Cuban Assets Control Regulations, 56915-56926 [2015-23587]

Download as PDF rmajette on DSK7SPTVN1PROD with RULES Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations for all of the stock of New S. S’s distribution of 80% of its property to P as part of the complete liquidation of S meets the requirements of section 332. Thus, section 381(a)(1) applies to P’s acquisition of 80% of the property held by S immediately before the transaction. Under paragraph (m)(1)(v) of this section, the potential F reorganization in which 20% of the property held by S immediately before the transaction is transferred to New S cannot be a mere change of S, because section 381(a) applies to P’s acquisition of property held by S immediately before the potential F reorganization. Accordingly, sections 331 and 336 apply to A’s acquisition of property from S and S’s distribution of property to A, and section 351 applies to A’s contribution of that property to New S. Example 10. Other acquiring corporation— no mere change. P owns all of the stock of S1. The management of P determines that it would be in the best interest of S1 to merge S1 into P. Accordingly, pursuant to a state merger statute, S1 merges into P. Immediately afterward and as part of the same plan, P contributes 50% of the former assets of S1 to newly incorporated S2 in exchange for all of the stock of S2. The transaction does not qualify as a complete liquidation of S1 under section 332 (because of the reincorporation of some of S1’s assets) but does qualify as a reorganization under section 368(a)(1)(A) by reason of section 368(a)(2)(C) and paragraph (k) of this section. Under paragraph (m)(1)(v) of this section, the potential F reorganization in which some of the former assets of S1 are transferred (in form) first to P, and then to S2, is not a mere change of S1, because section 381(a) applies to P’s acquisition of property held by S1 immediately before the potential F reorganization. Furthermore, under paragraph (m)(3)(iv)(A) of this section, P, the corporation in control of S2 within the meaning of section 368(c), is a party to the reorganization within the meaning of section 368(b). Thus, the indirect transfer of property from S1 to S2 does not qualify under section 368(a)(1)(F). Example 11. Other acquiring corporation— mere change. P owns all of the stock of S1. S1’s only asset is all of the equity interest in LLC2, a domestic limited liability company. Under § 301.7701–3 of this chapter, LLC2 is disregarded as an entity separate from its owner, S1. Pursuant to an integrated plan to undergo a reorganization under 368(a)(1)(F), S1 and LLC2 undergo the following two state law conversions. First, under state law LLC2 converts into S2, a corporation. Second, under state law S1 converts into LLC1, a domestic limited liability company. Under § 301.7701–3 of this chapter, LLC1 is disregarded as an entity separate from its owner, P. As a result of the two conversions, S1 is deemed to transfer its assets to S2 in exchange for all of the stock in S2 and then distribute the S2 stock to P in complete liquidation of S1. The two conversions, viewed as a potential F reorganization, constitute a mere change of S1, and that potential F reorganization qualifies as a reorganization under section 368(a)(1)(F). The result would be the same if, instead of converting into S2 pursuant to state law, VerDate Sep<11>2014 16:55 Sep 18, 2015 Jkt 235001 LLC2 elected under § 301.7701–3(c) to change its classification for federal tax purposes and be treated as an association taxable as a corporation, provided the effective date of the election (and its resulting deemed transactions) occurs before the conversion of S1. Example 12. Other acquiring corporation— no mere change. The facts are the same facts as in Example 11, except that S1 converts into LLC1 prior to the conversion of LLC2 into S2. As a result of these conversions, S1 is deemed to distribute all of its assets to P in exchange for all of P’s S1 stock, and P is deemed to transfer all of those assets to S2 in exchange for all of the stock in S2. The transaction does not qualify as a complete liquidation of S1 under section 332 (because of the reincorporation of S1’s assets), but does qualify as a reorganization under section 368(a)(1)(C) by reason of section 368(a)(2)(C) and paragraph (k) of this section. Under paragraph (m)(1)(v) of this section, the potential F reorganization in which the former assets of S1 are deemed transferred, first by S1 to P, and then by P to S2, is not a mere change of S1 because section 381(a) applies to P’s acquisition of property held by S1 immediately before the potential F reorganization. Furthermore, the corporation in control of S2, within the meaning of section 368(c), is a party to the reorganization within the meaning of section 368(b). Thus, the indirect transfer of property from S1 to S2 does not qualify under section 368(a)(1)(F). Example 13. Series of related transactions—no mere change. X owns all of the stock of T. P acquires all of the stock of T in exchange for consideration consisting of $50 cash and P voting stock with $50 value. No election is made under section 338. Immediately thereafter and as part of the same plan, P forms S as a wholly-owned subsidiary, and T is merged into S. Viewed in isolation as a potential F reorganization, the merger of T into S appears to constitute a mere change of T. However, the acquisition of the T stock by P and the merger of T into S, viewed together, qualify as a reorganization under section 368(a)(1)(A) by reason of section 368(a)(2)(D). The step transaction doctrine is applied treat the transaction as a statutory merger of T into S in exchange for $50 cash and $50 of P’s voting stock (and S’s assumption of T’s liabilities), P’s momentary ownership of T stock is disregarded. Under paragraph (m)(3)(iv)(A) of this section, P, the corporation in control of S, is a party to the reorganization within the meaning of section 368(b). Thus, the transfer of property from T to S does not qualify under section 368(a)(1)(F). Example 14. Multiple transferor corporations—no mere change. P owns all the stock of S1 and S2. The management of P determines it would be in the best interest of S1 and S2 to operate as a single corporation. P forms S3 and, under applicable corporate law, S1 and S2 simultaneously merge into S3. Immediately after the merger, P owns all the stock of S3. Each of the mergers can be tested as a potential F reorganization. However, immediately after the simultaneous mergers, PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 56915 the resulting corporation, S3, holds property acquired from a corporation other than the transferor corporation, and section 381(a) would apply to the acquisition of such property. Therefore, under paragraph (m)(1)(vi) of this section, neither potential F reorganization is a mere change, and neither merger into S3 qualifies as a reorganization under section 386(a)(1)(F). The result would be different if the mergers were not simultaneous. If S1 completed its merger into S3 before S2 began its merger into S3, the merger of S1 into S3 would qualify as a reorganization under section 368(a)(1)(F), but the merger of S2 into S3 would not so qualify (although it would qualify as a reorganization under sections 368(a)(1)(A) and 368(a)(1)(D)). (5) Effective/Applicability Date. This paragraph (m) applies to transactions occurring on or after September 21, 2015. § 1.381(b)–1 [Amended] Par. 6. Section 1.381(b)–1 is amended by removing the language in paragraph (a)(1) ‘‘1.367(a)–1T(e)’’ and adding ‘‘1.367(a)–1(e)’’ in its place. ■ John M. Dalrymple, Deputy Commissioner for Services and Enforcement. Approved: September 9, 2015. Mark J. Mazur, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2015–23603 Filed 9–18–15; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Office of Foreign Assets Control 31 CFR Part 515 Cuban Assets Control Regulations Office of Foreign Assets Control, Treasury. ACTION: Final rule. AGENCY: The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is amending the Cuban Assets Control Regulations to further implement elements of the policy announced by the President on December 17, 2014 to engage and empower the Cuban people. Among other things, these amendments further facilitate travel to Cuba for authorized purposes (including authorizing by general license the provision of carrier services by vessel), expand the telecommunications and Internet-based services general licenses, authorize certain persons subject to U.S. jurisdiction to establish a physical presence in Cuba, allow certain additional persons subject to U.S. jurisdiction to open and maintain bank SUMMARY: E:\FR\FM\21SER1.SGM 21SER1 56916 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations accounts in Cuba to use for authorized purposes, allow certain additional financial transactions (including removing the limit on donative remittances to Cuba and unblocking certain previously blocked remittances and funds transfers), authorize all persons subject to U.S. jurisdiction to provide goods and services to Cuban national individuals located outside of Cuba, and allow a number of other activities related to, among other areas, legal services, imports of gifts sent to the United States, and educational activities. These amendments also implement certain technical and conforming changes. DATES: Effective: September 21, 2015. FOR FURTHER INFORMATION CONTACT: The Department of the Treasury’s Office of Foreign Assets Control: Assistant Director for Licensing, tel.: 202–622– 2480, Assistant Director for Policy, tel.: 202–622–2746, Assistant Director for Regulatory Affairs, tel.: 202–622–4855, Assistant Director for Sanctions Compliance & Evaluation, tel.: 202–622– 2490; or the Department of the Treasury’s Office of the Chief Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 202–622–2410. SUPPLEMENTARY INFORMATION: Electronic and Facsimile Availability This document and additional information concerning OFAC are available from OFAC’s Web site (www.treasury.gov/ofac). Certain general information pertaining to OFAC’s sanctions programs also is available via facsimile through a 24-hour fax-ondemand service, tel.: 202- 622–0077. rmajette on DSK7SPTVN1PROD with RULES 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. App. 5 et seq.). OFAC has amended the Regulations on numerous occasions. Most recently, on January 16, 2015, OFAC amended the Regulations, in a coordinated action with the Department of Commerce, to implement certain policy measures announced by the President on December 17, 2014 to further engage and empower the Cuban people (the ‘‘January 2015 amendments’’). OFAC’s January 2015 amendments facilitated travel to Cuba for authorized purposes, facilitated the provision by travel agents and airlines of authorized travel and carrier services and the forwarding by certain entities of authorized remittances, raised the limit on certain categories of remittances to VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 Cuba, allowed U.S. financial institutions to open correspondent accounts at Cuban financial institutions to facilitate the processing of authorized transactions, authorized certain transactions with Cuban nationals located outside of Cuba, and allowed a number of other activities related to, among other areas, telecommunications, financial services, trade, and shipping. Today, OFAC and the Department of Commerce are taking additional coordinated actions in support of the President’s Cuba policy. OFAC is amending the Regulations to further implement certain policy measures announced by the President on December 17, 2014 to engage and empower the Cuban people. Among other things, these amendments further facilitate travel to Cuba for authorized purposes (including authorizing by general license the provision of carrier services by vessel), expand the telecommunications and Internet-based services general licenses, authorize certain persons subject to U.S. jurisdiction to establish a physical presence in Cuba to facilitate authorized transactions, allow certain additional persons subject to U.S. jurisdiction to open and maintain bank accounts in Cuba to use for authorized purposes, allow certain additional financial transactions (including removing the limit on donative remittances to Cuba and unblocking certain previously blocked remittances and funds transfers), authorize all persons subject to U.S. jurisdiction to provide goods and services to Cuban national individuals located outside of Cuba, and allow a number of other activities related to, among other areas, legal services, imports of gifts sent to the United States, and educational activities. These amendments also implement certain technical and conforming changes. Travel and Related Services Carrier service by vessel and certain lodging services. OFAC is amending section 515.572 to authorize persons subject to U.S. jurisdiction to provide carrier services by vessel, without the need for specific licenses from OFAC, and to add an authorization to provide certain lodging services aboard such vessels in connection with such transportation. OFAC also is adding a note to section 515.572 to clarify which categories of persons may be transported between Cuba and the United States. Family visits. OFAC is amending section 515.561 to allow persons subject to U.S. jurisdiction and persons traveling with them who share a common dwelling as a family to visit a close relative located in Cuba or PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 accompany a close relative traveling to Cuba pursuant to sections 515.562 (official government business), 515.563 (journalistic activity), 515.564(a) (professional research), 515.565(a)(1) through (4) and (6) (educational activities), 515.566 (religious activities), 515.575 (humanitarian projects), or 515.576 (activities of private foundations or research or educational institutes). OFAC is also removing a restriction requiring that the authorized traveler being visited or accompanied must be in Cuba for more than 60 days if that traveler is located in Cuba pursuant to section 515.565(a)(1)–(4). Bank accounts for authorized travelers. OFAC is amending section 515.560 to allow all authorized travelers to open and maintain bank accounts in Cuba in order to access funds while located in Cuba for authorized transactions, and to close such accounts. Telecommunications and Internetbased Services Subsidiaries, joint ventures, and other business relationships with Cuban individuals and entities. In order to further enhance the free flow of information to, from, and among the Cuban people and to better provide efficient and adequate telecommunications services between the United States and Cuba, OFAC is amending sections 515.542 and 515.578 to authorize persons subject to U.S. jurisdiction to establish and maintain a business presence in Cuba, including through subsidiaries, branches, offices, joint ventures, franchises, and agency or other business relationships with any Cuban individual or entity, to provide authorized telecommunications and internet-based services. OFAC is also authorizing persons subject to U.S. jurisdiction to enter into licensing agreements related to services authorized by section 515.542(b) through (d) and section 515.578(a), and to market such services. OFAC is amending section 515.505 to unblock any entity, office, or other sub-unit established pursuant to sections 515.542 and 515.578. Mobile applications. To further enhance the free flow of information to, from, and among the Cuban people, OFAC is adding a provision in section 515.578 to authorize the importation into the United States of Cuban-origin mobile applications. In addition, OFAC is authorizing the employment of Cuban nationals by persons subject to U.S. jurisdiction to develop such mobile applications. Additional internet-based services and services related to additional authorized exports. In the January 2015 E:\FR\FM\21SER1.SGM 21SER1 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations rmajette on DSK7SPTVN1PROD with RULES amendments, OFAC authorized services beyond those authorized in section 515.533 related to items exported pursuant to the Commerce Department’s License Exception Consumer Communications Devices (CCD), certain non-U.S.-origin items located outside the United States, and certain software not subject to the Export Administration Regulations (15 CFR part 730 et seq.). These services include software design, business consulting, information technology management, and other services to install, repair, and replace such items. OFAC is amending section 515.578 to expand the permitted services to include training related to the installation, repair, or replacement of such items. OFAC also is expanding the authorization to extend to services related to exports of consumer communications devices not eligible for License Exception CCD but authorized pursuant to an individual license from the Department of Commerce and to services related to exports authorized pursuant to the Commerce Department’s License Exception Support for the Cuban People (SCP) of certain commodities and software that will be used by individuals or private sector entities to develop software that will improve the free flow of information or that will support certain private sector activities. OFAC also is amending section 515.578 to authorize persons subject to U.S. jurisdiction to provide services related to all such items that were exported to Cuba from a third country. OFAC is removing a restriction relating to organizations administered or controlled by the Government of Cuba or the Cuban Communist Party with respect to certain internet-based services (such as instant messaging, chat and email, and social networking) authorized pursuant to section 515.578(a)(1), while maintaining this restriction on provision of these services to prohibited officials of the Government of Cuba and prohibited members of the Cuban Communist Party. Physical Presence in Cuba Physical presence in Cuba for certain persons. OFAC is amending section 515.573 to authorize certain persons subject to U.S. jurisdiction to establish a physical presence, such as an office or other facility, in Cuba, to facilitate authorized transactions. This authorization covers the following: news bureaus; exporters of goods authorized for export pursuant to sections 515.533 or 515.559; providers of authorized mail and parcel transmission services and cargo transportation services; providers of VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 telecommunications or internet-based services; entities organizing or conducting certain educational activities; religious organizations; and providers of travel and carrier services. In addition, OFAC is authorizing these individuals and entities to open and maintain bank accounts at financial institutions in Cuba for use for authorized transactions, and to close such accounts. The prior provisions in this section authorizing certain transactions by news organizations have been fully incorporated into the revised section. OFAC is also amending section 515.505 to unblock any entity, office, or other sub-unit established pursuant to section 515.573, as well as to unblock any individual authorized to establish domicile in Cuba pursuant to section 515.573(a)(4). Financial Transactions Remittances. OFAC is amending section 515.570(b) to remove the limitation on donative remittances to Cuban nationals who are not prohibited officials of the Government of Cuba or prohibited members of the Cuban Communist Party. OFAC also is amending section 515.560(c)(4)(i) to remove the limitation on certain authorized remittances that authorized travelers may carry to Cuba, and section 515.560(d)(2) to remove the limitation on the amount of remittances that a Cuban national permanently resident in Cuba who is departing the United States may carry to Cuba. Unblocking of certain previously blocked remittances and funds transfers. Prior to the January 2015 amendments, banks were required to block remittances exceeding the then $500 per quarter limit on authorized periodic remittances to non-family members. Following the January 2015 amendments, banks were required to block remittances exceeding the revised $2,000 per quarter limit on authorized periodic remittances to non-family members. OFAC is issuing a new general license in section 515.570(h) authorizing the unblocking and return of such blocked remittances, provided they would be authorized under the current regulations. Similarly, OFAC is adding a new general license in section 515.584(e) authorizing the unblocking and return of previously blocked funds transfers that could have been rejected or processed pursuant to section 515.584(d)(1) or (d)(2) (certain wire transfers), section 515.562(b) (official business of the U.S. government, foreign governments, and certain intergovernmental organizations), or section 515.579(b) (funds transfers for third-country official missions and PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 56917 certain intergovernmental organizations), if those transfers could be rejected or processed under current regulations. Persons subject to U.S. jurisdiction unblocking funds transfers pursuant to these authorizations must provide a report to OFAC within 10 business days from the date such funds transfers are released. Account access for Cuban nationals present in the United States. Section 515.571 previously authorized depository institutions to open and maintain accounts for a Cuban national who was present in the United States in a non-immigrant status or pursuant to other non-immigrant travel authorization, subject to the requirement that accounts not closed prior to the departure of the Cuban national from the United States be blocked. OFAC is amending section 515.571 to add an authorization for depository institutions to maintain these accounts while the Cuban-national account holder is located outside the United States, provided that the account holder may only access the account while lawfully present in the United States. In addition, prior to today’s amendments, section 515.571 established a $250 cap on payments from blocked accounts held by Cuban nationals in the United States in a nonimmigrant status to use for living expenses. OFAC is amending section 515.571 to remove this cap to more adequately allow Cuban nationals lawfully present in the United States to access sufficient funds for living expenses or other transactions ordinarily incident to their presence in the United States in a non-immigrant status or pursuant to other nonimmigrant travel authorization issued by the U.S. government. Remittances from Cuba to the United States. OFAC is adding a new general license in section 515.587 authorizing remittances from Cuba or from certain Cuban nationals located in third countries to the United States. OFAC is making a conforming change to section 515.572(a)(3) to authorize banking institutions, including U.S.-registered brokers and dealers in securities and U.S.-registered money transmitters, to provide services in connection with the receipt of such remittances. Estate-related transactions. Prior to today’s amendments, a specific license was required for certain estate-related transactions that were not generally licensed, including to unblock shares of a Cuban estate for a U.S. beneficiary and remit the estate of a person subject to U.S. jurisdiction to a Cuban national who is not a close relative. OFAC is now expanding a general license in section E:\FR\FM\21SER1.SGM 21SER1 56918 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations 515.523 related to administering decedents’ estates and a general license in section 515.570(f) to allow the unblocking of, and remittances related to, estates in which a Cuban national has an interest. OFAC is removing section 515.522 and substantially revising section 515.524 because most transactions previously described in those sections are now authorized by general license. OFAC is also making conforming edits to sections 515.407 and 515.525. rmajette on DSK7SPTVN1PROD with RULES Commercial Transactions Provision of goods and services to Cuban nationals located in a third country. OFAC is amending section 515.585 to expand the existing authorization to allow all persons subject to U.S. jurisdiction to provide goods and services to Cuban national individuals located in a third country. In addition, OFAC is adding an authorization to allow banking institutions to open, maintain, and close bank accounts for such Cuban nationals. Other Amendments Legal services. OFAC is amending section 515.512 to generally authorize receipt of payment for the provision of authorized legal services to Cuba or a Cuban national other than prohibited officials of the Government of Cuba and prohibited members of the Cuban Communist Party. In addition, recent amendments to certain OFAC sanctions programs have included general licenses authorizing payments from funds outside the United States for legal services provided to blocked individuals, subject to certain conditions. OFAC is adding this general license in section 515.512(e) to authorize payments from outside the United States for the provision of authorized legal services to or on behalf of prohibited officials of the Government of Cuba and prohibited members of the Cuban Communist Party. OFAC also is adding a new authorization in section 515.588 to permit persons subject to U.S. jurisdiction to receive, and make payments for, certain legal services from Cuba or Cuban nationals, subject to certain conditions. Gift imports sent to the United States. OFAC is amending section 515.544 to generally authorize the importation into the United States of merchandise from Cuba or Cuban-origin merchandise from a third country intended as gifts provided that the value of the merchandise is not more than $100, the merchandise is of a type and in quantities normally given as gifts between individuals, the merchandise is VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 sent and not carried by a traveler, and the merchandise is not alcohol or tobacco products. Educational activities. OFAC is expanding the general license in section 515.565 to allow additional educational activities that are authorized in other sanctions programs administered by OFAC, including the provision of standardized testing services and internet-based courses to Cuban nationals, as well as to authorize U.S. and Cuban universities to engage in academic exchanges and joint noncommercial academic research. Ordinarily incident transactions. OFAC is issuing interpretive guidance in new section 515.421 to clarify that, with certain exceptions, transactions ordinarily incident to a licensed transaction and necessary to give effect thereto are also authorized. In response to public inquiries, OFAC is providing a specific example in this section to clarify that ordinarily incident transactions include payments made using online payment platforms for authorized transactions. Air ambulances and emergency medical services. OFAC has had a favorable specific licensing policy and has authorized on a case-by-case and expedited basis air ambulances to travel to and from Cuba and to evacuate individuals requiring medical care. In such exigent circumstances, OFAC has allowed U.S. medical and other essential personnel to provide services to individual travelers in need of medical attention, regardless of nationality or the purpose of the individual’s travel to Cuba. OFAC is amending section 515.548 to generally authorize such services. To clarify the availability of nonscheduled emergency medical services in the United States, OFAC also is adding a new general license in section 515.589. Humanitarian projects. OFAC is amending section 515.575 to explicitly include disaster relief and historical preservation as authorized humanitarian projects. Cuban official missions. OFAC is amending section 515.586 to authorize funds transfers on behalf of official missions of the Government of Cuba in the United States. Technical and Conforming Amendments. OFAC also is making a number of technical and conforming amendments. Among other things, OFAC is amending sections 515.533(d) and 515.559(d) to make explicit that those authorizations extend to such additional transactions as are directly incident to the installation in Cuba of items consistent with the export or reexport licensing policy of the PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 Department of Commerce, and amending section 515.533(d) by removing the reference to ‘‘sales’’ to clarify that the authorization applies to transactions related to donated exports. OFAC is amending section 515.550 to waive vessel restrictions for vessels engaging in authorized trade in imports, including those from Cuban entrepreneurs, and carrying persons engaging in authorized travel between the United States and Cuba, and making a conforming change to the Note to section 515.207. 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’’) and section 515.572 of this part. Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), those collections of information will be 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, Banking, Blocking of assets, Carrier services, Cuba, Financial transactions, Remittances, Reporting and recordkeeping requirements, Telecommunications, Travel restrictions. 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 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. App 1–44; Pub. L. 101–410, 104 Stat. 890 (28 E:\FR\FM\21SER1.SGM 21SER1 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations U.S.C. 2461 note); Pub. L. 104–114, 110 Stat. 785 (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. 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. 2. Amend § 515.207 by revising the Note to § 515.207 to read as follows. ■ § 515.207 Entry of vessels engaged in trade with Cuba. * * * * Note to § 515.207: For the waiver of the prohibitions contained in this section for vessels engaged in certain trade and travel with Cuba, see § 515.550. Subpart D—Interpretations ■ 3. Revise § 515.407 to read as follows. § 515.407 Administration of blocked estates of decedents. With respect to transactions incident to the administration of the blocked estate of a decedent, including the appointment and qualification of personal representatives, the collection and liquidation of assets, the payment of claims, and distribution to beneficiaries, attention is directed to § 515.523, which authorizes all transactions incident to the administration and distribution of the assets of blocked estates of decedents. ■ 4. Amend § 515.415 by revising paragraph (b) to read as follows: § 515.415 Travel to Cuba; transportation of certain Cuban nationals. * * * * * (b) Transactions incident to the travel to the United States of Cuban nationals who are traveling other than in a nonimmigrant status or pursuant to other non-immigrant travel authorization issued by the U.S. government are not authorized under the provisions of § 515.571. * * * * * ■ 5. Add § 515.421 to subpart D to read as follows: rmajette on DSK7SPTVN1PROD with RULES § 515.421 Transactions ordinarily incident to a licensed transaction. (a) Any transaction ordinarily incident to a licensed transaction and necessary to give effect thereto is also authorized, except: (1) A transaction by or with a prohibited official of the Government of Cuba, as defined in § 515.337, or a prohibited member of the Cuban Communist Party, as defined in § 515.338, where the terms of the VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 applicable general or specific license expressly exclude transactions with such persons; (2) A transaction involving a debit to a blocked account or a transfer of blocked property that is not explicitly authorized within the terms of the license; (3) A transaction prohibited by § 515.208; or (4) In the case of export or reexportrelated transactions authorized by § 515.533(a), payment or financing that is not explicitly authorized by that section. member of the Cuban Communist Party, as defined in § 515.338; (3) Any entity that otherwise would be a national of Cuba solely because of the interest therein of one or more persons licensed in this paragraph (a) as an unblocked national; (4) Any entity, office, or other subunit authorized pursuant to §§ 515.542, 515.573, or 515.578; and (5) Any individual authorized to establish domicile in Cuba pursuant to § 515.573(a)(4). * * * * * ■ 8. Revise § 515.512 to read as follows: Note to paragraph (a)(4): See § 515.533(a)(2) for payment and financing terms for exportations or reexportations authorized pursuant to § 515.533. Subpart B—Prohibitions * 56919 § 515.512 Provision of certain legal services authorized. (b) Examples. (1) A specific license authorizing a person to complete a securities sale involving Cuban Company A, whose property and interests in property are blocked pursuant to this part, also authorizes other persons to engage in activities that are ordinarily incident and necessary to complete the sale, including transactions by the buyer, broker, transfer agents, and banks. (2) A general license authorizing a person to import certain goods from independent Cuban entrepreneurs also authorizes funds transfers or payments that are ordinarily incident to the importation, including payments made using online payment platforms. Subpart E—Licenses, Authorizations, and Statements of Licensing Policy 6. Amend § 515.502 by revising paragraph (b) to read as follows: ■ § 515.502 Effect of subsequent license or authorization. * * * * * (b) No regulation, ruling, instruction, or license authorizes a transaction prohibited under this part unless the regulation, ruling, instruction, or license is issued by the Treasury Department and specifically refers to this part. ■ 7. Amend § 515.505 by revising paragraphs (a)(2) and (3) and adding paragraphs (a)(4) and (5) to read as follows: § 515.505 Certain Cuban nationals unblocked. (a) * * * (2) Any individual national of Cuba who has taken up permanent residence outside of Cuba, provided that the required documentation specified in paragraph (c) of this section is obtained and the individual is not a prohibited official of the Government of Cuba, as defined in § 515.337, or a prohibited PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 (a) The provision of the following legal services to or on behalf of Cuba or a Cuban national is authorized, provided that receipt of payment of professional fees and reimbursement of incurred expenses must be authorized by or pursuant to paragraph (d) or (e) of this section, or otherwise authorized pursuant to this part: (1) Provision of legal advice and counseling on the requirements of and compliance with the laws of the United States or any jurisdiction within the United States, provided that such advice and counseling are not provided to facilitate transactions in violation of this part; (2) Representation of persons named as defendants in or otherwise made parties to legal, arbitration, or administrative proceedings before any U.S. federal, state, or local court or agency; (3) Initiation and conduct of legal, arbitration, or administrative proceedings before any U.S. federal, state, or local court or agency; (4) Representation of persons before any U.S. federal, state, or local court or agency with respect to the imposition, administration, or enforcement of U.S. sanctions against such persons; and (5) Provision of legal services in any other context in which prevailing U.S. law requires access to legal counsel at public expense. (b) The provision of any other legal services to Cuba or a Cuban national, not otherwise authorized in this part, requires the issuance of a specific license. (c) Entry into a settlement agreement or the enforcement of any lien, judgment, arbitral award, decree, or other order through execution, garnishment, or other judicial process purporting to transfer or otherwise alter or affect property in which Cuba or a Cuban national has had an interest at any time on or since 12:01 a.m., Eastern Standard Time, July 8, 1963, is E:\FR\FM\21SER1.SGM 21SER1 rmajette on DSK7SPTVN1PROD with RULES 56920 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations prohibited unless licensed pursuant to this part. (d) Receipts of payment—(1) Legal services to or on behalf of certain blocked persons. All receipts of payment of professional fees and reimbursement of incurred expenses for the provision of legal services authorized pursuant to paragraph (a) of this section to or on behalf of a prohibited official of the Government of Cuba, as defined in § 515.337, or a prohibited member of the Cuban Communist Party, as defined in § 515.338, must be specifically licensed or otherwise authorized pursuant to § 515.512(e), which authorizes certain payments from funds originating outside the United States. (2) Legal services to or on behalf of all others. All receipts of payment of professional fees and reimbursement of incurred expenses for the provision of legal services authorized pursuant to paragraph (a) of this section to or on behalf of Cuba or a Cuban national, other than those described in paragraph (d)(1) of this section, are authorized, except that nothing in this section authorizes the debiting of any blocked account or the transfer of any blocked property. (e) Payments for legal services from funds originating outside the United States authorized. Receipts of payment of professional fees and reimbursement of incurred expenses for the provision of legal services authorized pursuant to § 515.512(a) to or on behalf of a prohibited official of the Government of Cuba, as defined in § 515.337, or a prohibited member of the Cuban Communist Party, as defined in § 515.338, are authorized from funds originating outside the United States, provided that: (1) The funds received by persons subject to U.S. jurisdiction as payment of professional fees and reimbursement of incurred expenses for the provision of legal services authorized pursuant to paragraph (a) of this section do not originate from: (i) A source within the United States; (ii) Any source, wherever located, within the possession or control of a person subject to U.S. jurisdiction; or (iii) Any person, other than the person on whose behalf the legal services authorized pursuant to paragraph (a) of this section are to be provided, whose property and interests in property are blocked pursuant to any part of this chapter other than part 515. (2) Reports. (i) Persons subject to U.S. jurisdiction who receive payments in connection with legal services authorized pursuant to paragraph (a) of this section must submit annual reports VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 no later than 30 days following the end of the calendar year during which the payments were received providing information on the funds received. Such reports shall specify: (A) The individual or entity from whom the funds originated and the amount of funds received; and (B) If applicable: (1) The names of any individuals or entities providing related services to the person subject to U.S. jurisdiction receiving payment in connection with authorized legal services, such as private investigators or expert witnesses; (2) A general description of the services provided; and (3) The amount of funds paid in connection with such services. (ii) The reports, which must reference this section, are to be mailed to: Department of the Treasury, Office of Foreign Assets Control, Attn: Licensing Division, 1500 Pennsylvania Avenue NW., Annex, Washington, DC 20220. Note 1 to § 515.512: Persons subject to U.S. jurisdiction who receive payments in connection with legal services authorized pursuant to § 515.512(a) do not need to obtain specific authorization to contract for related services that are ordinarily incident to the provision of those legal services, such as those provided by private investigators or expert witnesses, or to pay for such services. This does not authorize the hiring of Cuban nationals. Additionally, persons subject to U.S. jurisdiction do not need to obtain specific authorization to provide related services that are ordinarily incident to the provision of legal services authorized pursuant to § 515.512(a). Note 2 to § 515.512: See §§ 515.527 and 515.528 for general licenses authorizing fees due to attorneys in connection with certain intellectual property-related transactions. See § 515.588 for a general license authorizing the receipt of, and payment for, certain legal services from Cuba or a Cuban national. § 515.522 [Removed and Reserved] 9. Remove and reserve § 515.522. 10. Revise § 515.523 to read as follows: ■ ■ § 515.523 Transactions incident to the administration of decedents’ estates. All transactions incident to the administration and distribution of the assets of a blocked estate of a decedent are authorized. Such transactions include the appointment and qualification of a personal representative in the United States or Cuba, collection and preservation of assets by a personal representative and associated fees, payment of funeral expenses and expenses of the last illness, transfer of title, and distribution PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 of assets pursuant to a valid testamentary disposition or intestate succession. All property distributed pursuant to this section is unblocked, provided that neither Cuba nor a Cuban national (other than the decedent or a person unblocked pursuant to § 515.505) has an interest in the property. Note to § 515.523: See § 515.570(f)(1) for a general license authorizing funds deposited in a blocked bank account in a banking institution, as defined in § 515.314, as a result of certain administration of decedents’ estates to be remitted to a national of Cuba. 11. Amend § 515.524 by revising paragraphs (a) and (b), removing paragraph (c), redesignating paragraph (d) as paragraph (c), and adding a Note to paragraph (b) to read as follows: ■ § 515.524 Payment from and transactions in the administration of certain trusts. (a) Any bank or trust company incorporated under the laws of the United States, or of any State, territory, possession, or district of the United States, or any private bank subject to supervision and examination under the banking laws of any State of the United States, acting as trustee of a trust created by gift, donation, or bequest and administered in the United States, in which one or more persons who are designated nationals have an interest, beneficial or otherwise, or are cotrustees, is hereby authorized to engage in the following transactions: (1) Payments of distributive shares of principal or income to all persons legally entitled thereto. (2) Other transactions arising in the administration of such trust which might be engaged in if no Cuban national were a beneficiary or co-trustee of such trust. (b) This section does not authorize a trustee to engage in any other transaction at the request, or upon the instructions, of any beneficiary or cotrustee of such trust or other person who is a Cuban national. Note to paragraph (b): See § 515.523 for a general license authorizing transactions incident to the administration of decedents’ estates. See § 515.570(f)(1) for a general license authorizing funds deposited in a blocked bank account in a banking institution as a result of certain administration of decedents’ estates to be remitted to a national of Cuba. * * * * * 12. Revise § 515.525 to read as follows: ■ E:\FR\FM\21SER1.SGM 21SER1 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations § 515.525 Certain transfers as a consequence of the existence or change of marital status authorized. Any transfer of any dower, curtesy, community property, or other interest of any nature whatsoever, provided that such transfer arises solely as a consequence of the existence or change of marital status, is authorized. ■ 13. Amend § 515.533 by revising paragraph (d) to read as follows: § 515.533 Exportations from the United States to Cuba; reexportations of 100% U.S.-origin items to Cuba; negotiation of executory contracts. * * * * * (d) General license for travel-related transactions incident to exportation or reexportation of certain items. The travel-related transactions set forth in § 515.560(c) and such additional transactions as are directly incident to the conduct of market research, commercial marketing, sales negotiation, accompanied delivery, installation, or servicing in Cuba of items consistent with the export or reexport licensing policy of the Department of Commerce are authorized, provided that the traveler’s schedule of activities does not include free time or recreation in excess of that consistent with a full-time schedule. * * * * * ■ 14. Amend § 515.542 by revising paragraph (a), redesignating paragraphs (e), (f), (g), and (h) as paragraphs (g), (h), (i), and (j), adding new paragraphs (e) and (f), and revising Notes 1 and 2 to § 515.542 to read as follows: rmajette on DSK7SPTVN1PROD with RULES § 515.542 Mail and telecommunicationsrelated transactions. (a) All transactions, including payments, incident to the receipt or transmission of mail and parcels between the United States and Cuba are authorized, provided that the importation or exportation of such mail and parcels is exempt from or authorized pursuant to this part. * * * * * (e) Persons subject to U.S. jurisdiction are authorized to enter into licensing agreements related to services authorized by paragraphs (b) through (d) of this section, and to market such services. (f) Except for transactions prohibited by § 515.208, persons subject to U.S. jurisdiction are authorized to engage in all transactions necessary to establish and maintain a business presence in Cuba, including through subsidiaries, branches, offices, joint ventures, franchises, and agency or other business relationships with any Cuban national, and to enter into all necessary VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 56921 agreements or arrangements with such entity or individual, for the purpose of engaging in the activities authorized in paragraphs (b) through (e) of this section. * * * * * transactions necessary to provide air ambulance and related medical services, including medical evacuation from Cuba, for individual travelers in Cuba, regardless of nationality or the purpose of the individual’s travel to Cuba. Note 1 to § 515.542: For an authorization of travel-related transactions that are directly incident to the conduct of market research, commercial marketing, sales negotiation, accompanied delivery, installation, or servicing in Cuba of items consistent with the export or reexport policy of the Department of Commerce, see § 515.533(d). For an authorization of travel-related transactions that are directly incident to participation in professional meetings, including where such meetings relate to telecommunications services or other activities authorized by paragraphs (b) through (f) of this section, see § 515.564(a). Note to paragraph (b): Persons providing air ambulance services authorized by paragraph (b) are authorized to carry persons who are close relatives, as defined in § 515.539, of the subject of the evacuation. Note 2 to § 515.542: For a general license authorizing a physical presence in Cuba for certain persons, see § 515.573. For an authorization of certain internet-related services, see § 515.578. 15. Revise § 515.544 to read as follows: ■ § 515.544 States. Certain gifts sent to the United The importation into the United States of merchandise from Cuba or Cuban-origin merchandise from a third country intended as gifts is authorized, provided that the value of the merchandise is not more than $100; the merchandise is of a type and in quantities normally given as gifts between individuals; the merchandise is sent and not carried by a traveler (including as accompanied or unaccompanied baggage); and the merchandise is not alcohol or tobacco products. Note to § 515.544: See § 515.533 for a general license authorizing transactions ordinarily incident to exports of items from the United States that are licensed or otherwise authorized by the Department of Commerce, which may include gifts sent to Cuba. 16. Revise § 515.548 to read as follows: ■ § 515.548 Overflight payments, emergency landings, and air ambulance services authorized. (a) The receipt of, and payment of charges for, services rendered by Cuba or a Cuban national in connection with overflights of Cuba or emergency landings in Cuba by aircraft registered in the United States or owned or controlled by, or chartered to, persons subject to U.S. jurisdiction are authorized. (b) Persons subject to U.S. jurisdiction are authorized to engage in all PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 17. Amend § 515.550 by revising paragraphs (a), (c), and (d), adding a Note to paragraph (a), removing the Note to paragraph (d), and adding paragraph (e) to read as follows: ■ § 515.550 Certain vessel transactions authorized. * * * * * (a) Engaging or has engaged in trade with Cuba authorized pursuant to this part; Note to paragraph (a): The authorization in this paragraph includes, for example, trade with Cuba authorized pursuant to §§ 515.533, 515.559, or 515.582, or by specific license. * * * * * (c) Engaging or has engaged in the exportation or re-exportation to Cuba from a third country of agricultural commodities, medicine, or medical devices that would be designated as EAR99 under the Export Administration Regulations (15 CFR parts 730 through 774), if they were located in the United States; (d) A foreign vessel that has entered a port or place in Cuba while carrying students, faculty, and staff that are authorized to travel to Cuba pursuant to § 515.565(a); or (e) Carrying or has carried persons between the United States and Cuba or within Cuba pursuant to the authorization in § 515.572(a)(2) or, in the case of a vessel used solely for personal travel (and not transporting passengers), pursuant to a license or other authorization issued by the Department of Commerce for the exportation or reexportation of the vessel to Cuba. ■ 18. Amend § 515.559 by revising paragraph (d) and Note 2 to § 515.559 to read as follows: § 515.559 Certain export and import transactions by U.S.-owned or -controlled foreign firms. * * * * * (d) General license. Travel-related transactions set forth in § 515.560(c) and such other transactions as are directly incident to market research, commercial marketing, sales negotiation, accompanied delivery, installation, or servicing of exports that are consistent E:\FR\FM\21SER1.SGM 21SER1 56922 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations with the licensing policy under paragraph (a) of this section are authorized, provided that the traveler’s schedule of activities does not include free time or recreation in excess of that consistent with a full-time schedule. * * * * * Note 2 to § 515.559: See § 515.585 for provisions related to certain transactions by persons subject to U.S. jurisdiction with certain Cuban nationals in third countries. 19. Amend § 515.560 by revising paragraph (c)(4), adding paragraph (c)(6) and a Note to paragraph (c)(6), and revising paragraph (d)(2) to read as follows: ■ § 515.560 Travel-related transactions to, from, and within Cuba by persons subject to U.S. jurisdiction. * * * * (c) * * * (4) Carrying remittances to Cuba. The carrying to Cuba of any remittances that the licensed traveler is authorized to remit pursuant to § 515.570 is authorized, provided that no emigration-related remittances authorized by § 515.570(e) are carried to Cuba unless a U.S. immigration visa has been issued for each payee and the licensed traveler can produce the visa recipients’ full names, dates of birth, visa numbers, and visa dates of issuance. * * * * * (6)(i) Opening and maintaining bank accounts. All transactions incident to the opening and maintenance of accounts, including the deposit of funds in such accounts by wire transfer, at a financial institution in Cuba are authorized, provided that such accounts are used only while the traveler is located in Cuba and for the purpose of accessing funds in Cuba for transactions authorized pursuant to, or exempt from, this part. (ii) Closing bank accounts. All transactions incident to the closing of accounts opened pursuant to the authorization in paragraph (c)(6)(i) of this section are authorized, provided that any transfer of funds may only be effected by wire transfer to an account maintained at a depository institution, as defined in § 515.533, that is a person subject to U.S. jurisdiction. rmajette on DSK7SPTVN1PROD with RULES * Note to paragraph (c)(6): Account(s) authorized by this general license may only be accessed while the account holder is located in Cuba for travel authorized pursuant to this part. The account(s) may not be accessed or utilized by the account holder unless the account holder is located in Cuba and is engaging in authorized transactions. The account(s) may be maintained but not accessed while the account holder is located VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 outside of Cuba other than for the purpose of funding or closing the bank account as authorized in paragraph (c)(6). transactions, including the travel-related transactions set forth in § 515.560(c), that are related to the following activities: * * * * * (d) * * * (2) Funds received as remittances pursuant to § 515.570 by the Cuban national during his or her stay in the United States; and * * * * * ■ 20. Amend § 515.561 by revising paragraph (a) to read as follows: Note to paragraph (a)(5): See § 515.571(a) for authorizations related to certain banking transactions by Cuban nationals present in the United States in a non-immigrant status or pursuant to other non-immigrant travel authorization issued by the U.S. government. § 515.561 * Family visits. (a) General license. 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 § 515.560(c) and such additional transactions as are directly incident to: visiting a close relative, as defined in § 515.339, who is a national of Cuba or a person ordinarily resident in Cuba; or visiting a close relative located in Cuba or accompanying a close relative traveling to Cuba pursuant to the authorizations in § 515.562 (official government business), § 515.563 (journalistic activity), § 515.564(a) (professional research), § 515.565(a)(1) through (4) and (6) (educational activities), § 515.566 (religious activities), § 515.575 (humanitarian projects), or § 515.576 (activities of private foundations or research or educational institutes). Note to paragraph (a): Each person relying on the general authorization in this paragraph must retain specific records related to the authorized travel transactions. See §§ 501.601 and 501.602 of this chapter for applicable recordkeeping and reporting requirements. * * * * * 21. Amend § 515.565 by: a. Revising the introductory text to paragraph (a); ■ b. Revising the Note to paragraph (a)(5); ■ c. Revising paragraph (a)(7); ■ d. Redesignating paragraphs (a)(8) and (9) as (a)(11) and (12); ■ e. Adding new paragraphs (a)(8), (9), and (10); ■ f. Revising newly redesignated paragraphs (a)(11) and (12); ■ g. Revising Notes 1 and 2 to paragraph (a); and ■ h. Adding Note 3 to paragraph (a) to read as follows: ■ ■ § 515.565 Educational activities. (a) General license for educational activities. Persons subject to U.S. jurisdiction, including U.S. academic institutions and their faculty, staff, and students, are authorized to engage in PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 * * * * (7) Sponsorship or co-sponsorship of non commercial academic seminars, conferences, symposia, and workshops related to Cuba or global issues involving Cuba and attendance at such events by faculty, staff, and students of a participating U.S. academic institution; (8) Establishment of academic exchanges and joint non-commercial academic research projects with universities or academic institutions in Cuba; (9) Provision of standardized testing services, including professional certificate examinations, university entrance examinations, and language examinations, and related preparatory services for such exams, to Cuban nationals, wherever located; (10) Provision of internet-based courses, including distance learning and Massive Open Online Courses, to Cuban nationals, wherever located, provided that the course content is at the undergraduate level or below; or (11) The organization of, and preparation for, activities described in paragraphs (a)(1) through (10) of this section by employees or contractors of the sponsoring organization that is a person subject to U.S. jurisdiction; (12) Facilitation by an organization that is a person subject to U.S. jurisdiction, or a member of the staff of such an organization, of licensed educational activities in Cuba on behalf of U.S. academic institutions or secondary schools, provided that: (i) The organization is directly affiliated with one or more U.S. academic institutions or secondary schools; and (ii) The organization facilitates educational activities that meet the requirements of one or more of the general licenses set forth in § 515.565(a)(1), (2), (3), and (6). Note 1 to paragraph (a): See § 515.560(c)(6) for an authorization for individuals to open and maintain accounts at Cuban financial institutions; see § 515.573 for an authorization for entities conducting educational activities authorized by § 515.565(a) to establish a physical presence in Cuba, including an authorization to open E:\FR\FM\21SER1.SGM 21SER1 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations and maintain accounts at Cuban financial institutions. Note 2 to paragraph (a): The authorization in this paragraph extends to adjunct faculty and part-time staff of U.S. academic institutions. A student enrolled in a U.S. academic institution is authorized pursuant to § 515.565(a)(1) to participate in the academic activities in Cuba described above through any sponsoring U.S. academic institution. Note 3 to paragraph (a): The export or reexport to Cuba of goods (including software) or technology subject to the Export Administration Regulations (15 CFR parts 730 through 774) may require separate authorization from the Department of Commerce. * * * * * 22. Amend § 515.566 by revising the Note to § 515.566 to read as follows: ■ § 515.566 Religious activities in Cuba. * * * * * Note to § 515.566: See § 515.573 for an authorization permitting religious organizations engaging in activities authorized pursuant to this section to establish a physical presence in Cuba, including an authorization to open and maintain accounts at Cuban financial institutions. 23. Amend § 515.570 by revising paragraphs (b) and (f)(1), redesignating paragraph (h) as paragraph (i), adding new paragraph (h), and revising Note 2 to § 515.570 to read as follows: ■ § 515.570 Remittances. rmajette on DSK7SPTVN1PROD with RULES * * * * * (b) Donative remittances to Cuban nationals authorized. Persons subject to the jurisdiction of the United States are authorized to make donative remittances to Cuban nationals, provided that: (1) The remittances are not made from a blocked source; (2) The recipient is not a prohibited official of the Government of Cuba, as defined in § 515.337, or a prohibited member of the Cuban Communist Party, as defined in § 515.338; (3) The remittances are not made for emigration-related purposes. Remittances for emigration-related purposes are addressed by paragraph (e) of this section; and (4) The remitter, if an individual, is 18 years of age or older. * * * * * (f) * * * (1) Funds deposited in a blocked account in a banking institution, as defined in § 515.314, 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 VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 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 to that national of Cuba, provided that the remittances are not made for emigrationrelated purposes. Remittances for emigration-related purposes are addressed by paragraph (e) of this section . * * * * * (h) Unblocking of certain previously blocked remittances authorized. Banking institutions, as defined in § 515.314, are authorized to engage in all transactions necessary to unblock and return remittances if they would have qualified as authorized had they been sent under current paragraph (b) of this section, provided that persons subject to U.S. jurisdiction unblocking remittances originally blocked on or after August 25, 1997 pursuant to this section must submit a report to the Department of the Treasury, Office of Foreign Assets Control, Attn: Sanctions Compliance & Evaluation Division, 1500 Pennsylvania Avenue NW., Annex, Washington, DC 20220 within 10 business days from the date such remittances are released. Such reports shall include the following: (1) Where available, a copy of the original blocking report filed with OFAC pursuant to § 501.603(b)(1) of this chapter. (2) The date the unblocked remittance was released; (3) The amount of funds unblocked; (4) The name of the party to whom the remittance was released; and (5) A reference to this section as the legal authority under which the remittance was unblocked and returned. * * * * * Note 2 to § 515.570: For the rules relating to the carrying of remittances to Cuba, see § 515.560(c)(4). See § 515.572 for an authorization related to the collection, forwarding, or receipt of certain remittances to or from Cuba. 24. Amend § 515.571 by revising the Note to paragraph (a)(5), redesignating paragraphs (b) and (c) as paragraphs (c) and (d), adding new paragraph (b), and revising redesignated paragraph (c) to read as follows: ■ § 515.571 Certain transactions incident to travel to, from, and within the United States by Cuban nationals. * * * * * Note to paragraph (a)(5): This paragraph authorizes depository institutions, as defined in § 515.333, to open and maintain accounts solely in the name of a Cuban national who is present in the United States in a non- PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 56923 immigrant status or pursuant to other nonimmigrant travel authorization for use while the Cuban national is located in the United States in such status, and to close such accounts prior to departure. See § 515.571(b) for an authorization for depository institutions to maintain accounts opened pursuant to this paragraph while the Cuban national is located outside the United States. * * * * * (b) Maintenance of accounts opened pursuant to paragraph (a)(5) of this section while the Cuban-national account holder is located outside the United States is authorized, provided that the Cuban-national account holder may only access the account pursuant to paragraph (a)(5) of this section when the Cuban-national account holder is lawfully present in the United States in a non-immigrant status or pursuant to other non-immigrant travel authorization issued by the U.S. government. (c) Payments and transfers of credit in the United States from blocked accounts in domestic banking institutions held in the name of a Cuban national who is present in the United States in a nonimmigrant status or pursuant to other non-immigrant travel authorization issued by the U.S. government to or upon the order of such Cuban national are authorized, provided that such payments and transfers of credit are made only for the living, traveling, and similar personal expenses in the United States of such Cuban national or his or her family, or other transactions ordinarily incident to the Cuban national’s presence in the United States in a non-immigrant status or pursuant to other non-immigrant travel authorization issued by the U.S. government. * * * * * ■ 25. Amend § 515.572 by revising paragraphs (a)(2) and (3), adding new paragraph (a)(4), revising paragraph (c), and adding a new Note to § 515.572 to read as follows: § 515.572 Authorization to provide travel services, carrier services, and remittance forwarding services. (a) * * * (2) Authorization to provide carrier services. Persons subject to U.S. jurisdiction are authorized to provide carrier services, to, from, or within Cuba in connection with travel or transportation between the United States and Cuba of persons, baggage, or cargo authorized pursuant to this part. * * * * * (3) Authorization to provide remittance forwarding services. Banking institutions, as defined in § 515.314, including U.S.-registered brokers or E:\FR\FM\21SER1.SGM 21SER1 56924 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations dealers in securities and U.S.-registered money transmitters, are authorized to provide services in connection with the collection, forwarding, or receipt of remittances authorized pursuant to this part. (4) Authorization to provide lodging services. Persons subject to U.S. jurisdiction who are providing carrier services by vessel authorized pursuant to paragraph (a)(2) of this section are authorized to provide lodging services onboard such vessels to persons authorized to travel to or from Cuba pursuant to this part during the period of time the vessel is traveling to, from, or within Cuba, including when docked at a port in Cuba. * * * * * (c) Specific licenses. Specific licenses may be issued on a case-by-case basis authorizing the provision of travel, carrier, or remittance-forwarding services other than those authorized by paragraph (a) of this section. rmajette on DSK7SPTVN1PROD with RULES Note to § 515.572: The following persons may be transported between the United States and Cuba by a person authorized to provide carrier services: (1) Persons subject to U.S. jurisdiction who are traveling to or from Cuba pursuant to a general license under one of the 12 categories of travel listed in § 515.560 or under a specific license from the Office of Foreign Assets Control may be transported between the United States and Cuba; (2) Cuban nationals applying for admission to the United States, as well as third-country nationals, with a valid visa or other travel authorization issued by the U.S. government may be transported to the United States from Cuba; (3) Cuban nationals present in the United States in a non-immigrant status or pursuant to other non-immigrant travel authorization issued by the U.S. government may be transported from the United States to Cuba; (4) Cuban nationals who have taken up residence in the United States and are licensed as unblocked nationals pursuant to § 515.505(a)(1) are persons subject to U.S. jurisdiction and may be transported between the United States and Cuba if they meet the criteria set out in (1) above; and (5) An individual, including a foreign national, who is traveling on official business of the U.S. government, a foreign government, or an intergovernmental organization of which the United States is a member or in which the United States holds observer status—including an employee, contractor, or grantee of such government or intergovernmental VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 organization and any individual traveling on a diplomatic passport, as well as any close relative, as defined in § 515.339, accompanying the traveler— may be transported between the United States and Cuba. ■ 26. Revise § 515.573 to read as follows: § 515.573 Physical presence in Cuba authorized; Cuban news bureaus. (a) All transactions necessary to establish and maintain a physical presence in Cuba by persons subject to U.S. jurisdiction to engage in transactions authorized pursuant to or exempt from the prohibitions of this part that are identified in paragraph (b) of this section are authorized, including the following: (1) Leasing physical premises, including office, warehouse, classroom, or retail outlet space, and securing related goods and services, including for use in and to pay fees related to the operation of the physical premises; (2) Marketing related to the physical presence; (3) Employment of Cuban nationals in Cuba; and (4) Employment of individuals who are persons subject to U.S. jurisdiction. Note to paragraph (a)(4): Individuals who are employed pursuant to § 515.573(a)(4) are authorized to engage in all transactions necessary to establish domicile in Cuba, including accessing U.S. assets, for the duration of their employment. (5)(i) Opening and maintaining bank accounts at Cuban financial institutions to engage in authorized transactions. The opening and maintenance of accounts, including the deposit of funds in such accounts by wire transfer, at a financial institution in Cuba, provided that such accounts are used only for transactions authorized pursuant to, or exempt from, this part. (ii) Closing bank accounts. The closing of an account opened pursuant to the authorization in paragraph (a)(5)(i) of this section, provided that any transfer of funds may only be effected by wire transfer to an account maintained at a depository institution, as defined in § 515.333, that is a person subject to U.S. jurisdiction. Note to paragraph (a): Physical presence includes through a local representative, including an employee or contractor. (b) The following persons subject to U.S. jurisdiction may engage in the transactions authorized pursuant to paragraph (a) of this section, provided that such transactions may only be engaged in to support transactions authorized by or exempt from the prohibitions of this part: PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 (1) News bureaus whose primary purpose is the gathering and dissemination of news to the general public authorized by paragraph (c) of this section; (2) Exporters of goods authorized for export or reexport to Cuba by § 515.533 or § 515.559 or that are otherwise exempt; (3) Entities providing mail or parcel transmission services authorized by § 515.542(a) or providing cargo transportation services in connection with trade involving Cuba authorized by or exempt from the prohibitions of this part; (4) Providers of telecommunications services authorized by § 515.542(b) through (d) or persons engaged in activities authorized by § 515.542(e); (5) Entities organizing or conducting educational activities authorized by § 515.565(a); (6) Religious organizations engaging in religious activities in Cuba authorized by § 515.566; (7) Providers of travel and carrier services authorized by § 515.572; and Note to paragraph (b)(7): This authorization does not allow persons subject to U.S. jurisdiction to establish a physical presence in Cuba for the purpose of providing lodging services in Cuba. (8) Providers of services authorized by § 515.578. (c) News bureaus. (1) All transactions in Cuba related to the gathering and dissemination of news to the general public are authorized. (2) Specific licenses may be issued authorizing transactions necessary for the establishment and operation of news bureaus in the United States by Cuban organizations whose primary purpose is the gathering and dissemination of news to the general public. Note to § 515.573: The export or reexport to Cuba of items subject to the Export Administration Regulations (15 CFR parts 730 through 774) may require separate authorization from the Department of Commerce. 27. Amend § 515.575 by revising paragraph (b) to read as follows: ■ § 515.575 Humanitarian projects. * * * * * (b) Authorized humanitarian projects. The following projects are authorized by paragraph (a) of this section: medical and health-related projects; construction projects intended to benefit legitimately independent civil society groups; disaster relief; historical preservation; environmental projects; projects involving formal or non-formal E:\FR\FM\21SER1.SGM 21SER1 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations educational training, within Cuba or offisland, on the following topics: entrepreneurship and business, civil education, journalism, advocacy and organizing, adult literacy, or vocational skills; community-based grassroots projects; projects suitable to the development of small-scale private enterprise; projects that are related to agricultural and rural development that promote independent activity; microfinancing projects, except for loans, extensions of credit, or other financing prohibited by § 515.208; and projects to meet basic human needs. * * * * * ■ 28. Amend § 515.578 by revising the section heading and paragraphs (a)(2), (a)(4), and (b)(1), redesignating paragraph (c) as paragraph (f), and adding new paragraphs (c), (d), and (e) to read as follows: rmajette on DSK7SPTVN1PROD with RULES § 515.578 Exportation, reexportation, and importation of certain internet-based services; importation of certain software. (a)* * * (2) Services related to certain exportations and reexportations. To the extent not authorized by paragraph (a)(1) of this section or by § 515.533, the exportation or reexportation of services, including software design, business consulting, and information technology management services (including cloud storage), that are related to the following items, or of services to install, repair, or replace such items, and training related to installation, repair, or replacement of such items: (i) Items subject to the Export Administration Regulations (15 CFR part 730 through 774) (EAR). Items exported or reexported to Cuba pursuant to 15 CFR 740.19 (License Exception Consumer Communication Devices (License Exception CCD)), pursuant to 15 CFR 740.21(d)(4) (paragraph (d)(4) of License Exception Support for the Cuban People (License Exception SCP)), or pursuant to an individual license issued by the Department of Commerce for the export of other consumer communication devices that fall outside License Exception CCD or commodities or software used to develop software that fall outside paragraph (d)(4) of License Exception SCP; (ii) Items not subject to the EAR because they are of foreign origin and are located outside the United States. Items that are of a type described in License Exception CCD provided that the items would be designated EAR99 if they were located in the United States or would meet the criteria for classification under the relevant ECCN specified in License Exception CCD if they were subject to the EAR or items VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 of a type described in paragraph (d)(4) of License Exception SCP, provided that the items would be designated EAR99 or controlled on the Commerce Control List for anti-terrorism reasons only if they were located in the United States; and (iii) Software not subject to the EAR because it is described in 15 CFR 734.3(b)(3). Software not subject to the EAR because it is described in 15 CFR 734.3(b)(3) that is exported, reexported, or provided, directly or indirectly, by a person subject to U.S. jurisdiction to Cuba and that is of a type described in License Exception CCD or paragraph (d)(4) of License Exception SCP. * * * * * (4) Exportation, reexportation, or provision of certain internet-based services to certain end-users. (i) The exportation or reexportation, directly or indirectly, from the United States or by persons subject to U.S. jurisdiction, to a prohibited official of the Government of Cuba, as defined in § 515.337, or a prohibited member of the Cuban Communist Party, as defined in § 515.338, of services described in paragraphs (a)(1) or (2) of this section provided that such services are widely available to the public at no cost to the user. (ii) The exportation or reexportation, directly or indirectly, from the United States or by persons subject to U.S. jurisdiction, to organizations administered or controlled by the Government of Cuba or the Cuban Communist Party of the following services: (A) Services described in paragraph (a)(1) of this section, and (B) Services described in paragraph (a)(2) of this section provided that such services are widely available to the public at no cost to the user. * * * * * (b) * * * (1) The direct or indirect exportation or reexportation of services with knowledge or reason to know that such services are intended for a prohibited official of the Government of Cuba, as defined in § 515.337, or a prohibited member of the Cuban Communist Party, as defined in § 515.338, or to organizations administered or controlled by the Government of Cuba or the Cuban Communist Party, except as specified in paragraph (a)(4) of this section. * * * * * (c) Licensing and marketing. Persons subject to U.S. jurisdiction are authorized to enter into licensing agreements related to services PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 56925 authorized by paragraph (a) of this section, and to market such services. (d) Subsidiaries, joint ventures, and other business arrangements. Except for transactions prohibited by § 515.208, persons subject to U.S. jurisdiction are authorized to engage in all transactions necessary to establish and maintain a business presence in Cuba, including through subsidiaries, branches, offices, joint ventures, franchises, and agency or other business relationships with any Cuban national, and to enter into all necessary agreements or arrangements with such entity or individual, for the purpose of engaging in the activities authorized by paragraph (a) or (c) of this section. (e) Mobile applications. (1) The importation into the United States of Cuban-origin mobile applications is authorized. Note to paragraph (e)(1): This paragraph does not authorize U.S.-owned or -controlled firms in third countries to import goods of Cuban origin into the authorized trade zone. See § 515.559. (2) The employment of Cuban nationals to develop mobile applications is authorized. * * * * * § 515.582 [Amended] 29. Amend § 515.582 by removing Note 1 to § 515.582 and redesignating Note 2 to § 515.582 as Note 1 to § 515.582. ■ 30. Amend § 515.584 by adding paragraph (e) to read as follows: ■ § 515.584 Certain financial transactions involving Cuba. * * * * * (e) Unblocking of certain previously blocked funds transfers authorized. Any depository institution, as defined in § 515.533, that is a person subject to U.S. jurisdiction is authorized to unblock and return to the originator or originating financial institution or their successor-in-interest previously blocked funds transfers that could have been rejected or processed pursuant to paragraphs (d)(1) or (2) of this section, § 515.562(b), or § 515.579(b) if the rejection or processing of those transfers would have been authorized had they been sent under the current text of those provisions, provided that persons subject to U.S. jurisdiction unblocking funds transfers originally blocked on or after August 25, 1997, pursuant to this section must submit a report to the Department of the Treasury, Office of Foreign Assets Control, Attn: Sanctions Compliance & Evaluation Division, 1500 Pennsylvania Avenue NW., Annex, E:\FR\FM\21SER1.SGM 21SER1 56926 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations Washington, DC 20220 within 10 business days from the date such funds transfers are released. Such reports shall include the following: (1) Where available, a copy of the original blocking report filed with OFAC pursuant to § 501.603(b)(1) of this chapter. (2) The date the unblocked funds transfer was released; (3) The amount of funds unblocked; (4) The name of the party to whom the funds were released; and (5) A reference to this section as the legal authority under which the funds transfer was unblocked and returned. ■ 31. Amend § 515.585 by revising the section heading, designating the undesignated paragraph as paragraph (a), revising newly designated paragraph (a), and adding paragraph (b) to read as follows: § 515.585 Certain transactions with certain Cuban nationals in third countries. (a) Persons subject to U.S. jurisdiction are authorized to provide goods and services to a Cuban national located in a third country who is an individual, provided that the transaction does not involve a commercial exportation, directly or indirectly, of goods or services to or from Cuba. (b)(1) Opening and maintaining bank accounts. Banking institutions, as defined in § 515.314, are authorized to open and maintain accounts, including the deposit of funds in such accounts by wire transfer, for a Cuban national located in a third country who is an individual, provided that such accounts are used only while the Cuban national is located outside of Cuba and may not be used for transactions that involve a commercial exportation of goods or services to or from Cuba. (2) Closing bank accounts. Banking institutions, as defined in § 515.314, are authorized to close an account opened pursuant to the authorization in paragraph (b)(1) of this section. * * * * * ■ 32. Amend § 515.586 by revising paragraph (c) to read as follows: § 515.586 Cuban official missions in the United States. rmajette on DSK7SPTVN1PROD with RULES * * * * * (c) Depository institutions, as defined in § 515.333, are authorized to operate accounts for, extend credit to, and process funds transfers on behalf of the official missions of the Government of Cuba to the United States, and the official missions of the Government of Cuba to international organizations in the United States, and employees thereof, subject to the limitations in paragraphs (a) and (b) of this section VerDate Sep<11>2014 13:55 Sep 18, 2015 Jkt 235001 and provided that any depository institution making use of the authorization in this section must submit a report to the Department of the Treasury, Office of Foreign Assets Control, Attn: Sanctions Compliance & Evaluation Division, 1500 Pennsylvania Ave NW., Annex, Washington, DC 20220, no later than 30 days following the establishment of the account. Such report shall include the name and address of the depository institution, the name of the account holder, and the account number. Dated: September 16, 2015. John E. Smith, Acting Director, Office of Foreign Assets Control. 33. Add § 515.587 to subpart E to read as follows: [Docket No. USCG–2015–0732] § 515.587 Remittances from Cuban nationals to persons subject to U.S. jurisdiction. Security Zone, Delaware River; Philadelphia, PA ■ Persons subject to U.S. jurisdiction are authorized to receive remittances in the United States from Cuban nationals, wherever located, provided that the remitter is not a prohibited official of the Government of Cuba, as defined in § 515.337, or a prohibited member of the Cuban Communist Party, as defined in § 515.338. Note to § 515.587: See § 515.572 for an authorization to provide services related to the receipt of remittances authorized by this section. 34. Add § 515.588 to subpart E to read as follows: ■ § 515.588 Certain Cuban legal services authorized. (a) All transactions, including payments, ordinarily incident to receipt of the following legal services from Cuba or from a Cuban national are authorized: legal advice and counseling on the requirements of and compliance with the laws of Cuba or any jurisdiction within Cuba, provided that such advice and counseling relate to transactions authorized by or exempt from the prohibitions of this part. (b) The receipt of any other legal services from Cuba or a Cuban national, not otherwise authorized in this part, requires the issuance of a specific license. 35. Add § 515.589 to subpart E to read as follows: ■ § 515.589 Authorization of emergency medical services. The provision of nonscheduled emergency medical services in the United States to Cuban nationals is authorized. PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 [FR Doc. 2015–23587 Filed 9–18–15; 8:45 am] BILLING CODE 4810–AL–P DEPARTMENT OF HOMELAND SECURITY Coast Guard 33 CFR Part 165 RIN 1625–AA87 Coast Guard, DHS. Temporary final rule. AGENCY: ACTION: The Coast Guard is establishing security zones in the waters of the Delaware River and Schuylkill River in Philadelphia, PA. These zones are intended to restrict vessels from portions of the Delaware River and Schuylkill River during the 2015 Papal visit on September 26, 2015, and September 27, 2015. During the enforcement period, no unauthorized vessels or people will be permitted to enter or move within the security zones without permission from the Captain of the Port or his designated representative. This security zone is necessary to provide security for Pope Francis. SUMMARY: This rule will be effective and enforced from 6:00 a.m. on September 25, 2015, to 12:00 p.m. on September 28, 2015. ADDRESSES: Documents mentioned in this preamble are part of docket [USCG– 2015–0732]. To view documents mentioned in this preamble as being available in the docket, go to http:// www.regulations.gov, type the docket number in the ‘‘SEARCH’’ box and click ‘‘SEARCH.’’ Click on Open Docket Folder on the line associated with this rulemaking. You may also visit the Docket Management Facility in Room W12–140 on the ground floor of the Department of Transportation West Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, call or email Lieutenant Brennan Dougherty, U.S. Coast Guard, Sector Delaware Bay, Chief Waterways Management Division, Coast Guard; telephone (215) 271–4851, DATES: E:\FR\FM\21SER1.SGM 21SER1

Agencies

[Federal Register Volume 80, Number 182 (Monday, September 21, 2015)]
[Rules and Regulations]
[Pages 56915-56926]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-23587]


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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.

-----------------------------------------------------------------------

SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is amending the Cuban Assets Control Regulations to 
further implement elements of the policy announced by the President on 
December 17, 2014 to engage and empower the Cuban people. Among other 
things, these amendments further facilitate travel to Cuba for 
authorized purposes (including authorizing by general license the 
provision of carrier services by vessel), expand the telecommunications 
and Internet-based services general licenses, authorize certain persons 
subject to U.S. jurisdiction to establish a physical presence in Cuba, 
allow certain additional persons subject to U.S. jurisdiction to open 
and maintain bank

[[Page 56916]]

accounts in Cuba to use for authorized purposes, allow certain 
additional financial transactions (including removing the limit on 
donative remittances to Cuba and unblocking certain previously blocked 
remittances and funds transfers), authorize all persons subject to U.S. 
jurisdiction to provide goods and services to Cuban national 
individuals located outside of Cuba, and allow a number of other 
activities related to, among other areas, legal services, imports of 
gifts sent to the United States, and educational activities. These 
amendments also implement certain technical and conforming changes.

DATES: Effective: September 21, 2015.

FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's 
Office of Foreign Assets Control: Assistant Director for Licensing, 
tel.: 202-622-2480, Assistant Director for Policy, tel.: 202-622-2746, 
Assistant Director for Regulatory Affairs, tel.: 202-622-4855, 
Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-
622-2490; or the Department of the Treasury's Office of the Chief 
Counsel (Foreign Assets Control), Office of the General Counsel, tel.: 
202-622-2410.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (www.treasury.gov/ofac). Certain general 
information pertaining to OFAC's sanctions programs also is available 
via facsimile through a 24-hour fax-on-demand service, tel.: 202- 622-
0077.

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. App. 5 et seq.). OFAC 
has amended the Regulations on numerous occasions.
    Most recently, on January 16, 2015, OFAC amended the Regulations, 
in a coordinated action with the Department of Commerce, to implement 
certain policy measures announced by the President on December 17, 2014 
to further engage and empower the Cuban people (the ``January 2015 
amendments''). OFAC's January 2015 amendments facilitated travel to 
Cuba for authorized purposes, facilitated the provision by travel 
agents and airlines of authorized travel and carrier services and the 
forwarding by certain entities of authorized remittances, raised the 
limit on certain categories of remittances to Cuba, allowed U.S. 
financial institutions to open correspondent accounts at Cuban 
financial institutions to facilitate the processing of authorized 
transactions, authorized certain transactions with Cuban nationals 
located outside of Cuba, and allowed a number of other activities 
related to, among other areas, telecommunications, financial services, 
trade, and shipping.
    Today, OFAC and the Department of Commerce are taking additional 
coordinated actions in support of the President's Cuba policy. OFAC is 
amending the Regulations to further implement certain policy measures 
announced by the President on December 17, 2014 to engage and empower 
the Cuban people. Among other things, these amendments further 
facilitate travel to Cuba for authorized purposes (including 
authorizing by general license the provision of carrier services by 
vessel), expand the telecommunications and Internet-based services 
general licenses, authorize certain persons subject to U.S. 
jurisdiction to establish a physical presence in Cuba to facilitate 
authorized transactions, allow certain additional persons subject to 
U.S. jurisdiction to open and maintain bank accounts in Cuba to use for 
authorized purposes, allow certain additional financial transactions 
(including removing the limit on donative remittances to Cuba and 
unblocking certain previously blocked remittances and funds transfers), 
authorize all persons subject to U.S. jurisdiction to provide goods and 
services to Cuban national individuals located outside of Cuba, and 
allow a number of other activities related to, among other areas, legal 
services, imports of gifts sent to the United States, and educational 
activities. These amendments also implement certain technical and 
conforming changes.

Travel and Related Services

    Carrier service by vessel and certain lodging services. OFAC is 
amending section 515.572 to authorize persons subject to U.S. 
jurisdiction to provide carrier services by vessel, without the need 
for specific licenses from OFAC, and to add an authorization to provide 
certain lodging services aboard such vessels in connection with such 
transportation. OFAC also is adding a note to section 515.572 to 
clarify which categories of persons may be transported between Cuba and 
the United States.
    Family visits. OFAC is amending section 515.561 to allow persons 
subject to U.S. jurisdiction and persons traveling with them who share 
a common dwelling as a family to visit a close relative located in Cuba 
or accompany a close relative traveling to Cuba pursuant to sections 
515.562 (official government business), 515.563 (journalistic 
activity), 515.564(a) (professional research), 515.565(a)(1) through 
(4) and (6) (educational activities), 515.566 (religious activities), 
515.575 (humanitarian projects), or 515.576 (activities of private 
foundations or research or educational institutes). OFAC is also 
removing a restriction requiring that the authorized traveler being 
visited or accompanied must be in Cuba for more than 60 days if that 
traveler is located in Cuba pursuant to section 515.565(a)(1)-(4).
    Bank accounts for authorized travelers. OFAC is amending section 
515.560 to allow all authorized travelers to open and maintain bank 
accounts in Cuba in order to access funds while located in Cuba for 
authorized transactions, and to close such accounts.

Telecommunications and Internet-based Services

    Subsidiaries, joint ventures, and other business relationships with 
Cuban individuals and entities. In order to further enhance the free 
flow of information to, from, and among the Cuban people and to better 
provide efficient and adequate telecommunications services between the 
United States and Cuba, OFAC is amending sections 515.542 and 515.578 
to authorize persons subject to U.S. jurisdiction to establish and 
maintain a business presence in Cuba, including through subsidiaries, 
branches, offices, joint ventures, franchises, and agency or other 
business relationships with any Cuban individual or entity, to provide 
authorized telecommunications and internet-based services. OFAC is also 
authorizing persons subject to U.S. jurisdiction to enter into 
licensing agreements related to services authorized by section 
515.542(b) through (d) and section 515.578(a), and to market such 
services. OFAC is amending section 515.505 to unblock any entity, 
office, or other sub-unit established pursuant to sections 515.542 and 
515.578.
    Mobile applications. To further enhance the free flow of 
information to, from, and among the Cuban people, OFAC is adding a 
provision in section 515.578 to authorize the importation into the 
United States of Cuban-origin mobile applications. In addition, OFAC is 
authorizing the employment of Cuban nationals by persons subject to 
U.S. jurisdiction to develop such mobile applications.
    Additional internet-based services and services related to 
additional authorized exports. In the January 2015

[[Page 56917]]

amendments, OFAC authorized services beyond those authorized in section 
515.533 related to items exported pursuant to the Commerce Department's 
License Exception Consumer Communications Devices (CCD), certain non-
U.S.-origin items located outside the United States, and certain 
software not subject to the Export Administration Regulations (15 CFR 
part 730 et seq.). These services include software design, business 
consulting, information technology management, and other services to 
install, repair, and replace such items. OFAC is amending section 
515.578 to expand the permitted services to include training related to 
the installation, repair, or replacement of such items. OFAC also is 
expanding the authorization to extend to services related to exports of 
consumer communications devices not eligible for License Exception CCD 
but authorized pursuant to an individual license from the Department of 
Commerce and to services related to exports authorized pursuant to the 
Commerce Department's License Exception Support for the Cuban People 
(SCP) of certain commodities and software that will be used by 
individuals or private sector entities to develop software that will 
improve the free flow of information or that will support certain 
private sector activities. OFAC also is amending section 515.578 to 
authorize persons subject to U.S. jurisdiction to provide services 
related to all such items that were exported to Cuba from a third 
country. OFAC is removing a restriction relating to organizations 
administered or controlled by the Government of Cuba or the Cuban 
Communist Party with respect to certain internet-based services (such 
as instant messaging, chat and email, and social networking) authorized 
pursuant to section 515.578(a)(1), while maintaining this restriction 
on provision of these services to prohibited officials of the 
Government of Cuba and prohibited members of the Cuban Communist Party.

Physical Presence in Cuba

    Physical presence in Cuba for certain persons. OFAC is amending 
section 515.573 to authorize certain persons subject to U.S. 
jurisdiction to establish a physical presence, such as an office or 
other facility, in Cuba, to facilitate authorized transactions. This 
authorization covers the following: news bureaus; exporters of goods 
authorized for export pursuant to sections 515.533 or 515.559; 
providers of authorized mail and parcel transmission services and cargo 
transportation services; providers of telecommunications or internet-
based services; entities organizing or conducting certain educational 
activities; religious organizations; and providers of travel and 
carrier services. In addition, OFAC is authorizing these individuals 
and entities to open and maintain bank accounts at financial 
institutions in Cuba for use for authorized transactions, and to close 
such accounts. The prior provisions in this section authorizing certain 
transactions by news organizations have been fully incorporated into 
the revised section. OFAC is also amending section 515.505 to unblock 
any entity, office, or other sub-unit established pursuant to section 
515.573, as well as to unblock any individual authorized to establish 
domicile in Cuba pursuant to section 515.573(a)(4).

Financial Transactions

    Remittances. OFAC is amending section 515.570(b) to remove the 
limitation on donative remittances to Cuban nationals who are not 
prohibited officials of the Government of Cuba or prohibited members of 
the Cuban Communist Party. OFAC also is amending section 
515.560(c)(4)(i) to remove the limitation on certain authorized 
remittances that authorized travelers may carry to Cuba, and section 
515.560(d)(2) to remove the limitation on the amount of remittances 
that a Cuban national permanently resident in Cuba who is departing the 
United States may carry to Cuba.
    Unblocking of certain previously blocked remittances and funds 
transfers. Prior to the January 2015 amendments, banks were required to 
block remittances exceeding the then $500 per quarter limit on 
authorized periodic remittances to non-family members. Following the 
January 2015 amendments, banks were required to block remittances 
exceeding the revised $2,000 per quarter limit on authorized periodic 
remittances to non-family members. OFAC is issuing a new general 
license in section 515.570(h) authorizing the unblocking and return of 
such blocked remittances, provided they would be authorized under the 
current regulations. Similarly, OFAC is adding a new general license in 
section 515.584(e) authorizing the unblocking and return of previously 
blocked funds transfers that could have been rejected or processed 
pursuant to section 515.584(d)(1) or (d)(2) (certain wire transfers), 
section 515.562(b) (official business of the U.S. government, foreign 
governments, and certain intergovernmental organizations), or section 
515.579(b) (funds transfers for third-country official missions and 
certain intergovernmental organizations), if those transfers could be 
rejected or processed under current regulations. Persons subject to 
U.S. jurisdiction unblocking funds transfers pursuant to these 
authorizations must provide a report to OFAC within 10 business days 
from the date such funds transfers are released.
    Account access for Cuban nationals present in the United States. 
Section 515.571 previously authorized depository institutions to open 
and maintain accounts for a Cuban national who was present in the 
United States in a non-immigrant status or pursuant to other non-
immigrant travel authorization, subject to the requirement that 
accounts not closed prior to the departure of the Cuban national from 
the United States be blocked. OFAC is amending section 515.571 to add 
an authorization for depository institutions to maintain these accounts 
while the Cuban-national account holder is located outside the United 
States, provided that the account holder may only access the account 
while lawfully present in the United States. In addition, prior to 
today's amendments, section 515.571 established a $250 cap on payments 
from blocked accounts held by Cuban nationals in the United States in a 
non-immigrant status to use for living expenses. OFAC is amending 
section 515.571 to remove this cap to more adequately allow Cuban 
nationals lawfully present in the United States to access sufficient 
funds for living expenses or other transactions ordinarily incident to 
their presence in the United States in a non-immigrant status or 
pursuant to other non-immigrant travel authorization issued by the U.S. 
government.
    Remittances from Cuba to the United States. OFAC is adding a new 
general license in section 515.587 authorizing remittances from Cuba or 
from certain Cuban nationals located in third countries to the United 
States. OFAC is making a conforming change to section 515.572(a)(3) to 
authorize banking institutions, including U.S.-registered brokers and 
dealers in securities and U.S.-registered money transmitters, to 
provide services in connection with the receipt of such remittances.
    Estate-related transactions. Prior to today's amendments, a 
specific license was required for certain estate-related transactions 
that were not generally licensed, including to unblock shares of a 
Cuban estate for a U.S. beneficiary and remit the estate of a person 
subject to U.S. jurisdiction to a Cuban national who is not a close 
relative. OFAC is now expanding a general license in section

[[Page 56918]]

515.523 related to administering decedents' estates and a general 
license in section 515.570(f) to allow the unblocking of, and 
remittances related to, estates in which a Cuban national has an 
interest. OFAC is removing section 515.522 and substantially revising 
section 515.524 because most transactions previously described in those 
sections are now authorized by general license. OFAC is also making 
conforming edits to sections 515.407 and 515.525.

Commercial Transactions

    Provision of goods and services to Cuban nationals located in a 
third country. OFAC is amending section 515.585 to expand the existing 
authorization to allow all persons subject to U.S. jurisdiction to 
provide goods and services to Cuban national individuals located in a 
third country. In addition, OFAC is adding an authorization to allow 
banking institutions to open, maintain, and close bank accounts for 
such Cuban nationals.

Other Amendments

    Legal services. OFAC is amending section 515.512 to generally 
authorize receipt of payment for the provision of authorized legal 
services to Cuba or a Cuban national other than prohibited officials of 
the Government of Cuba and prohibited members of the Cuban Communist 
Party. In addition, recent amendments to certain OFAC sanctions 
programs have included general licenses authorizing payments from funds 
outside the United States for legal services provided to blocked 
individuals, subject to certain conditions. OFAC is adding this general 
license in section 515.512(e) to authorize payments from outside the 
United States for the provision of authorized legal services to or on 
behalf of prohibited officials of the Government of Cuba and prohibited 
members of the Cuban Communist Party. OFAC also is adding a new 
authorization in section 515.588 to permit persons subject to U.S. 
jurisdiction to receive, and make payments for, certain legal services 
from Cuba or Cuban nationals, subject to certain conditions.
    Gift imports sent to the United States. OFAC is amending section 
515.544 to generally authorize the importation into the United States 
of merchandise from Cuba or Cuban-origin merchandise from a third 
country intended as gifts provided that the value of the merchandise is 
not more than $100, the merchandise is of a type and in quantities 
normally given as gifts between individuals, the merchandise is sent 
and not carried by a traveler, and the merchandise is not alcohol or 
tobacco products.
    Educational activities. OFAC is expanding the general license in 
section 515.565 to allow additional educational activities that are 
authorized in other sanctions programs administered by OFAC, including 
the provision of standardized testing services and internet-based 
courses to Cuban nationals, as well as to authorize U.S. and Cuban 
universities to engage in academic exchanges and joint non-commercial 
academic research.
    Ordinarily incident transactions. OFAC is issuing interpretive 
guidance in new section 515.421 to clarify that, with certain 
exceptions, transactions ordinarily incident to a licensed transaction 
and necessary to give effect thereto are also authorized. In response 
to public inquiries, OFAC is providing a specific example in this 
section to clarify that ordinarily incident transactions include 
payments made using online payment platforms for authorized 
transactions.
    Air ambulances and emergency medical services. OFAC has had a 
favorable specific licensing policy and has authorized on a case-by-
case and expedited basis air ambulances to travel to and from Cuba and 
to evacuate individuals requiring medical care. In such exigent 
circumstances, OFAC has allowed U.S. medical and other essential 
personnel to provide services to individual travelers in need of 
medical attention, regardless of nationality or the purpose of the 
individual's travel to Cuba. OFAC is amending section 515.548 to 
generally authorize such services. To clarify the availability of 
nonscheduled emergency medical services in the United States, OFAC also 
is adding a new general license in section 515.589.
    Humanitarian projects. OFAC is amending section 515.575 to 
explicitly include disaster relief and historical preservation as 
authorized humanitarian projects.
    Cuban official missions. OFAC is amending section 515.586 to 
authorize funds transfers on behalf of official missions of the 
Government of Cuba in the United States.
    Technical and Conforming Amendments. OFAC also is making a number 
of technical and conforming amendments. Among other things, OFAC is 
amending sections 515.533(d) and 515.559(d) to make explicit that those 
authorizations extend to such additional transactions as are directly 
incident to the installation in Cuba of items consistent with the 
export or reexport licensing policy of the Department of Commerce, and 
amending section 515.533(d) by removing the reference to ``sales'' to 
clarify that the authorization applies to transactions related to 
donated exports. OFAC is amending section 515.550 to waive vessel 
restrictions for vessels engaging in authorized trade in imports, 
including those from Cuban entrepreneurs, and carrying persons engaging 
in authorized travel between the United States and Cuba, and making a 
conforming change to the Note to section 515.207.

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'') and section 515.572 of this part. Pursuant to the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3507), those collections of 
information will be 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, Banking, Blocking of assets, 
Carrier services, Cuba, Financial transactions, Remittances, Reporting 
and recordkeeping requirements, Telecommunications, Travel 
restrictions.
    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 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. App 1-44; Pub. L. 101-410, 104 Stat. 890 (28

[[Page 56919]]

U.S.C. 2461 note); Pub. L. 104-114, 110 Stat. 785 (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. 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 B--Prohibitions

0
2. Amend Sec.  515.207 by revising the Note to Sec.  515.207 to read as 
follows.


Sec.  515.207  Entry of vessels engaged in trade with Cuba.

* * * * *

    Note to Sec.  515.207: For the waiver of the prohibitions 
contained in this section for vessels engaged in certain trade and 
travel with Cuba, see Sec.  515.550.

Subpart D--Interpretations

0
3. Revise Sec.  515.407 to read as follows.


Sec.  515.407  Administration of blocked estates of decedents.

    With respect to transactions incident to the administration of the 
blocked estate of a decedent, including the appointment and 
qualification of personal representatives, the collection and 
liquidation of assets, the payment of claims, and distribution to 
beneficiaries, attention is directed to Sec.  515.523, which authorizes 
all transactions incident to the administration and distribution of the 
assets of blocked estates of decedents.

0
4. Amend Sec.  515.415 by revising paragraph (b) to read as follows:


Sec.  515.415  Travel to Cuba; transportation of certain Cuban 
nationals.

* * * * *
    (b) Transactions incident to the travel to the United States of 
Cuban nationals who are traveling other than in a non-immigrant status 
or pursuant to other non-immigrant travel authorization issued by the 
U.S. government are not authorized under the provisions of Sec.  
515.571.
* * * * *

0
5. Add Sec.  515.421 to subpart D to read as follows:


Sec.  515.421  Transactions ordinarily incident to a licensed 
transaction.

    (a) Any transaction ordinarily incident to a licensed transaction 
and necessary to give effect thereto is also authorized, except:
    (1) A transaction by or with 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, where the 
terms of the applicable general or specific license expressly exclude 
transactions with such persons;
    (2) A transaction involving a debit to a blocked account or a 
transfer of blocked property that is not explicitly authorized within 
the terms of the license;
    (3) A transaction prohibited by Sec.  515.208; or
    (4) In the case of export or reexport-related transactions 
authorized by Sec.  515.533(a), payment or financing that is not 
explicitly authorized by that section.

    Note to paragraph (a)(4):  See Sec.  515.533(a)(2) for payment 
and financing terms for exportations or reexportations authorized 
pursuant to Sec.  515.533.

    (b) Examples. (1) A specific license authorizing a person to 
complete a securities sale involving Cuban Company A, whose property 
and interests in property are blocked pursuant to this part, also 
authorizes other persons to engage in activities that are ordinarily 
incident and necessary to complete the sale, including transactions by 
the buyer, broker, transfer agents, and banks.
    (2) A general license authorizing a person to import certain goods 
from independent Cuban entrepreneurs also authorizes funds transfers or 
payments that are ordinarily incident to the importation, including 
payments made using online payment platforms.

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

0
6. Amend Sec.  515.502 by revising paragraph (b) to read as follows:


Sec.  515.502  Effect of subsequent license or authorization.

* * * * *
    (b) No regulation, ruling, instruction, or license authorizes a 
transaction prohibited under this part unless the regulation, ruling, 
instruction, or license is issued by the Treasury Department and 
specifically refers to this part.

0
7. Amend Sec.  515.505 by revising paragraphs (a)(2) and (3) and adding 
paragraphs (a)(4) and (5) to read as follows:


Sec.  515.505  Certain Cuban nationals unblocked.

    (a) * * *
    (2) Any individual national of Cuba who has taken up permanent 
residence outside of Cuba, provided that the required documentation 
specified in paragraph (c) of this section is obtained and the 
individual 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;
    (3) Any entity that otherwise would be a national of Cuba solely 
because of the interest therein of one or more persons licensed in this 
paragraph (a) as an unblocked national;
    (4) Any entity, office, or other sub-unit authorized pursuant to 
Sec. Sec.  515.542, 515.573, or 515.578; and
    (5) Any individual authorized to establish domicile in Cuba 
pursuant to Sec.  515.573(a)(4).
* * * * *

0
8. Revise Sec.  515.512 to read as follows:


Sec.  515.512  Provision of certain legal services authorized.

    (a) The provision of the following legal services to or on behalf 
of Cuba or a Cuban national is authorized, provided that receipt of 
payment of professional fees and reimbursement of incurred expenses 
must be authorized by or pursuant to paragraph (d) or (e) of this 
section, or otherwise authorized pursuant to this part:
    (1) Provision of legal advice and counseling on the requirements of 
and compliance with the laws of the United States or any jurisdiction 
within the United States, provided that such advice and counseling are 
not provided to facilitate transactions in violation of this part;
    (2) Representation of persons named as defendants in or otherwise 
made parties to legal, arbitration, or administrative proceedings 
before any U.S. federal, state, or local court or agency;
    (3) Initiation and conduct of legal, arbitration, or administrative 
proceedings before any U.S. federal, state, or local court or agency;
    (4) Representation of persons before any U.S. federal, state, or 
local court or agency with respect to the imposition, administration, 
or enforcement of U.S. sanctions against such persons; and
    (5) Provision of legal services in any other context in which 
prevailing U.S. law requires access to legal counsel at public expense.
    (b) The provision of any other legal services to Cuba or a Cuban 
national, not otherwise authorized in this part, requires the issuance 
of a specific license.
    (c) Entry into a settlement agreement or the enforcement of any 
lien, judgment, arbitral award, decree, or other order through 
execution, garnishment, or other judicial process purporting to 
transfer or otherwise alter or affect property in which Cuba or a Cuban 
national has had an interest at any time on or since 12:01 a.m., 
Eastern Standard Time, July 8, 1963, is

[[Page 56920]]

prohibited unless licensed pursuant to this part.
    (d) Receipts of payment--(1) Legal services to or on behalf of 
certain blocked persons. All receipts of payment of professional fees 
and reimbursement of incurred expenses for the provision of legal 
services authorized pursuant to paragraph (a) of this section to or on 
behalf of 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, must be specifically licensed or otherwise 
authorized pursuant to Sec.  515.512(e), which authorizes certain 
payments from funds originating outside the United States.
    (2) Legal services to or on behalf of all others. All receipts of 
payment of professional fees and reimbursement of incurred expenses for 
the provision of legal services authorized pursuant to paragraph (a) of 
this section to or on behalf of Cuba or a Cuban national, other than 
those described in paragraph (d)(1) of this section, are authorized, 
except that nothing in this section authorizes the debiting of any 
blocked account or the transfer of any blocked property.
    (e) Payments for legal services from funds originating outside the 
United States authorized. Receipts of payment of professional fees and 
reimbursement of incurred expenses for the provision of legal services 
authorized pursuant to Sec.  515.512(a) to or on behalf of 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, are authorized from funds originating outside the United 
States, provided that:
    (1) The funds received by persons subject to U.S. jurisdiction as 
payment of professional fees and reimbursement of incurred expenses for 
the provision of legal services authorized pursuant to paragraph (a) of 
this section do not originate from:
    (i) A source within the United States;
    (ii) Any source, wherever located, within the possession or control 
of a person subject to U.S. jurisdiction; or
    (iii) Any person, other than the person on whose behalf the legal 
services authorized pursuant to paragraph (a) of this section are to be 
provided, whose property and interests in property are blocked pursuant 
to any part of this chapter other than part 515.
    (2) Reports. (i) Persons subject to U.S. jurisdiction who receive 
payments in connection with legal services authorized pursuant to 
paragraph (a) of this section must submit annual reports no later than 
30 days following the end of the calendar year during which the 
payments were received providing information on the funds received. 
Such reports shall specify:
    (A) The individual or entity from whom the funds originated and the 
amount of funds received; and
    (B) If applicable:
    (1) The names of any individuals or entities providing related 
services to the person subject to U.S. jurisdiction receiving payment 
in connection with authorized legal services, such as private 
investigators or expert witnesses;
    (2) A general description of the services provided; and
    (3) The amount of funds paid in connection with such services.
    (ii) The reports, which must reference this section, are to be 
mailed to: Department of the Treasury, Office of Foreign Assets 
Control, Attn: Licensing Division, 1500 Pennsylvania Avenue NW., Annex, 
Washington, DC 20220.

    Note 1 to Sec.  515.512: Persons subject to U.S. jurisdiction 
who receive payments in connection with legal services authorized 
pursuant to Sec.  515.512(a) do not need to obtain specific 
authorization to contract for related services that are ordinarily 
incident to the provision of those legal services, such as those 
provided by private investigators or expert witnesses, or to pay for 
such services. This does not authorize the hiring of Cuban 
nationals. Additionally, persons subject to U.S. jurisdiction do not 
need to obtain specific authorization to provide related services 
that are ordinarily incident to the provision of legal services 
authorized pursuant to Sec.  515.512(a).


    Note 2 to Sec.  515.512:  See Sec. Sec.  515.527 and 515.528 for 
general licenses authorizing fees due to attorneys in connection 
with certain intellectual property-related transactions. See Sec.  
515.588 for a general license authorizing the receipt of, and 
payment for, certain legal services from Cuba or a Cuban national.

Sec.  515.522  [Removed and Reserved]

0
9. Remove and reserve Sec.  515.522.

0
10. Revise Sec.  515.523 to read as follows:


Sec.  515.523  Transactions incident to the administration of 
decedents' estates.

    All transactions incident to the administration and distribution of 
the assets of a blocked estate of a decedent are authorized. Such 
transactions include the appointment and qualification of a personal 
representative in the United States or Cuba, collection and 
preservation of assets by a personal representative and associated 
fees, payment of funeral expenses and expenses of the last illness, 
transfer of title, and distribution of assets pursuant to a valid 
testamentary disposition or intestate succession. All property 
distributed pursuant to this section is unblocked, provided that 
neither Cuba nor a Cuban national (other than the decedent or a person 
unblocked pursuant to Sec.  515.505) has an interest in the property.

    Note to Sec.  515.523:  See Sec.  515.570(f)(1) for a general 
license authorizing funds deposited in a blocked bank account in a 
banking institution, as defined in Sec.  515.314, as a result of 
certain administration of decedents' estates to be remitted to a 
national of Cuba.


0
11. Amend Sec.  515.524 by revising paragraphs (a) and (b), removing 
paragraph (c), redesignating paragraph (d) as paragraph (c), and adding 
a Note to paragraph (b) to read as follows:


Sec.  515.524  Payment from and transactions in the administration of 
certain trusts.

    (a) Any bank or trust company incorporated under the laws of the 
United States, or of any State, territory, possession, or district of 
the United States, or any private bank subject to supervision and 
examination under the banking laws of any State of the United States, 
acting as trustee of a trust created by gift, donation, or bequest and 
administered in the United States, in which one or more persons who are 
designated nationals have an interest, beneficial or otherwise, or are 
co-trustees, is hereby authorized to engage in the following 
transactions:
    (1) Payments of distributive shares of principal or income to all 
persons legally entitled thereto.
    (2) Other transactions arising in the administration of such trust 
which might be engaged in if no Cuban national were a beneficiary or 
co-trustee of such trust.
    (b) This section does not authorize a trustee to engage in any 
other transaction at the request, or upon the instructions, of any 
beneficiary or co-trustee of such trust or other person who is a Cuban 
national.

    Note to paragraph (b): See Sec.  515.523 for a general license 
authorizing transactions incident to the administration of 
decedents' estates. See Sec.  515.570(f)(1) for a general license 
authorizing funds deposited in a blocked bank account in a banking 
institution as a result of certain administration of decedents' 
estates to be remitted to a national of Cuba.

* * * * *

0
12. Revise Sec.  515.525 to read as follows:

[[Page 56921]]

Sec.  515.525  Certain transfers as a consequence of the existence or 
change of marital status authorized.

    Any transfer of any dower, curtesy, community property, or other 
interest of any nature whatsoever, provided that such transfer arises 
solely as a consequence of the existence or change of marital status, 
is authorized.

0
13. Amend Sec.  515.533 by revising paragraph (d) to read as follows:


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

* * * * *
    (d) General license for travel-related transactions incident to 
exportation or reexportation of certain items. The travel-related 
transactions set forth in Sec.  515.560(c) and such additional 
transactions as are directly incident to the conduct of market 
research, commercial marketing, sales negotiation, accompanied 
delivery, installation, or servicing in Cuba of items consistent with 
the export or reexport licensing policy of the Department of Commerce 
are authorized, provided that the traveler's schedule of activities 
does not include free time or recreation in excess of that consistent 
with a full-time schedule.
* * * * *

0
14. Amend Sec.  515.542 by revising paragraph (a), redesignating 
paragraphs (e), (f), (g), and (h) as paragraphs (g), (h), (i), and (j), 
adding new paragraphs (e) and (f), and revising Notes 1 and 2 to Sec.  
515.542 to read as follows:


Sec.  515.542  Mail and telecommunications-related transactions.

    (a) All transactions, including payments, incident to the receipt 
or transmission of mail and parcels between the United States and Cuba 
are authorized, provided that the importation or exportation of such 
mail and parcels is exempt from or authorized pursuant to this part.
* * * * *
    (e) Persons subject to U.S. jurisdiction are authorized to enter 
into licensing agreements related to services authorized by paragraphs 
(b) through (d) of this section, and to market such services.
    (f) Except for transactions prohibited by Sec.  515.208, persons 
subject to U.S. jurisdiction are authorized to engage in all 
transactions necessary to establish and maintain a business presence in 
Cuba, including through subsidiaries, branches, offices, joint 
ventures, franchises, and agency or other business relationships with 
any Cuban national, and to enter into all necessary agreements or 
arrangements with such entity or individual, for the purpose of 
engaging in the activities authorized in paragraphs (b) through (e) of 
this section.
* * * * *

    Note 1 to Sec.  515.542:  For an authorization of travel-related 
transactions that are directly incident to the conduct of market 
research, commercial marketing, sales negotiation, accompanied 
delivery, installation, or servicing in Cuba of items consistent 
with the export or reexport policy of the Department of Commerce, 
see Sec.  515.533(d). For an authorization of travel-related 
transactions that are directly incident to participation in 
professional meetings, including where such meetings relate to 
telecommunications services or other activities authorized by 
paragraphs (b) through (f) of this section, see Sec.  515.564(a).


    Note 2 to Sec.  515.542: For a general license authorizing a 
physical presence in Cuba for certain persons, see Sec.  515.573. 
For an authorization of certain internet-related services, see Sec.  
515.578.



0
15. Revise Sec.  515.544 to read as follows:


Sec.  515.544  Certain gifts sent to the United States.

    The importation into the United States of merchandise from Cuba or 
Cuban-origin merchandise from a third country intended as gifts is 
authorized, provided that the value of the merchandise is not more than 
$100; the merchandise is of a type and in quantities normally given as 
gifts between individuals; the merchandise is sent and not carried by a 
traveler (including as accompanied or unaccompanied baggage); and the 
merchandise is not alcohol or tobacco products.

    Note to Sec.  515.544:  See Sec.  515.533 for a general license 
authorizing transactions ordinarily incident to exports of items 
from the United States that are licensed or otherwise authorized by 
the Department of Commerce, which may include gifts sent to Cuba.



0
16. Revise Sec.  515.548 to read as follows:


Sec.  515.548  Overflight payments, emergency landings, and air 
ambulance services authorized.

    (a) The receipt of, and payment of charges for, services rendered 
by Cuba or a Cuban national in connection with overflights of Cuba or 
emergency landings in Cuba by aircraft registered in the United States 
or owned or controlled by, or chartered to, persons subject to U.S. 
jurisdiction are authorized.
    (b) Persons subject to U.S. jurisdiction are authorized to engage 
in all transactions necessary to provide air ambulance and related 
medical services, including medical evacuation from Cuba, for 
individual travelers in Cuba, regardless of nationality or the purpose 
of the individual's travel to Cuba.

    Note to paragraph (b):  Persons providing air ambulance services 
authorized by paragraph (b) are authorized to carry persons who are 
close relatives, as defined in Sec.  515.539, of the subject of the 
evacuation.



0
17. Amend Sec.  515.550 by revising paragraphs (a), (c), and (d), 
adding a Note to paragraph (a), removing the Note to paragraph (d), and 
adding paragraph (e) to read as follows:


Sec.  515.550  Certain vessel transactions authorized.

* * * * *
    (a) Engaging or has engaged in trade with Cuba authorized pursuant 
to this part;

    Note to paragraph (a):  The authorization in this paragraph 
includes, for example, trade with Cuba authorized pursuant to 
Sec. Sec.  515.533, 515.559, or 515.582, or by specific license.

* * * * *
    (c) Engaging or has engaged in the exportation or re-exportation to 
Cuba from a third country of agricultural commodities, medicine, or 
medical devices that would be designated as EAR99 under the Export 
Administration Regulations (15 CFR parts 730 through 774), if they were 
located in the United States;
    (d) A foreign vessel that has entered a port or place in Cuba while 
carrying students, faculty, and staff that are authorized to travel to 
Cuba pursuant to Sec.  515.565(a); or
    (e) Carrying or has carried persons between the United States and 
Cuba or within Cuba pursuant to the authorization in Sec.  
515.572(a)(2) or, in the case of a vessel used solely for personal 
travel (and not transporting passengers), pursuant to a license or 
other authorization issued by the Department of Commerce for the 
exportation or reexportation of the vessel to Cuba.

0
18. Amend Sec.  515.559 by revising paragraph (d) and Note 2 to Sec.  
515.559 to read as follows:


Sec.  515.559  Certain export and import transactions by U.S.-owned or 
-controlled foreign firms.

* * * * *
    (d) General license. Travel-related transactions set forth in Sec.  
515.560(c) and such other transactions as are directly incident to 
market research, commercial marketing, sales negotiation, accompanied 
delivery, installation, or servicing of exports that are consistent

[[Page 56922]]

with the licensing policy under paragraph (a) of this section are 
authorized, provided that the traveler's schedule of activities does 
not include free time or recreation in excess of that consistent with a 
full-time schedule.
* * * * *

    Note 2 to Sec.  515.559:  See Sec.  515.585 for provisions 
related to certain transactions by persons subject to U.S. 
jurisdiction with certain Cuban nationals in third countries.



0
19. Amend Sec.  515.560 by revising paragraph (c)(4), adding paragraph 
(c)(6) and a Note to paragraph (c)(6), and revising paragraph (d)(2) to 
read as follows:


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

* * * * *
    (c) * * *
    (4) Carrying remittances to Cuba. The carrying to Cuba of any 
remittances that the licensed traveler is authorized to remit pursuant 
to Sec.  515.570 is authorized, provided that no emigration-related 
remittances authorized by Sec.  515.570(e) are carried to Cuba unless a 
U.S. immigration visa has been issued for each payee and the licensed 
traveler can produce the visa recipients' full names, dates of birth, 
visa numbers, and visa dates of issuance.
* * * * *
    (6)(i) Opening and maintaining bank accounts. All transactions 
incident to the opening and maintenance of accounts, including the 
deposit of funds in such accounts by wire transfer, at a financial 
institution in Cuba are authorized, provided that such accounts are 
used only while the traveler is located in Cuba and for the purpose of 
accessing funds in Cuba for transactions authorized pursuant to, or 
exempt from, this part.
    (ii) Closing bank accounts. All transactions incident to the 
closing of accounts opened pursuant to the authorization in paragraph 
(c)(6)(i) of this section are authorized, provided that any transfer of 
funds may only be effected by wire transfer to an account maintained at 
a depository institution, as defined in Sec.  515.533, that is a person 
subject to U.S. jurisdiction.

    Note to paragraph (c)(6):  Account(s) authorized by this general 
license may only be accessed while the account holder is located in 
Cuba for travel authorized pursuant to this part. The account(s) may 
not be accessed or utilized by the account holder unless the account 
holder is located in Cuba and is engaging in authorized 
transactions. The account(s) may be maintained but not accessed 
while the account holder is located outside of Cuba other than for 
the purpose of funding or closing the bank account as authorized in 
paragraph (c)(6).

    (d) * * *
    (2) Funds received as remittances pursuant to Sec.  515.570 by the 
Cuban national during his or her stay in the United States; and
* * * * *
0
20. Amend Sec.  515.561 by revising paragraph (a) to read as follows:


Sec.  515.561  Family visits.

    (a) General license. 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 such additional 
transactions as are directly incident to: visiting a close relative, as 
defined in Sec.  515.339, who is a national of Cuba or a person 
ordinarily resident in Cuba; or visiting a close relative located in 
Cuba or accompanying a close relative traveling to Cuba pursuant to the 
authorizations in Sec.  515.562 (official government business), Sec.  
515.563 (journalistic activity), Sec.  515.564(a) (professional 
research), Sec.  515.565(a)(1) through (4) and (6) (educational 
activities), Sec.  515.566 (religious activities), Sec.  515.575 
(humanitarian projects), or Sec.  515.576 (activities of private 
foundations or research or educational institutes).

    Note to paragraph (a): Each person relying on the general 
authorization in this paragraph must retain specific records related 
to the authorized travel transactions. See Sec. Sec.  501.601 and 
501.602 of this chapter for applicable recordkeeping and reporting 
requirements.

* * * * *

0
21. Amend Sec.  515.565 by:
0
a. Revising the introductory text to paragraph (a);
0
b. Revising the Note to paragraph (a)(5);
0
c. Revising paragraph (a)(7);
0
d. Redesignating paragraphs (a)(8) and (9) as (a)(11) and (12);
0
e. Adding new paragraphs (a)(8), (9), and (10);
0
f. Revising newly redesignated paragraphs (a)(11) and (12);
0
g. Revising Notes 1 and 2 to paragraph (a); and
0
h. Adding Note 3 to paragraph (a) to read as follows:


Sec.  515.565  Educational activities.

    (a) General license for educational activities. Persons subject to 
U.S. jurisdiction, including U.S. academic institutions and their 
faculty, staff, and students, are authorized to engage in transactions, 
including the travel-related transactions set forth in Sec.  
515.560(c), that are related to the following activities:
* * * * *

    Note to paragraph (a)(5):  See Sec.  515.571(a) for 
authorizations related to certain banking transactions by Cuban 
nationals present in the United States in a non-immigrant status or 
pursuant to other non-immigrant travel authorization issued by the 
U.S. government.

* * * * *
    (7) Sponsorship or co-sponsorship of non commercial academic 
seminars, conferences, symposia, and workshops related to Cuba or 
global issues involving Cuba and attendance at such events by faculty, 
staff, and students of a participating U.S. academic institution;
    (8) Establishment of academic exchanges and joint non-commercial 
academic research projects with universities or academic institutions 
in Cuba;
    (9) Provision of standardized testing services, including 
professional certificate examinations, university entrance 
examinations, and language examinations, and related preparatory 
services for such exams, to Cuban nationals, wherever located;
    (10) Provision of internet-based courses, including distance 
learning and Massive Open Online Courses, to Cuban nationals, wherever 
located, provided that the course content is at the undergraduate level 
or below; or
    (11) The organization of, and preparation for, activities described 
in paragraphs (a)(1) through (10) of this section by employees or 
contractors of the sponsoring organization that is a person subject to 
U.S. jurisdiction;
    (12) Facilitation by an organization that is a person subject to 
U.S. jurisdiction, or a member of the staff of such an organization, of 
licensed educational activities in Cuba on behalf of U.S. academic 
institutions or secondary schools, provided that:
    (i) The organization is directly affiliated with one or more U.S. 
academic institutions or secondary schools; and
    (ii) The organization facilitates educational activities that meet 
the requirements of one or more of the general licenses set forth in 
Sec.  515.565(a)(1), (2), (3), and (6).

    Note 1 to paragraph (a):  See Sec.  515.560(c)(6) for an 
authorization for individuals to open and maintain accounts at Cuban 
financial institutions; see Sec.  515.573 for an authorization for 
entities conducting educational activities authorized by Sec.  
515.565(a) to establish a physical presence in Cuba, including an 
authorization to open

[[Page 56923]]

and maintain accounts at Cuban financial institutions.


    Note 2 to paragraph (a): The authorization in this paragraph 
extends to adjunct faculty and part-time staff of U.S. academic 
institutions. A student enrolled in a U.S. academic institution is 
authorized pursuant to Sec.  515.565(a)(1) to participate in the 
academic activities in Cuba described above through any sponsoring 
U.S. academic institution.


    Note 3 to paragraph (a):  The export or reexport to Cuba of 
goods (including software) or technology subject to the Export 
Administration Regulations (15 CFR parts 730 through 774) may 
require separate authorization from the Department of Commerce.

* * * * *

0
22. Amend Sec.  515.566 by revising the Note to Sec.  515.566 to read 
as follows:


Sec.  515.566  Religious activities in Cuba.

* * * * *

    Note to Sec.  515.566: See Sec.  515.573 for an authorization 
permitting religious organizations engaging in activities authorized 
pursuant to this section to establish a physical presence in Cuba, 
including an authorization to open and maintain accounts at Cuban 
financial institutions.



0
23. Amend Sec.  515.570 by revising paragraphs (b) and (f)(1), 
redesignating paragraph (h) as paragraph (i), adding new paragraph (h), 
and revising Note 2 to Sec.  515.570 to read as follows:


Sec.  515.570  Remittances.

* * * * *
    (b) Donative remittances to Cuban nationals authorized. Persons 
subject to the jurisdiction of the United States are authorized to make 
donative remittances to Cuban nationals, provided that:
    (1) The remittances are not made from a blocked source;
    (2) The recipient 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;
    (3) The remittances are not made for emigration-related purposes. 
Remittances for emigration-related purposes are addressed by paragraph 
(e) of this section; and
    (4) The remitter, if an individual, is 18 years of age or older.
* * * * *
    (f) * * *
    (1) Funds deposited in a blocked account in a banking institution, 
as defined in Sec.  515.314, 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 to that 
national of Cuba, provided that the remittances are not made for 
emigration-related purposes. Remittances for emigration-related 
purposes are addressed by paragraph (e) of this section .
* * * * *
    (h) Unblocking of certain previously blocked remittances 
authorized. Banking institutions, as defined in Sec.  515.314, are 
authorized to engage in all transactions necessary to unblock and 
return remittances if they would have qualified as authorized had they 
been sent under current paragraph (b) of this section, provided that 
persons subject to U.S. jurisdiction unblocking remittances originally 
blocked on or after August 25, 1997 pursuant to this section must 
submit a report to the Department of the Treasury, Office of Foreign 
Assets Control, Attn: Sanctions Compliance & Evaluation Division, 1500 
Pennsylvania Avenue NW., Annex, Washington, DC 20220 within 10 business 
days from the date such remittances are released. Such reports shall 
include the following:
    (1) Where available, a copy of the original blocking report filed 
with OFAC pursuant to Sec.  501.603(b)(1) of this chapter.
    (2) The date the unblocked remittance was released;
    (3) The amount of funds unblocked;
    (4) The name of the party to whom the remittance was released; and
    (5) A reference to this section as the legal authority under which 
the remittance was unblocked and returned.
* * * * *

    Note 2 to Sec.  515.570:  For the rules relating to the carrying 
of remittances to Cuba, see Sec.  515.560(c)(4). See Sec.  515.572 
for an authorization related to the collection, forwarding, or 
receipt of certain remittances to or from Cuba.



0
24. Amend Sec.  515.571 by revising the Note to paragraph (a)(5), 
redesignating paragraphs (b) and (c) as paragraphs (c) and (d), adding 
new paragraph (b), and revising redesignated paragraph (c) to read as 
follows:


Sec.  515.571  Certain transactions incident to travel to, from, and 
within the United States by Cuban nationals.

* * * * *

    Note to paragraph (a)(5):  This paragraph authorizes depository 
institutions, as defined in Sec.  515.333, to open and maintain 
accounts solely in the name of a Cuban national who is present in 
the United States in a non-immigrant status or pursuant to other 
non-immigrant travel authorization for use while the Cuban national 
is located in the United States in such status, and to close such 
accounts prior to departure. See Sec.  515.571(b) for an 
authorization for depository institutions to maintain accounts 
opened pursuant to this paragraph while the Cuban national is 
located outside the United States.

* * * * *
    (b) Maintenance of accounts opened pursuant to paragraph (a)(5) of 
this section while the Cuban-national account holder is located outside 
the United States is authorized, provided that the Cuban-national 
account holder may only access the account pursuant to paragraph (a)(5) 
of this section when the Cuban-national account holder is lawfully 
present in the United States in a non-immigrant status or pursuant to 
other non-immigrant travel authorization issued by the U.S. government.
    (c) Payments and transfers of credit in the United States from 
blocked accounts in domestic banking institutions held in the name of a 
Cuban national who is present in the United States in a non-immigrant 
status or pursuant to other non-immigrant travel authorization issued 
by the U.S. government to or upon the order of such Cuban national are 
authorized, provided that such payments and transfers of credit are 
made only for the living, traveling, and similar personal expenses in 
the United States of such Cuban national or his or her family, or other 
transactions ordinarily incident to the Cuban national's presence in 
the United States in a non-immigrant status or pursuant to other non-
immigrant travel authorization issued by the U.S. government.
* * * * *

0
25. Amend Sec.  515.572 by revising paragraphs (a)(2) and (3), adding 
new paragraph (a)(4), revising paragraph (c), and adding a new Note to 
Sec.  515.572 to read as follows:


Sec.  515.572  Authorization to provide travel services, carrier 
services, and remittance forwarding services.

    (a) * * *
    (2) Authorization to provide carrier services. Persons subject to 
U.S. jurisdiction are authorized to provide carrier services, to, from, 
or within Cuba in connection with travel or transportation between the 
United States and Cuba of persons, baggage, or cargo authorized 
pursuant to this part.
* * * * *
    (3) Authorization to provide remittance forwarding services. 
Banking institutions, as defined in Sec.  515.314, including U.S.-
registered brokers or

[[Page 56924]]

dealers in securities and U.S.-registered money transmitters, are 
authorized to provide services in connection with the collection, 
forwarding, or receipt of remittances authorized pursuant to this part.
    (4) Authorization to provide lodging services. Persons subject to 
U.S. jurisdiction who are providing carrier services by vessel 
authorized pursuant to paragraph (a)(2) of this section are authorized 
to provide lodging services onboard such vessels to persons authorized 
to travel to or from Cuba pursuant to this part during the period of 
time the vessel is traveling to, from, or within Cuba, including when 
docked at a port in Cuba.
* * * * *
    (c) Specific licenses. Specific licenses may be issued on a case-
by-case basis authorizing the provision of travel, carrier, or 
remittance-forwarding services other than those authorized by paragraph 
(a) of this section.

    Note to Sec.  515.572: The following persons may be transported 
between the United States and Cuba by a person authorized to provide 
carrier services:

    (1) Persons subject to U.S. jurisdiction who are traveling to or 
from Cuba pursuant to a general license under one of the 12 categories 
of travel listed in Sec.  515.560 or under a specific license from the 
Office of Foreign Assets Control may be transported between the United 
States and Cuba;
    (2) Cuban nationals applying for admission to the United States, as 
well as third-country nationals, with a valid visa or other travel 
authorization issued by the U.S. government may be transported to the 
United States from Cuba;
    (3) Cuban nationals present in the United States in a non-immigrant 
status or pursuant to other non-immigrant travel authorization issued 
by the U.S. government may be transported from the United States to 
Cuba;
    (4) Cuban nationals who have taken up residence in the United 
States and are licensed as unblocked nationals pursuant to Sec.  
515.505(a)(1) are persons subject to U.S. jurisdiction and may be 
transported between the United States and Cuba if they meet the 
criteria set out in (1) above; and
    (5) An individual, including a foreign national, who is traveling 
on official business of the U.S. government, a foreign government, or 
an intergovernmental organization of which the United States is a 
member or in which the United States holds observer status--including 
an employee, contractor, or grantee of such government or 
intergovernmental organization and any individual traveling on a 
diplomatic passport, as well as any close relative, as defined in Sec.  
515.339, accompanying the traveler--may be transported between the 
United States and Cuba.

0
26. Revise Sec.  515.573 to read as follows:


Sec.  515.573  Physical presence in Cuba authorized; Cuban news 
bureaus.

    (a) All transactions necessary to establish and maintain a physical 
presence in Cuba by persons subject to U.S. jurisdiction to engage in 
transactions authorized pursuant to or exempt from the prohibitions of 
this part that are identified in paragraph (b) of this section are 
authorized, including the following:
    (1) Leasing physical premises, including office, warehouse, 
classroom, or retail outlet space, and securing related goods and 
services, including for use in and to pay fees related to the operation 
of the physical premises;
    (2) Marketing related to the physical presence;
    (3) Employment of Cuban nationals in Cuba; and
    (4) Employment of individuals who are persons subject to U.S. 
jurisdiction.

    Note to paragraph (a)(4):  Individuals who are employed pursuant 
to Sec.  515.573(a)(4) are authorized to engage in all transactions 
necessary to establish domicile in Cuba, including accessing U.S. 
assets, for the duration of their employment.

    (5)(i) Opening and maintaining bank accounts at Cuban financial 
institutions to engage in authorized transactions. The opening and 
maintenance of accounts, including the deposit of funds in such 
accounts by wire transfer, at a financial institution in Cuba, provided 
that such accounts are used only for transactions authorized pursuant 
to, or exempt from, this part.
    (ii) Closing bank accounts. The closing of an account opened 
pursuant to the authorization in paragraph (a)(5)(i) of this section, 
provided that any transfer of funds may only be effected by wire 
transfer to an account maintained at a depository institution, as 
defined in Sec.  515.333, that is a person subject to U.S. 
jurisdiction.

    Note to paragraph (a): Physical presence includes through a 
local representative, including an employee or contractor.

    (b) The following persons subject to U.S. jurisdiction may engage 
in the transactions authorized pursuant to paragraph (a) of this 
section, provided that such transactions may only be engaged in to 
support transactions authorized by or exempt from the prohibitions of 
this part:
    (1) News bureaus whose primary purpose is the gathering and 
dissemination of news to the general public authorized by paragraph (c) 
of this section;
    (2) Exporters of goods authorized for export or reexport to Cuba by 
Sec.  515.533 or Sec.  515.559 or that are otherwise exempt;
    (3) Entities providing mail or parcel transmission services 
authorized by Sec.  515.542(a) or providing cargo transportation 
services in connection with trade involving Cuba authorized by or 
exempt from the prohibitions of this part;
    (4) Providers of telecommunications services authorized by Sec.  
515.542(b) through (d) or persons engaged in activities authorized by 
Sec.  515.542(e);
    (5) Entities organizing or conducting educational activities 
authorized by Sec.  515.565(a);
    (6) Religious organizations engaging in religious activities in 
Cuba authorized by Sec.  515.566;
    (7) Providers of travel and carrier services authorized by Sec.  
515.572; and


    Note to paragraph (b)(7): This authorization does not allow 
persons subject to U.S. jurisdiction to establish a physical 
presence in Cuba for the purpose of providing lodging services in 
Cuba.

    (8) Providers of services authorized by Sec.  515.578.
    (c) News bureaus. (1) All transactions in Cuba related to the 
gathering and dissemination of news to the general public are 
authorized.
    (2) Specific licenses may be issued authorizing transactions 
necessary for the establishment and operation of news bureaus in the 
United States by Cuban organizations whose primary purpose is the 
gathering and dissemination of news to the general public.


    Note to Sec.  515.573: The export or reexport to Cuba of items 
subject to the Export Administration Regulations (15 CFR parts 730 
through 774) may require separate authorization from the Department 
of Commerce.



0
27. Amend Sec.  515.575 by revising paragraph (b) to read as follows:


Sec.  515.575  Humanitarian projects.

* * * * *
    (b) Authorized humanitarian projects. The following projects are 
authorized by paragraph (a) of this section: medical and health-related 
projects; construction projects intended to benefit legitimately 
independent civil society groups; disaster relief; historical 
preservation; environmental projects; projects involving formal or non-
formal

[[Page 56925]]

educational training, within Cuba or off-island, on the following 
topics: entrepreneurship and business, civil education, journalism, 
advocacy and organizing, adult literacy, or vocational skills; 
community-based grassroots projects; projects suitable to the 
development of small-scale private enterprise; projects that are 
related to agricultural and rural development that promote independent 
activity; microfinancing projects, except for loans, extensions of 
credit, or other financing prohibited by Sec.  515.208; and projects to 
meet basic human needs.
* * * * *

0
28. Amend Sec.  515.578 by revising the section heading and paragraphs 
(a)(2), (a)(4), and (b)(1), redesignating paragraph (c) as paragraph 
(f), and adding new paragraphs (c), (d), and (e) to read as follows:


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

    (a)* * *
    (2) Services related to certain exportations and reexportations. To 
the extent not authorized by paragraph (a)(1) of this section or by 
Sec.  515.533, the exportation or reexportation of services, including 
software design, business consulting, and information technology 
management services (including cloud storage), that are related to the 
following items, or of services to install, repair, or replace such 
items, and training related to installation, repair, or replacement of 
such items:
    (i) Items subject to the Export Administration Regulations (15 CFR 
part 730 through 774) (EAR). Items exported or reexported to Cuba 
pursuant to 15 CFR 740.19 (License Exception Consumer Communication 
Devices (License Exception CCD)), pursuant to 15 CFR 740.21(d)(4) 
(paragraph (d)(4) of License Exception Support for the Cuban People 
(License Exception SCP)), or pursuant to an individual license issued 
by the Department of Commerce for the export of other consumer 
communication devices that fall outside License Exception CCD or 
commodities or software used to develop software that fall outside 
paragraph (d)(4) of License Exception SCP;
    (ii) Items not subject to the EAR because they are of foreign 
origin and are located outside the United States. Items that are of a 
type described in License Exception CCD provided that the items would 
be designated EAR99 if they were located in the United States or would 
meet the criteria for classification under the relevant ECCN specified 
in License Exception CCD if they were subject to the EAR or items of a 
type described in paragraph (d)(4) of License Exception SCP, provided 
that the items would be designated EAR99 or controlled on the Commerce 
Control List for anti-terrorism reasons only if they were located in 
the United States; and
    (iii) Software not subject to the EAR because it is described in 15 
CFR 734.3(b)(3). Software not subject to the EAR because it is 
described in 15 CFR 734.3(b)(3) that is exported, reexported, or 
provided, directly or indirectly, by a person subject to U.S. 
jurisdiction to Cuba and that is of a type described in License 
Exception CCD or paragraph (d)(4) of License Exception SCP.
* * * * *
    (4) Exportation, reexportation, or provision of certain internet-
based services to certain end-users. (i) The exportation or 
reexportation, directly or indirectly, from the United States or by 
persons subject to U.S. jurisdiction, to 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, of services 
described in paragraphs (a)(1) or (2) of this section provided that 
such services are widely available to the public at no cost to the 
user.
    (ii) The exportation or reexportation, directly or indirectly, from 
the United States or by persons subject to U.S. jurisdiction, to 
organizations administered or controlled by the Government of Cuba or 
the Cuban Communist Party of the following services:
    (A) Services described in paragraph (a)(1) of this section, and
    (B) Services described in paragraph (a)(2) of this section provided 
that such services are widely available to the public at no cost to the 
user.
* * * * *
    (b) * * *
    (1) The direct or indirect exportation or reexportation of services 
with knowledge or reason to know that such services are intended for 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, or to organizations administered or 
controlled by the Government of Cuba or the Cuban Communist Party, 
except as specified in paragraph (a)(4) of this section.
* * * * *
    (c) Licensing and marketing. Persons subject to U.S. jurisdiction 
are authorized to enter into licensing agreements related to services 
authorized by paragraph (a) of this section, and to market such 
services.
    (d) Subsidiaries, joint ventures, and other business arrangements. 
Except for transactions prohibited by Sec.  515.208, persons subject to 
U.S. jurisdiction are authorized to engage in all transactions 
necessary to establish and maintain a business presence in Cuba, 
including through subsidiaries, branches, offices, joint ventures, 
franchises, and agency or other business relationships with any Cuban 
national, and to enter into all necessary agreements or arrangements 
with such entity or individual, for the purpose of engaging in the 
activities authorized by paragraph (a) or (c) of this section.
    (e) Mobile applications. (1) The importation into the United States 
of Cuban-origin mobile applications is authorized.


    Note to paragraph (e)(1):  This paragraph 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
29. Amend Sec.  515.582 by removing Note 1 to Sec.  515.582 and 
redesignating Note 2 to Sec.  515.582 as Note 1 to Sec.  515.582.
0
30. Amend Sec.  515.584 by adding paragraph (e) to read as follows:


Sec.  515.584  Certain financial transactions involving Cuba.

* * * * *
    (e) Unblocking of certain previously blocked funds transfers 
authorized. Any depository institution, as defined in Sec.  515.533, 
that is a person subject to U.S. jurisdiction is authorized to unblock 
and return to the originator or originating financial institution or 
their successor-in-interest previously blocked funds transfers that 
could have been rejected or processed pursuant to paragraphs (d)(1) or 
(2) of this section, Sec.  515.562(b), or Sec.  515.579(b) if the 
rejection or processing of those transfers would have been authorized 
had they been sent under the current text of those provisions, provided 
that persons subject to U.S. jurisdiction unblocking funds transfers 
originally blocked on or after August 25, 1997, pursuant to this 
section must submit a report to the Department of the Treasury, Office 
of Foreign Assets Control, Attn: Sanctions Compliance & Evaluation 
Division, 1500 Pennsylvania Avenue NW., Annex,

[[Page 56926]]

Washington, DC 20220 within 10 business days from the date such funds 
transfers are released. Such reports shall include the following:
    (1) Where available, a copy of the original blocking report filed 
with OFAC pursuant to Sec.  501.603(b)(1) of this chapter.
    (2) The date the unblocked funds transfer was released;
    (3) The amount of funds unblocked;
    (4) The name of the party to whom the funds were released; and
    (5) A reference to this section as the legal authority under which 
the funds transfer was unblocked and returned.

0
31. Amend Sec.  515.585 by revising the section heading, designating 
the undesignated paragraph as paragraph (a), revising newly designated 
paragraph (a), and adding paragraph (b) to read as follows:


Sec.  515.585  Certain transactions with certain Cuban nationals in 
third countries.

    (a) Persons subject to U.S. jurisdiction are authorized to provide 
goods and services to a Cuban national located in a third country who 
is an individual, provided that the transaction does not involve a 
commercial exportation, directly or indirectly, of goods or services to 
or from Cuba.
    (b)(1) Opening and maintaining bank accounts. Banking institutions, 
as defined in Sec.  515.314, are authorized to open and maintain 
accounts, including the deposit of funds in such accounts by wire 
transfer, for a Cuban national located in a third country who is an 
individual, provided that such accounts are used only while the Cuban 
national is located outside of Cuba and may not be used for 
transactions that involve a commercial exportation of goods or services 
to or from Cuba.
    (2) Closing bank accounts. Banking institutions, as defined in 
Sec.  515.314, are authorized to close an account opened pursuant to 
the authorization in paragraph (b)(1) of this section.
* * * * *

0
32. Amend Sec.  515.586 by revising paragraph (c) to read as follows:


Sec.  515.586  Cuban official missions in the United States.

* * * * *
    (c) Depository institutions, as defined in Sec.  515.333, are 
authorized to operate accounts for, extend credit to, and process funds 
transfers on behalf of the official missions of the Government of Cuba 
to the United States, and the official missions of the Government of 
Cuba to international organizations in the United States, and employees 
thereof, subject to the limitations in paragraphs (a) and (b) of this 
section and provided that any depository institution making use of the 
authorization in this section must submit a report to the Department of 
the Treasury, Office of Foreign Assets Control, Attn: Sanctions 
Compliance & Evaluation Division, 1500 Pennsylvania Ave NW., Annex, 
Washington, DC 20220, no later than 30 days following the establishment 
of the account. Such report shall include the name and address of the 
depository institution, the name of the account holder, and the account 
number.

0
33. Add Sec.  515.587 to subpart E to read as follows:


Sec.  515.587  Remittances from Cuban nationals to persons subject to 
U.S. jurisdiction.

    Persons subject to U.S. jurisdiction are authorized to receive 
remittances in the United States from Cuban nationals, wherever 
located, provided that the remitter 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.

    Note to Sec.  515.587: See Sec.  515.572 for an authorization to 
provide services related to the receipt of remittances authorized by 
this section.


0
34. Add Sec.  515.588 to subpart E to read as follows:


Sec.  515.588  Certain Cuban legal services authorized.

    (a) All transactions, including payments, ordinarily incident to 
receipt of the following legal services from Cuba or from a Cuban 
national are authorized: legal advice and counseling on the 
requirements of and compliance with the laws of Cuba or any 
jurisdiction within Cuba, provided that such advice and counseling 
relate to transactions authorized by or exempt from the prohibitions of 
this part.
    (b) The receipt of any other legal services from Cuba or a Cuban 
national, not otherwise authorized in this part, requires the issuance 
of a specific license.

0
35. Add Sec.  515.589 to subpart E to read as follows:


Sec.  515.589  Authorization of emergency medical services.

    The provision of nonscheduled emergency medical services in the 
United States to Cuban nationals is authorized.

    Dated: September 16, 2015.
John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2015-23587 Filed 9-18-15; 8:45 am]
 BILLING CODE 4810-AL-P