123 Stat. 524; E.O. 9193, 7 FR 5205, 3 CFR, 
1938-1943 Comp., p. 1174; 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 C--General Definitions

0
2. Add Sec.  515.337 to subpart C to read as follows:


Sec.  515.337  Prohibited officials of the Government of Cuba.

    For purposes of this part, the term prohibited officials of the 
Government of Cuba means Ministers and Vice-ministers, members of the 
Council of State and the Council of Ministers; members and employees of 
the National Assembly of People's Power; members of any provincial 
assembly; local sector chiefs of the Committees for the Defense of the 
Revolution; Director Generals and sub-Director Generals and higher of 
all Cuban ministries and state agencies; employees of the Ministry of 
the Interior (MININT); employees of the Ministry of Defense (MINFAR); 
secretaries and first secretaries of the Confederation of Labor of Cuba 
(CTC) and its component unions; chief editors, editors, and deputy 
editors of Cuban state-run media organizations and programs, including 
newspapers, television, and radio; and members and employees of the 
Supreme Court (Tribuno Supremo Nacional).

0
3. Add Sec.  515.338 to read as follows:


Sec.  515.338  Prohibited members of the Cuban Communist Party.

    For purposes of this part, the term prohibited members of the Cuban 
Communist Party means members of the Politburo, the Central Committee, 
Department Heads of the Central Committee, employees of the Central 
Committee, and secretaries and first secretaries of the provincial 
Party central committees.

0
4. Add Sec.  515.339 to read as follows:


Sec.  515.339  Close relative.

    (a) For purposes of this part, the term close relative used with 
respect to any person means any individual related to that person by 
blood, marriage, or

[[Page 46004]]

adoption who is no more than three generations removed from that person 
or from a common ancestor with that person.
    (b) Example: Your mother's first cousin is your close relative for 
purposes of this part, because you are both no more than three 
generations removed from your great-grandparents, who are the ancestors 
you have in common. Similarly, your husband's great-grandson is your 
close relative for purposes of this part, because he is no more than 
three generations removed from your husband. Your daughter's father-in-
law is not your close relative for purposes of this part, because you 
have no common ancestor.

Subpart D--Interpretations


Sec.  515.411  [Removed and reserved]

0
5. Remove and reserve Sec.  515.411.


Sec.  515.418  [Removed and reserved]

0
6. Remove and reserve Sec.  515.418.

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

0
7. Amend Sec.  515.505 by italicizing the first sentence of paragraph 
(a) and by revising the section heading, paragraphs (b), (c), and 
(e)(2), and the notes to paragraphs (a) and (b) to read as follows:


Sec.  515.505  Certain Cuban nationals unblocked; transactions of 
certain other Cuban nationals lawfully present in the United States.

    (a) * * *

    Note to paragraph (a):  An individual unblocked pursuant to this 
paragraph does not become blocked again merely by leaving the United 
States. An individual unblocked national remains unblocked unless 
and until the individual thereafter becomes domiciled in or a 
permanent resident of Cuba, meets any of the criteria in Sec.  
515.302(a)(2) through (5), or is a ``specially designated national'' 
of Cuba, as that term is defined in Sec.  515.306 of this part.

    (b) Specific licenses unblocking certain individuals who have taken 
up permanent residence outside of Cuba. Individual nationals of Cuba 
who have taken up permanent residence outside of Cuba may apply to the 
Office of Foreign Assets Control to be specifically licensed as 
unblocked nationals. Applications for specific licenses under this 
paragraph should include copies of at least two documents issued by the 
government authorities of the new country of permanent residence, such 
as a passport, voter registration card, permanent resident alien card, 
or national identity card. In cases where two of such documents are not 
available, other information will be considered, such as evidence that 
the individual has been resident for the past two years without 
interruption in a single country outside of Cuba or evidence that the 
individual does not intend to, or would not be welcome to, return to 
Cuba.

    Note to paragraph (b): An individual unblocked pursuant to this 
paragraph remains unblocked unless and until the individual 
thereafter becomes domiciled in or a permanent resident of Cuba, 
meets any of the criteria in Sec.  515.302(a)(2) through (5), or is 
a ``specially designated national'' of Cuba, as that term is defined 
in Sec.  515.306 of this part.

    (c) General license authorizing certain transactions of individuals 
who are lawfully present in the United States in a non-visitor status. 
An individual national of Cuba who is lawfully present in the United 
States in a non-visitor status is authorized to engage in all 
transactions available to an unblocked national, as that term is 
defined in Sec.  515.307 of this part, except that all property in 
which the individual has an interest that was blocked pursuant to this 
part prior to the date on which the individual became lawfully present 
in the United States in a non-visitor status shall remain blocked. Such 
an individual is further authorized to withdraw a total amount not to 
exceed $250 in any one calendar month from any blocked accounts held in 
the individual's name. For the purposes of this section, the term 
``non-visitor status'' does not apply to an individual who is present 
in the United States on a non-immigrant visa valid only for a specified 
period of time.
* * * * *
    (e) * * *
    (2) Example 2: A national of Cuba with a blocked U.S. bank account 
arrives in the United States without a valid visa but is allowed by the 
U.S. Government to remain in the United States in a non-visitor status. 
One year later, he applies for and receives permanent resident alien 
status. From the date he was permitted to remain in the United States 
in a non-visitor status until the date he applies for permanent 
resident alien status, he qualifies for the general license contained 
in paragraph (c) of this section. During this time he can engage in all 
transactions as if he is an unblocked national, with the exception that 
he cannot gain access to his blocked bank account other than to 
withdraw $250 each month. Beginning at the point in time when he 
applies for permanent resident alien status, he is licensed as an 
unblocked national pursuant to paragraph (a) of this section. At this 
time, he can apply to OFAC for a specific license to have his blocked 
bank account unblocked.
* * * * *

0
8. Amend Sec.  515.533 by revising the section heading, paragraph (a) 
introductory text, and the note to paragraph (b), by redesignating 
existing paragraph (e) as paragraph (g) and revising newly designated 
paragraph (g), and by adding new paragraphs (e) and (f) to read as 
follows:


Sec.  515.533  Transactions incident to exportations from the United 
States and reexportations of 100% U.S.-origin items to Cuba; 
negotiation of executory contracts.

    (a) All transactions ordinarily incident to the exportation of 
items from the United States, or the reexportation of 100% U.S.-origin 
items from a third country, to any person within Cuba are authorized, 
provided that:
* * * * *

    Note to paragraph (b):  This paragraph does not authorize 
transactions related to travel to, from, or within Cuba. See 
paragraphs (e) and (f) for general licenses, and paragraph (g) for a 
statement of specific licensing policy, with respect to such 
transactions.

* * * * *
    (e) General license for travel-related transactions incident to 
sales of agricultural commodities, medicine, or medical devices. The 
travel-related transactions set forth in Sec.  515.560(c) and 
additional transactions that are directly incident to the commercial 
marketing, sales negotiation, accompanied delivery, or servicing in 
Cuba of agricultural commodities, medicine, or medical devices that 
appear consistent with the export or re-export licensing policy of the 
Department of Commerce are authorized, provided that:
    (1) The traveler is regularly employed by a producer or distributor 
of the agricultural commodities, medicine, or medical devices or by an 
entity duly appointed to represent such a producer or distributor;
    (2) The traveler's schedule of activities does not include free 
time, travel, or recreation in excess of that consistent with a full 
work schedule; and
    (3) The traveler submits to OFAC at least 14 days in advance of 
each departure to Cuba a written report identifying both the traveler 
and the producer or distributor and describing the purpose and scope of 
such travel. Within 14 days of return from Cuba, the traveler shall 
submit a written report describing the business activities conducted, 
the persons with whom the traveler met in the course of such 
activities, and the expenses incurred. Such reports must be captioned

[[Page 46005]]

``Section 515.533(e) Report'' and faxed to 202/622-1657 or mailed to 
the Office of Foreign Assets Control, Attn: Licensing Division, 1500 
Pennsylvania Avenue, NW., Annex-2nd Floor, Washington, DC 20220. If 
more than one traveler is traveling on the same trip for or on behalf 
of the same producer or distributor, one combined pre-trip and one 
combined post-trip report may be filed covering all such travelers.
    (f) General license for travel-related transactions incident to 
sales of telecommunications-related items. The travel-related 
transactions set forth in Sec.  515.560(c) and additional transactions 
that are directly incident to the commercial marketing, sales 
negotiation, accompanied delivery, or servicing in Cuba of 
telecommunications-related items that have been authorized for 
commercial export or re-export to Cuba by the Department of Commerce 
are authorized, provided that:
    (1) The traveler is regularly employed by a telecommunications 
services provider that is a person subject to U.S. jurisdiction or by 
an entity duly appointed to represent such a provider;
    (2) The traveler's schedule of activities does not include free 
time, travel, or recreation in excess of that consistent with a full 
work schedule; and
    (3) The traveler submits to OFAC at least 14 days in advance of 
each departure to Cuba a written report identifying both the traveler 
and the telecommunications services provider that is a person subject 
to U.S. jurisdiction and describing the purpose and scope of such 
travel. Within 14 days of return from Cuba, the traveler shall submit a 
written report describing the business activities conducted, the 
persons with whom the traveler met in the course of such activities, 
and the expenses incurred. Such reports must be captioned ``Section 
515.533(f) Report'' and faxed to 202/622-1657 or mailed to the Office 
of Foreign Assets Control, Attn: Licensing Division, 1500 Pennsylvania 
Avenue, NW., Annex-2nd Floor, Washington, DC 20220. If more than one 
traveler is traveling on the same trip for or on behalf of the same 
telecommunications services provider that is a person subject to U.S. 
jurisdiction, one combined pre-trip and one combined post-trip report 
may be filed covering all such travelers.
    (g) Specific licenses for travel-related transactions incident to 
exports. Specific licenses may be issued on a case-by-case basis 
authorizing the travel-related transactions set forth in Sec.  
515.560(c) and additional transactions that are directly incident to 
the marketing, sales negotiation, accompanied delivery, or servicing in 
Cuba of exports that appear consistent with the export or re-export 
licensing policy of the Department of Commerce and are not authorized 
by the general licenses in paragraphs (e) and (f) of this section.

0
9. Revise Sec.  515.542 to read as follows:


Sec.  515.542  Mail and telecommunications-related transactions.

    (a) All transactions of common carriers incident to the receipt or 
transmission of mail between the United States and Cuba are authorized.
    (b) All transactions, including but not limited to payments, 
incident to the provision of telecommunications services between the 
United States and Cuba, the provision of satellite radio or satellite 
television services to Cuba, or the entry into and performance under 
roaming service agreements with telecommunications services providers 
in Cuba, by a telecommunications services provider that is a person 
subject to U.S. jurisdiction are authorized. This paragraph does not 
authorize any transactions addressed in paragraphs (c), (d), (f) or (g) 
of this section, nor does it authorize the entry into or performance of 
a contract with or for the benefit of any particular individual in 
Cuba.
    (c) All persons subject to U.S. jurisdiction are authorized to 
enter into, and make payments under, contracts with non-Cuban 
telecommunications services providers, or particular individuals in 
Cuba, for telecommunications services provided to particular 
individuals in Cuba, provided that such individuals in Cuba are not 
prohibited officials of the Government of Cuba, as defined in Sec.  
515.337 of this part, or prohibited members of the Cuban Communist 
Party, as defined in Sec.  515.338 of this part. The authorization in 
this paragraph includes, but is not limited to, payment for activation, 
installation, usage (monthly, pre-paid, intermittent, or other), 
roaming, maintenance, and termination fees.
    (d)(1) General license for telecommunications facilities linking 
the United States and Cuba. Transactions incident to the establishment 
of facilities to provide telecommunications services linking the United 
States and Cuba, including but not limited to fiber-optic cable and 
satellite facilities, are authorized.
    (2) Specific licenses for telecommunications facilities linking 
third countries and Cuba. Specific licenses may be issued on a case-by-
case basis authorizing transactions incident to the establishment of 
facilities to provide telecommunications services linking third 
countries and Cuba, including but not limited to fiber-optic cable and 
satellite facilities, provided that such facilities are necessary to 
provide efficient and adequate telecommunications services between the 
United States and Cuba.
    (e) Any entity subject to U.S. jurisdiction relying on paragraph 
(b), (c), (d)(1), or (d)(2) of this section shall notify OFAC in 
writing within 30 days after commencing or ceasing to offer such 
services, as applicable, and shall furnish by January 15 and July 15 of 
each year semiannual reports providing the total amount of all payments 
made to Cuba or a third country related to any of the services 
authorized by this section during the prior six months. These 
notifications and reports must be captioned ``Section 515.542 
Notification'' or ``Section 515.542 Report'' and faxed to 202/622-6931 
or mailed to the Office of Foreign Assets Control, Attn: Policy 
Division, 1500 Pennsylvania Avenue, NW., Annex-4th Floor, Washington, 
DC 20220.
    (f) For the purposes of this section, the term telecommunications 
services includes but is not limited to telephone, telegraph, and 
similar services and the transmission of satellite radio and satellite 
television broadcasts and news wire feeds.
    (g) Nothing in this section authorizes the exportation or re-
exportation of any items to Cuba. For the rules related to 
authorization of exports and re-exports to Cuba, see Sec. Sec.  515.533 
and 515.559 of this part.
    (h) For an authorization of travel-related transactions that are 
directly incident to the commercial marketing, sales negotiation, 
accompanied delivery, or servicing in Cuba of telecommunications-
related items that have been authorized for commercial export to Cuba 
by the U.S. Department of Commerce, see Sec.  515.533(f) of this part. 
For an authorization of travel-related transactions that are directly 
incident to participation in professional meetings for the commercial 
marketing of, sales negotiation for, or performance under contracts for 
the provision of the telecommunications services, or the establishment 
of facilities to provide telecommunications services, authorized by 
paragraphs (b), (c), or (d)(1) of this section, see paragraph (a)(3) of 
section 515.564 of this part. Nothing in this Sec.  515.542 authorizes 
transactions related to travel to, from, or within Cuba.

[[Page 46006]]

Sec.  515.545  [Amended]

0
10. Amend Sec.  515.545 by removing paragraph (a) and by redesignating 
paragraphs (b) and (c) as paragraphs (a) and (b), respectively.

0
11. Amend Sec.  515.560 by removing paragraph (f); by redesignating 
paragraph (g) as paragraph (f); and by revising paragraphs (a)(1), 
(a)(4), (a)(12), (c)(1), (c)(2), (c)(4)(i), and (d) to read as follows:


Sec.  515.560  Travel-related transactions to, from, and within Cuba by 
persons subject to U.S. jurisdiction.

    (a) * * *
    (1) Family visits (general and specific licenses) (see Sec.  
515.561);
* * * * *
    (4) Professional research and professional meetings (general and 
specific licenses) (see Sec.  515.564);
* * * * *
    (12) Certain export transactions that may be considered for 
authorization under existing Department of Commerce regulations and 
guidelines with respect to Cuba or engaged in by U.S.-owned or -
controlled foreign firms (general and specific licenses) (see 
Sec. Sec.  515.533 and 515.559).
* * * * *
    (c) * * *
    (1) Transportation to and from Cuba. All transportation-related 
transactions ordinarily incident to travel to and from (not within) 
Cuba are authorized.
    (2) Living expenses in Cuba. All transactions ordinarily incident 
to travel anywhere within Cuba, including payment of living expenses 
and the acquisition in Cuba of goods for personal consumption there, 
are authorized, provided that, unless otherwise authorized, the total 
for such expenses does not exceed the ``maximum per diem rate'' for 
Havana, Cuba, in effect during the period that the travel takes place. 
The maximum per diem rate is published in the Department of State's 
``Maximum Travel per Diem Allowances for Foreign Areas,'' a supplement 
to section 925, Department of State Standardized Regulations 
(Government Civilians, Foreign Areas), which is available from the 
Government Printing Office, Superintendent of Documents, P.O. Box 
371945, Pittsburgh, PA 1520-7954, and on the Department of State's 
Office of Allowances Web site (https://aoprals.state.gov).
* * * * *
    (4) * * *
    (i) The total of all family remittances authorized by Sec.  
515.570(a) does not exceed $3,000, and
* * * * *
    (d) A blocked Cuban national permanently resident outside the 
United States who is departing the United States may carry currency, as 
that term is defined in paragraph (c)(5) of this section, as follows:
    (1) The amount of any currency brought into the United States by 
the Cuban national and registered with U.S. Customs and Border 
Protection upon entry;
    (2) Up to $3,000 in funds received as remittances by the Cuban 
national during his or her stay in the United States; and
* * * * *

0
12. Revise Sec.  515.561 to read as follows:


Sec.  515.561  Persons visiting close relatives in Cuba.

    (a) General license. (1) Persons subject to the jurisdiction of the 
United States and persons traveling with them who share a common 
dwelling as a family with them are authorized to engage in the travel-
related transactions set forth in Sec.  515.560(c) and additional 
transactions directly incident to visiting a close relative, as defined 
in Sec.  515.339 of this part, who is a national of Cuba, as defined in 
Sec.  515.302 of this part.
    (2) Persons subject to the jurisdiction of the United States and 
persons traveling with them who share a common dwelling as a family 
with them are authorized to engage in the travel-related transactions 
set forth in Sec.  515.560(c) and additional transactions directly 
incident to visiting a close relative, as defined in Sec.  515.339 of 
this part, who is a U.S. Government employee assigned to the U.S. 
Interests Section in Havana.
    (b) Specific licenses. Specific licenses may be issued on a case-
by-case basis authorizing persons subject to the jurisdiction of the 
United States and persons traveling with them who share a common 
dwelling as a family with them to engage in the travel-related 
transactions set forth in Sec.  515.560(c) and additional transactions 
directly incident to visiting a close relative, as defined in Sec.  
515.339 of this part, who is neither a national of Cuba, as defined in 
Sec.  515.302 of this part, nor a U.S. Government employee assigned to 
the U.S. Interests Section in Havana.

0
13. Amend Sec.  515.564 by adding headings to paragraphs (a)(1) and 
(a)(2), and by adding new paragraph (a)(3) to read as follows:


Sec.  515.564  Professional research and professional meetings in Cuba.

    (a) * * * (1) Professional research. * * *
    (2) Professional meetings organized by an international 
professional organization. * * *
    (3) Professional meetings for commercial telecommunications 
transactions. The travel-related transactions set forth in Sec.  
515.560(c) and additional transactions directly incident to 
participation in professional meetings for the commercial marketing of, 
sales negotiation for, or performance under contracts for the provision 
of the telecommunications services, or the establishment of facilities 
to provide telecommunications services, authorized by paragraphs (b), 
(c), or (d)(1) of Sec.  515.542 of this part by a telecommunications 
services provider that is a person subject to U.S. jurisdiction are 
authorized, provided that:
    (i) The traveler is regularly employed by a telecommunications 
services provider that is a person subject to U.S. jurisdiction or by 
an entity duly appointed to represent such a provider; and
    (ii) The traveler's schedule of activities does not include free 
time, travel, or recreation in excess of that consistent with a full 
work schedule.
* * * * *


0
14. Revise Sec.  515.570 to read as follows:


Sec.  515.570  Remittances to Nationals of Cuba.

    (a) Family remittances authorized. Persons subject to the 
jurisdiction of the United States who are 18 years of age or older are 
authorized to make remittances to nationals of Cuba who are close 
relatives, as defined in Sec.  515.339 of this part, of the remitter, 
provided that:
    (1) The remittances are not made from a blocked source. Certain 
remittances from blocked accounts are authorized pursuant to paragraph 
(c) of this section;
    (2) The recipient is not a prohibited official of the Government of 
Cuba, as defined in Sec.  515.337 of this part, or a prohibited member 
of the Cuban Communist Party, as defined in Sec.  515.338 of this part; 
and
    (3) The remittances are not made for emigration-related purposes. 
Remittances for emigration-related purposes are addressed by paragraph 
(b) of this section.
    (b) Two one-time $1,000 emigration-related remittances authorized. 
Persons subject to the jurisdiction of the United States are authorized 
to remit the following amounts:
    (1) Up to $1,000 per payee on a one-time basis to Cuban nationals 
for the purpose of covering the payees'

[[Page 46007]]

preliminary expenses associated with emigrating from Cuba to the United 
States. These remittances may be sent before the payees have received 
valid visas issued by the State Department or other approved U.S. 
immigration documents, but may not be carried by a licensed traveler to 
Cuba until the payees have received valid visas issued by the State 
Department or other approved U.S. immigration documents. See Sec.  
515.560(c)(4) of this part for the rules regarding the carrying of 
authorized remittances to Cuba. These remittances may not be made from 
a blocked source unless authorized pursuant to paragraph (c) of this 
section.
    (2) Up to an additional $1,000 per payee on a one-time basis to 
Cuban nationals for the purpose of enabling the payees to emigrate from 
Cuba to the United States, including for the purchase of airline 
tickets and payment of exit or third-country visa fees or other travel-
related fees. These remittances may be sent only once the payees have 
received valid visas issued by the State Department or other approved 
U.S. immigration documents. A remitter must be able to provide the visa 
recipients' full names, dates of birth, visa numbers, and visa dates of 
issuance. See Sec.  515.560(c)(4) of this part for the rules regarding 
the carrying of authorized remittances to Cuba. These remittances may 
not be made from a blocked source unless authorized pursuant to 
paragraph (c) of this section.
    (c) Provided the recipient is not a prohibited official of the 
Government of Cuba, as defined in Sec.  515.337 of this part, or a 
prohibited member of the Cuban Communist Party, as defined in Sec.  
515.338 of this part, certain remittances from blocked sources are 
authorized as follows:
    (1) Funds deposited in a blocked account in a banking institution 
in the United States held in the name of, or in which the beneficial 
interest is held by, a national of Cuba as a result of a valid 
testamentary disposition, intestate succession, or payment from a life 
insurance policy or annuity contract triggered by the death of the 
policy or contract holder may be remitted:
    (i) To that national of Cuba, provided that s/he is a close 
relative, as defined in Sec.  515.339 of this part, of the decedent;
    (ii) To that national of Cuba as emigration-related remittances in 
the amounts and consistent with the criteria set forth in paragraph (b) 
of this section.
    (2) Up to $300 in any consecutive three-month period may be 
remitted from any blocked account in a banking institution in the 
United States to a Cuban national in a third country who is an 
individual in whose name, or for whose beneficial interest, the account 
is held.
    (d) Specific licenses. Specific licenses may be issued on a case-
by-case basis authorizing the following:
    (1) Remittances by persons subject to U.S. jurisdiction, including 
but not limited to non-governmental organizations and individuals, to 
independent non-governmental entities in Cuba, including but not 
limited to pro-democracy groups, civil society groups, and religious 
organizations, and to members of such groups or organizations;
    (2) Remittances from a blocked account to a Cuban national in 
excess of the amount specified in paragraph (c)(2) of this section; or
    (3) Remittances by persons subject to U.S. jurisdiction to a person 
in Cuba, directly or indirectly, for transactions to facilitate non-
immigrant travel by an individual in Cuba to the United States under 
circumstances where humanitarian need is demonstrated, including but 
not limited to illness or other medical emergency.

    Note to Sec.  515.570:  For the rules relating to the carrying 
of remittances to Cuba, see Sec.  515.560(c)(4) of this part. 
Persons subject to U.S. jurisdiction are prohibited from engaging in 
the collection or forwarding of remittances to Cuba unless 
authorized pursuant to Sec.  515.572. For a list of authorized U.S. 
remittance service providers other than depository institutions, see 
Authorized Providers of Air, Travel and Remittance Forwarding 
Services to Cuba available from OFAC's Web site (www.treas.gov/ofac).


0
15. Amend Sec.  515.572 by revising paragraph (a)(3) and adding a note 
to paragraph (a)(3) to read as follows:


Sec.  515.572  Authorization of transactions incident to the provision 
of travel services, carrier services, and remittance forwarding 
services.

    (a) * * *
    (3) Authorization of remittance forwarders. Persons subject to U.S. 
jurisdiction, including persons that provide payment forwarding 
services and noncommercial organizations acting on behalf of donors, 
that wish to provide services in connection with the collection or 
forwarding of remittances authorized pursuant to this part must obtain 
specific authorization from OFAC. Depository institutions, as defined 
in Sec.  515.333, are hereby authorized to provide these services 
without obtaining specific authorization from OFAC. However, all 
licensed remittance forwarders, including depository institutions, that 
forward remittances authorized pursuant to this part are required to 
collect from persons who use their services information showing 
compliance with the relevant remittance provisions of this part. 
Depository institutions are permitted to set up testing arrangements 
and exchange authenticator keys with Cuban financial institutions to 
forward remittances authorized by or pursuant to Sec.  515.570, but may 
not open or use direct correspondent accounts of their own with Cuban 
financial institutions.

    Note to paragraph (a)(3):  A suggested form for the collection 
of information showing compliance with the remittance provisions in 
Sec.  515.570 is available from OFAC's Web site (www.treas.gov/ofac).

* * * * *

    Dated: September 1, 2009.
Adam J. Szubin,
Director, Office of Foreign Assets Control.

    Approved: September 1, 2009.
Stuart A. Levey,
Under Secretary, Office of Terrorism and Financial Intelligence, 
Department of the Treasury.
[FR Doc. E9-21440 Filed 9-3-09; 4:15 pm]
BILLING CODE 4811-45-P