Cuban Assets Control Regulations, 51998-52004 [2017-24447]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control

[Federal Register Volume 82, Number 216 (Thursday, November 9, 2017)]
[Rules and Regulations]
[Pages 51998-52004]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24447]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 515


Cuban Assets Control Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is amending the Cuban Assets Control Regulations to 
implement the National Security Presidential Memorandum (NSPM), 
``Strengthening the Policy of the United States Toward Cuba,'' signed 
by the President on June 16, 2017. These amendments implement changes 
to the authorizations for travel to Cuba and related transactions and 
restrict certain financial transactions. These amendments also 
implement certain technical and conforming changes.

DATES: Effective: November 9, 2017.

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 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 Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (www.treasury.gov/ofac).

Background

    The Department of the Treasury issued the Cuban Assets Control 
Regulations, 31 CFR part 515 (the ``Regulations''), on July 8, 1963, 
under the Trading With the Enemy Act (50 U.S.C. 4301-41). OFAC has 
amended the Regulations on numerous occasions. Today, OFAC, the 
Department of Commerce's Bureau of Industry and Security, and the 
Department of State are taking coordinated actions to implement the 
NSPM, ``Strengthening the Policy of the United States Toward Cuba,'' 
signed by the President on June 16, 2017.
    OFAC is making amendments to the Regulations with respect to 
financial transactions, travel and related transactions, educational 
activities, support for the Cuban people, and certain other activities, 
as set forth below.

Financial Transactions

    Restrictions on direct financial transactions with certain entities 
and subentities. In accordance with section 3(a)(i) of the NSPM, the 
State Department is publishing a list of entities and subentities that 
are under the control of, or act for or on behalf of, the Cuban 
military, intelligence, or security service or personnel, and with 
which direct financial transactions would disproportionately benefit 
the Cuban military, intelligence, or security services or personnel at 
the expense of the Cuban people or private enterprise in Cuba--the 
State Department's List of Restricted Entities and Subentities 
Associated with Cuba (``Cuba Restricted List''). In accordance with 
section 3(a)(ii) of the NSPM, OFAC is adding new Sec.  515.209 to 
restrict direct financial transactions with entities and subentities 
listed on the Cuba Restricted List. OFAC is making conforming edits to 
Sec.  515.421 to clarify that transactions ordinarily incident to 
licensed transactions do not include direct financial transactions with 
such entities and subentities if the terms of the applicable general or 
specific license expressly exclude such direct financial transactions.
    In order to implement this prohibition, OFAC is adding 
corresponding language in the following general licenses: Sec. Sec.  
515.530, 515.534, 515.545, 515.560, 515.561, 515.564, 515.565, 515.566, 
515.567, 515.572, 515.573, 515.574, 515.576, 515.577, 515.578, 515.581, 
515.584, and 515.590. OFAC has not incorporated this prohibition into 
certain general licenses in accordance with the exceptions detailed in 
section 3(a)(iii) of the NSPM.

Travel and Related Transactions

    Educational travel. In accordance with section 3(b) of the NSPM, 
OFAC is revising the categories of educational travel currently set 
forth in Sec.  515.565(a)(1)-(6) to authorize travel that was permitted 
by regulation in effect on January 27, 2011.
    In addition, OFAC is adding the requirement set forth in the NSPM 
that certain categories of educational travel authorized by Sec.  
515.565(a), which were not permitted by regulation in effect on January 
27, 2011, take place under the auspices of an organization that is a 
person subject to U.S. jurisdiction. This requirement is incorporated 
in Sec.  515.565(a)(2). The same provision also now will require that 
all travelers must be accompanied by a person subject to U.S. 
jurisdiction who is an employee, paid consultant, agent, or other 
representative of the sponsoring organization, except in cases where 
the traveler is an employee, paid consultant, agent, or other 
representative traveling individually (not as part of a group), if the 
individual obtains a letter from the sponsoring organization. Such a 
letter must state that: (1) The individual is traveling to Cuba as an 
employee, paid consultant, agent, or other representative (including 
specifying the responsibilities of the individual that make him or her 
a representative) of the sponsoring organization; (2) the individual is 
acting for or on behalf of, or otherwise representing, the sponsoring 
organization; and (3) the individual's travel to Cuba is related to his 
or her role at the sponsoring organization.
    In addition, OFAC is adding a ``grandfathering'' provision in Sec.  
515.565(d) to authorize certain travel that previously was authorized 
where the traveler has already completed at least one travel-related 
transaction (such as purchasing a flight or reserving accommodation) 
prior to November 9, 2017.
    People-to-people educational travel. In accordance with section 
3(b)(ii) of the NSPM, OFAC is amending Sec.  515.565(b) to require that 
people-to-people educational travel be conducted under the auspices of 
an organization that is subject to U.S. jurisdiction and that sponsors 
such exchanges to promote

[[Page 51999]]

people-to-people contact, and that such travelers be accompanied by a 
person subject to U.S. jurisdiction who is an employee, paid 
consultant, agent, or other representative of the sponsoring 
organization. Travel-related transactions authorized pursuant to this 
section must be for the purpose of engaging, while in Cuba, in a full-
time schedule of activities that enhance contact with the Cuban people, 
support civil society in Cuba, or promote the Cuban people's 
independence from Cuban authorities; and result in meaningful 
interactions with individuals in Cuba. In addition, OFAC is adding a 
``grandfathering'' provision in Sec.  515.565(e) to authorize certain 
people-to-people travel that previously was authorized where the 
traveler has already completed at least one travel-related transaction 
(such as purchasing a flight or reserving accommodation) prior to June 
16, 2017.
    Support for the Cuban people. In accordance with section 3(b)(ii) 
of the NSPM, OFAC is amending Sec.  515.574 to require that each 
traveler engage in a full-time schedule of activities that result in 
meaningful interaction with individuals in Cuba and that enhance 
contact with the Cuban people, support civil society in Cuba, or 
promote the Cuban people's independence from Cuban authorities.

Other Amendments

    Definition of prohibited officials of the Government of Cuba. In 
accordance with section 3(d) of the NSPM, OFAC is amending the 
definition of the term prohibited officials of the Government of Cuba 
in Sec.  515.337 to include certain additional individuals. The revised 
definition corresponds to that which was in place prior to October 17, 
2016.

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, as well as the provisions of Executive Order 13771, are 
inapplicable. Because no notice of proposed rulemaking is required for 
this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not 
apply.

Paperwork Reduction Act

    The collections of information related to the Regulations are 
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties 
Regulations'') and Sec.  515.572 of this part. Pursuant to the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3507), those collections of 
information are covered by the Office of Management and Budget under 
control numbers 1505-0164, 1505-0167, and 1505-0168. An agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information unless the collection of information displays 
a valid control number.

List of Subjects in 31 CFR Part 515

    Administrative practice and procedure, Banking, Blocking of assets, 
Cuba, Financial transactions, Reporting and recordkeeping requirements, 
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. 4301-4341; Pub. L. 101-410, 104 Stat. 890 (28 
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. Add Sec.  515.209 to subpart B to read as follows:


Sec.  515.209   Restrictions on direct financial transactions with 
certain entities and subentities.

    (a) Except as otherwise authorized pursuant to this part, no person 
subject to U.S. jurisdiction may engage in a direct financial 
transaction with any person that the Secretary of State has identified 
as an entity or subentity that is under the control of, or acts for or 
on behalf of, the Cuban military, intelligence, or security services or 
personnel and with which direct financial transactions would 
disproportionately benefit such services or personnel at the expense of 
the Cuban people or private enterprise in Cuba. For purposes of this 
prohibition, a person engages in a direct financial transaction by 
acting as the originator on a transfer of funds whose ultimate 
beneficiary is an entity or subentity on the State Department's List of 
Restricted Entities and Subentities Associated with Cuba (``Cuba 
Restricted List'') or as the ultimate beneficiary on a transfer of 
funds whose originator is an entity or subentity on the Cuba Restricted 
List, including a transaction by wire transfer, credit card, check, or 
payment of cash. This prohibition does not apply to certain 
transactions set forth in paragraphs (b) and (c) of this section.

    Note to paragraph (a): The names of entities and subentities 
that the Secretary of State has identified as meeting the criteria 
set forth in this section are published in the Federal Register and 
incorporated into the Cuba Restricted List. Entities or subentities 
that are owned or controlled by another entity or subentity on this 
list are not treated as restricted unless also specified by name on 
the Cuba Restricted List. The Cuba Restricted List is maintained by 
the State Department and will be published in the Federal Register. 
It is also accessible through the following page on the State 
Department's Web site: https://www.state.gov/e/eb/tfs/spi/cuba/cubarestrictedlist/index.htm.

    (b) The prohibition in paragraph (a) of this section does not apply 
to any travel-related transactions, including those that involve direct 
financial transactions with an entity or subentity on the Cuba 
Restricted List, provided those travel-related transactions were 
initiated prior to the date that entity or subentity was added to the 
Cuba Restricted List as published in the Federal Register.
    (c) The prohibition in paragraph (a) of this section does not apply 
to any transactions related to commercial engagements that involve 
direct financial transactions with an entity or subentity on the Cuba 
Restricted List, provided those commercial engagements were in place 
prior to the date that entity or subentity was added to the Cuba 
Restricted List as published in the Federal Register.

    Note to Sec.  515.209: This section does not prohibit a person 
subject to U.S. jurisdiction from participating in an indirect 
financial transaction, such as those authorized pursuant to Sec.  
515.584(d) relating to funds transfers or Sec.  515.584(g) relating 
to U.S. dollar monetary instruments, where the person does not act 
as the originator or beneficiary on a transfer of funds.

Subpart C--Definitions

0
3. Revise Sec.  515.337 to read as follows:


Sec.  515.337   Prohibited officials of the Government of Cuba.

    For purposes of this part, the term prohibited officials of the 
Government of Cuba means Ministers and Vice-Ministers; members of the 
Council of State and the Council of Ministers; members and employees of 
the National Assembly of People's Power; members of any provincial 
assembly; local sector chiefs of the Committees for the Defense

[[Page 52000]]

of the Revolution; Director Generals and sub-Director Generals and 
higher of all Cuban ministries and state agencies; employees of the 
Ministry of the Interior (MININT); employees of the Ministry of Defense 
(MINFAR); secretaries and first secretaries of the Confederation of 
Labor of Cuba (CTC) and its component unions; chief editors, editors, 
and deputy editors of Cuban state-run media organizations and programs, 
including newspapers, television, and radio; and members and employees 
of the Supreme Court (Tribuno Supremo Nacional).

Subpart D--Interpretations

0
4. Amend Sec.  515.421 by removing the text ``or'' at the end of 
paragraph (a)(3), removing the period at the end of the introductory 
text to paragraph (a)(4) and adding the text ``; or'' in its place, and 
adding paragraph (a)(5) to read as follows:


Sec.  515.421   Transactions ordinarily incident to a licensed 
transaction.

    (a) * * *
    (5) A direct financial transaction prohibited by Sec.  515.209, 
where the terms of the applicable general or specific license expressly 
exclude such a transaction.
* * * * *

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

0
5. Amend Sec.  515.530 by adding paragraph (d) to read as follows:


Sec.  515.530   Exportation of powers of attorney or instructions 
relating to certain types of transactions.

* * * * *
    (d) Certain direct financial transactions restricted. Nothing in 
this section authorizes a direct financial transaction prohibited by 
Sec.  515.209.

0
6. Amend Sec.  515.533 by revising paragraph (b) to read as follows:


Sec.  515.533   Exportations from the United States to Cuba; 
reexportation to Cuba; importation and servicing or repair of certain 
items previously exported or reexported to Cuba.

* * * * *
    (b) Importation of certain items previously exported to Cuba; 
servicing and repair of such items. All transactions ordinarily 
incident to the importation into the United States or a third country 
of items previously exported from the United States to Cuba or exported 
or reexported from a third country to Cuba, and the servicing and 
repair of such items, are authorized, provided that:
    (1) The items previously were exported or reexported to Cuba 
pursuant to paragraph (a) of this section or Sec.  515.559; and
    (2) The items are being imported into the United States or a third 
country either:
    (i) In order to service or repair them before they are exported or 
reexported back to Cuba, or
    (ii) To return them to the United States or a third country.

    Note to paragraph (b): This paragraph does not authorize the 
exportation or reexportation of any item to Cuba. The exportation or 
reexportation of serviced, repaired, or replacement items to Cuba 
must be separately authorized pursuant to paragraph (a) of this 
section or Sec.  515.559, in addition to any Department of Commerce 
authorization that may be required.

* * * * *

0
7. Amend Sec.  515.534 by adding paragraph (c) to read as follows:


Sec.  515.534   Negotiation of, and entry into, contingent contracts 
relating to transactions prohibited by this part.

* * * * *
    (c) Certain direct financial transactions restricted. Nothing in 
this section authorizes a direct financial transaction prohibited by 
Sec.  515.209.
* * * * *

0
8. Amend Sec.  515.545 by redesignating paragraph (c) as paragraph (d) 
and adding new paragraph (c) to read as follows:


Sec.  515.545   Transactions related to information and informational 
materials.

* * * * *
    (c) Certain direct financial transactions restricted. Nothing in 
paragraphs (a) or (b) of this section authorizes a direct financial 
transaction prohibited by Sec.  515.209.
* * * * *

0
9. Amend Sec.  515.560 by revising the introductory text to paragraph 
(c), revising paragraph (c)(1), redesignating paragraph (d) as 
paragraph (e), and adding new paragraph (d) to read as follows:


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

* * * * *
    (c) Except as provided in paragraph (d) of this section, persons 
generally or specifically licensed under this part to engage in 
transactions in connection with travel to, from, and within Cuba may 
engage in the following transactions:
    (1) Transportation to, from, and within Cuba; Cuban visas. All 
transportation-related transactions ordinarily incident to travel to, 
from, and within Cuba, including the acquisition of Cuban visas, are 
authorized.
* * * * *
    (d) Nothing in paragraphs (c)(2), (c)(3), and (c)(6)(i) of this 
section authorizes a direct financial transaction prohibited by Sec.  
515.209 if the terms of the applicable general or specific license 
expressly exclude such a transaction.
* * * * *

0
10. Amend Sec.  515.561 by removing the text ``Sec.  515.565(a)(1) 
through (4) and (6)'' and adding in its place the text ``Sec.  
515.565(a)(1)(i) through (iv) and (vi)'' and adding a sentence at the 
end of paragraph (a) to read as follows:


Sec.  515.561   Family visits.

    (a) * * * Nothing in this paragraph authorizes a direct financial 
transaction prohibited by Sec.  515.209.
* * * * *

0
11. Amend Sec.  515.564 by redesignating paragraph (c) as paragraph (d) 
and adding new paragraph (c) to read as follows:


Sec.  515.564   Professional research and professional meetings in 
Cuba.

* * * * *
    (c) Certain direct financial transactions restricted. Nothing in 
paragraph (a) of this section authorizes a direct financial transaction 
prohibited by Sec.  515.209.
* * * * *

0
12. Revise Sec.  515.565 to read as follows:


Sec.  515.565   Educational activities.

    (a) General license for educational activities. (1) Accredited U.S. 
undergraduate or graduate degree-granting academic institutions, their 
students enrolled in an undergraduate or graduate degree program at the 
institution, and their full-time permanent employees, are authorized to 
engage, under the auspices of the institutions, in transactions, 
including the travel-related transactions set forth in Sec.  
515.560(c), that are directly incident to the following activities:
    (i) Participation in a structured educational program in Cuba as 
part of a course offered at the U.S. institution, provided the program 
includes a full term, and in no instance includes fewer than 10 weeks, 
of study in Cuba. An individual planning to engage in such transactions 
must obtain a letter from the U.S. institution stating that the 
individual is a student currently enrolled in an undergraduate or 
graduate degree program at the institution, or is a full-time permanent 
employee of the institution, and that the Cuba-related travel is part 
of a

[[Page 52001]]

structured educational program of the U.S. institution that will be no 
shorter than 10 weeks in duration;
    (ii) Noncommercial academic research in Cuba specifically related 
to Cuba and for the purpose of obtaining a graduate degree. A student 
planning to engage in such transactions must obtain a letter from the 
U.S. institution stating that the individual is a student currently 
enrolled in a graduate degree program at the U.S. institution and that 
the research in Cuba will be accepted for credit toward that degree;
    (iii) Participation in a formal course of study at a Cuban academic 
institution, provided the formal course of study in Cuba will be 
accepted for credit toward the student's undergraduate or graduate 
degree at the U.S. institution and provided that the course of study is 
no shorter than 10 weeks in duration. An individual planning to engage 
in such transactions must obtain a letter from the U.S. institution 
stating that the individual is a student currently enrolled in an 
undergraduate or graduate degree program at the U.S. institution and 
that the study in Cuba will be accepted for credit toward that degree 
and will be no shorter than 10 weeks in duration;
    (iv) Teaching at a Cuban academic institution by an individual 
regularly employed in a teaching capacity at the U.S. institution, 
provided the teaching activities are related to an academic program at 
the Cuban institution and provided that the duration of the teaching 
will be no shorter than 10 weeks. An individual planning to engage in 
such transactions must obtain a letter from the U.S. institution 
stating that the individual is a full-time permanent employee regularly 
employed in a teaching capacity at the U.S. institution;
    (v) Sponsorship of a Cuban scholar to teach or engage in other 
scholarly activity at the U.S. institution (in addition to those 
transactions authorized by the general license contained in Sec.  
515.571); and

    Note to paragraph (a)(1)(v): See Sec.  515.571(a) for 
authorizations related to certain banking transactions and receipt 
of salary or other compensation 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.

    (vi) The organization of, and preparation for, the activities 
described in paragraphs (a)(1)(i) through (a)(1)(v) of this section by 
a full-time permanent employee of the U.S. institution. An individual 
engaging in such transactions must obtain a letter from the U.S. 
institution stating that the individual is a full-time permanent 
employee of the U.S. institution.
    (2) To the extent not authorized in paragraph (a)(1) of this 
section, 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 directly incident to the following 
activities, provided that any travel-related transactions pursuant to 
these authorizations take place under the auspices of an organization 
that is a person subject to U.S. jurisdiction, and further provided 
that all such travelers be accompanied by a person subject to U.S. 
jurisdiction who is an employee, paid consultant, agent, or other 
representative of the sponsoring organization, except in cases where 
the traveler is an employee, paid consultant, agent, or other 
representative traveling individually (not as part of a group) and the 
individual traveler obtains a letter from the sponsoring organization 
stating that: The individual is traveling to Cuba as an employee, paid 
consultant, agent, or other representative (including specifying the 
responsibilities of the individual that make him or her a 
representative) of the sponsoring organization; the individual is 
acting for or on behalf of, or otherwise representing, the sponsoring 
organization; and the individual's travel to Cuba is related to his or 
her role at the sponsoring organization:
    (i) Participation in a structured educational program in Cuba as 
part of a course offered for credit by a U.S. graduate or undergraduate 
degree-granting academic institution that is sponsoring the program;
    (ii) Noncommercial academic research in Cuba specifically related 
to Cuba and for the purpose of obtaining an undergraduate or graduate 
degree;
    (iii) Participation in a formal course of study at a Cuban academic 
institution, provided the formal course of study in Cuba will be 
accepted for credit toward the student's graduate or undergraduate 
degree;
    (iv) Teaching at a Cuban academic institution related to an 
academic program at the Cuban institution, provided that the individual 
is regularly employed by a U.S. or other non-Cuban academic 
institution;
    (v) Sponsorship of a Cuban scholar to teach or engage in other 
scholarly activity at the sponsoring U.S. academic institution (in 
addition to those transactions authorized by the general license 
contained in Sec.  515.571).

    Note to paragraph (a)(2)(v): See Sec.  515.571(a) for 
authorizations related to certain banking transactions and receipt 
of salary or other compensation 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.

    (vi) Educational exchanges sponsored by Cuban or U.S. secondary 
schools involving secondary school students' participation in a formal 
course of study or in a structured educational program offered by a 
secondary school or other academic institution and led by a teacher or 
other secondary school official. This includes participation by a 
reasonable number of adult chaperones to accompany the secondary school 
students to Cuba;
    (vii) 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;
    (viii) Establishment of academic exchanges and joint non-commercial 
academic research projects with universities or academic institutions 
in Cuba;
    (ix) 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;
    (x) 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;
    (xi) The organization of, and preparation for, activities described 
in paragraphs (a)(2)(i) through (a)(2)(x) of this section by an 
employee, paid consultant, agent, or other representative of the 
sponsoring organization that is a person subject to U.S. jurisdiction; 
and
    (xii) 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:
    (A) The organization is directly affiliated with one or more U.S. 
academic institutions or secondary schools; and
    (B) The organization facilitates educational activities that meet 
the requirements of one or more of the general licenses set forth in 
paragraphs (a)(1)(i) through (iii), (a)(2)(i) through (iii), and 
(a)(2)(vi) of this section.


[[Page 52002]]


    Note to paragraph (a)(2): The authorizations in this paragraph 
extend 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 paragraph (a)(2) of this section to 
participate in the academic activities in Cuba described through any 
sponsoring U.S. academic institution.

    Example to paragraph (a)(2): An individual undergraduate student 
serves as a research assistant at his or her U.S. undergraduate 
degree-granting academic institution. This individual may travel to 
Cuba to engage in noncommercial academic research specifically 
related to Cuba for the purpose of obtaining an undergraduate degree 
pursuant to paragraph (a)(2)(ii) of this section if the student is 
either accompanied by an employee, paid consultant, agent, or other 
representative of the academic institution (either individually or 
as part of a group), or has obtained a letter from the institution 
stating that the student is an employee, paid consultant, agent, or 
other representative (including specifying the responsibilities that 
make him or her a representative) of the academic institution, that 
the student is acting for or on behalf of or otherwise representing 
the academic institution, and that the student's travel to Cuba is 
related to his or her role at the academic institution.

    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 and maintain accounts at Cuban financial 
institutions.


    Note 2 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.


    Note 3 to paragraph (a): See Sec.  515.590(a) for an 
authorization for the provision of educational grants, scholarships, 
or awards to a Cuban national or in which Cuba or a Cuban national 
otherwise has an interest.

    (b) General license for people-to-people travel. The travel-related 
transactions set forth in Sec.  515.560(c) and such additional 
transactions as are directly incident to educational exchanges not 
involving academic study pursuant to a degree program are authorized, 
provided that:
    (1) The exchanges take place under the auspices of an organization 
that is a person subject to U.S. jurisdiction and that sponsors such 
exchanges to promote people-to-people contact;
    (2) Travel-related transactions pursuant to this authorization are 
for the purpose of engaging, while in Cuba, in a full-time schedule of 
activities that enhance contact with the Cuban people, support civil 
society in Cuba, or promote the Cuban people's independence from Cuban 
authorities;
    (3) Each traveler has a full-time schedule of educational exchange 
activities that result in meaningful interaction between the traveler 
and individuals in Cuba;
    (4) A person subject to U.S. jurisdiction who is an employee, paid 
consultant, agent, or other representative of the sponsoring 
organization accompanies each group traveling to Cuba to ensure that 
each traveler has a full-time schedule of educational exchange 
activities;
    (5) The predominant portion of the activities engaged in by each 
travelers is not 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; and
    (6) In addition to all other information required by Sec.  501.601 
of this chapter, persons relying on the authorization in paragraph (b) 
of this section, including entities sponsoring travel pursuant to the 
authorization in paragraph (b) of this section, must retain records 
sufficient to demonstrate that each individual traveler has engaged in 
a full-time schedule of activities that satisfy the requirements of 
paragraphs (b)(1) through (b)(5) of this section. Individuals may rely 
on the entity sponsoring the travel to satisfy his or her recordkeeping 
requirements with respect to the requirements of paragraphs (b)(1) 
through (5) of this section. These records must be furnished to the 
Office of Foreign Assets Control on demand pursuant to Sec.  501.602 of 
this chapter.

    Example 1 to paragraph (b): An organization sponsors and 
organizes educational exchanges not involving academic study 
pursuant to a degree program for travelers to learn side-by-side 
with Cuban individuals in areas such as environmental protection or 
the arts. Each traveler in the group will have a full-time schedule 
of educational exchange activities that result in meaningful 
interaction between the travelers and individuals in Cuba. The group 
will be accompanied by a person who is subject to U.S. jurisdiction 
who is a representative of the sponsoring organization for the 
duration of the trip. The organization's activities qualify for the 
general license for people-to-people travel. In addition, the 
individual travelers may rely on the entity sponsoring the travel to 
satisfy their recordkeeping requirements.
    Example 2 to paragraph (b): An individual plans to travel to 
Cuba to participate in discussions with Cuban artists on community 
projects, exchanges with the founders of a youth arts program, and 
extended dialogue with local city planners and architects to learn 
about historical restoration projects in Old Havana. The individual 
traveler will have a full-time schedule of such educational exchange 
activities that result in meaningful interaction between the 
traveler and individuals in Cuba. The individual's activities do not 
qualify for the general license for people-to-people travel because 
the individual is not traveling under the auspices of an 
organization that is a person subject to U.S. jurisdiction and that 
sponsors such exchanges to promote people-to-people contact. The 
individual's travel may qualify for the general license in Sec.  
515.574 (Support for the Cuban People) provided the individual meets 
all of its requirements.

    Note to paragraphs (a) and (b): Except as provided in paragraph 
(b)(6) of this section, each person relying on the general 
authorizations in these paragraphs, including entities sponsoring 
travel pursuant to the authorization in paragraph (b) of this 
section, 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.

    (c) Certain direct financial transactions restricted. Nothing in 
paragraph (a) or (b) of this section authorizes a direct financial 
transaction prohibited by Sec.  515.209.
    (d) General license for certain educational travel and related 
transactions where certain transactions were completed prior to 
November 9, 2017. Persons subject to U.S. jurisdiction are authorized 
to engage in educational travel and related transactions for a trip 
consistent with paragraph (a) of this section as those provisions 
existed on June 16, 2017, provided the traveler completed at least one 
travel-related transaction (such as purchasing a flight or reserving 
accommodation) for that particular trip prior to November 9, 2017 and 
further provided any new travel-related transactions initiated on or 
after November 9, 2017 do not involve a direct financial transaction 
prohibited by Sec.  515.209.
    (e) General license for certain people-to-people travel and related 
transactions where certain transactions were completed prior to June 
16, 2017. Persons subject to U.S. jurisdiction are authorized to engage 
in people-to-people travel and related transactions for a trip 
consistent with paragraphs (b)(1)-(3) of this section as those 
provisions existed on June 16, 2017, provided the traveler completed at 
least one travel-related transaction (such as purchasing a flight or 
reserving accommodation) for that particular trip prior to June 16, 
2017, and further provided any new travel-related transactions 
initiated on or after November 9, 2017 do not involve a

[[Page 52003]]

direct financial transaction prohibited by Sec.  515.209.
    (f) Transactions related to activities that are primarily tourist-
oriented are not authorized pursuant to this section.
    (g) Specific licenses. Specific licenses may be issued on a case-
by-case basis authorizing the travel-related transactions set forth in 
Sec.  515.560(c) and such other transactions as are related to 
educational activities that do not qualify for the general licenses 
under paragraph (a) or (b) of this section.

0
13. Amend Sec.  515.566 by adding a sentence at the end of paragraph 
(a) to read as follows:


Sec.  515.566  Religious activities in Cuba.

    (a) * * * Nothing in this paragraph authorizes a direct financial 
transaction prohibited by Sec.  515.209.
* * * * *

0
14. Amend Sec.  515.567 by redesignating paragraph (d) as paragraph (e) 
and adding new paragraph (d) to read as follows:


Sec.  515.567  Public performances, clinics, workshops, athletic and 
other competitions, and exhibitions.

* * * * *
    (d) Nothing in paragraph (a) or (b) of this section authorizes a 
direct financial transaction prohibited by Sec.  515.209.
* * * * *

0
15. Amend Sec.  515.572 by adding a sentence at the end of paragraph 
(a)(1) to read as follows:


Sec.  515.572  Provision of travel, carrier, other transportation-
related, and remittance forwarding services.

    (a) * * *
    (1) * * * Nothing in this paragraph authorizes a direct financial 
transaction prohibited by Sec.  515.209 if the terms of the applicable 
general or specific license authorizing the travel expressly exclude 
such a transaction.
* * * * *

0
16. Amend Sec.  515.573 by adding paragraph (f) to read as follows:


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

* * * * *
    (f) Certain direct financial transactions restricted. (1) Nothing 
in paragraph (c)(3) of this section, with the exception of transactions 
related to exports or reexports of agricultural commodities, medicines 
or medical supplies, items associated with the provision of 
telecommunications and internet services for the Cuban people, or items 
associated with air and sea operations that support permissible travel, 
cargo, or trade, authorizes a direct financial transaction prohibited 
by Sec.  515.209. Nothing in paragraph (c)(5) of this section, with the 
exception of transactions concerning air and sea operations that 
support permissible travel, cargo, or trade, authorizes a direct 
financial transaction prohibited by Sec.  515.209.
    (2) Nothing in paragraph (d)(2), (3), or (6) of this section 
authorizes a direct financial transaction prohibited by Sec.  515.209.
* * * * *

0
17. Amend Sec.  515.574 by redesignating paragraph (a)(2) as (a)(3), 
adding new paragraph (a)(2), redesignating the Note to paragraph (a) as 
Note 1 to paragraph (a), adding Note 2 to paragraph (a), redesignating 
paragraph (c) as paragraph (d), adding new paragraph (c), and adding 
Examples (1)-(3) to Sec.  515.574 to read as follows:


Sec.  515.574  Support for the Cuban people.

    (a) * * *
    (2) Each traveler engages in a full-time schedule of activities 
that:
    (i) Enhance contact with the Cuban people, support civil society in 
Cuba, or promote the Cuban people's independence from Cuban 
authorities; and
    (ii) Result in meaningful interaction with individuals in Cuba.
* * * * *

    Note 2 to paragraph (a):  Staying in a room at a rented 
accommodation in a private Cuban residence (casa particular), eating 
at privately-owned Cuban restaurants (paladares), and shopping at 
privately-owned stores run by self-employed Cubans (cuentapropista) 
are examples of activities that qualify for this general license. 
However, in order to meet the requirement for a full-time schedule, 
a traveler must engage in additional authorized Support for the 
Cuban People activities.

* * * * *
    (c) Certain direct financial transactions restricted. Nothing in 
paragraph (a)(1)(iii) of this section authorizes a direct financial 
transaction prohibited by Sec.  515.209, with the exception of 
transactions on behalf of a non-governmental organization.
* * * * *
    Example 1 to Sec.  515.574:  An individual plans to travel to 
Cuba, stay in a room at a rented accommodation in a private Cuban 
residence (casa particular), eat at privately-owned Cuban 
restaurants (paladares), and shop at privately-owned stores run by 
self-employed Cubans (cuentapropista) during his or her four-day 
trip. While at the casa particular, the individual will have 
breakfast each morning with the Cuban host and engage with the Cuban 
host to learn about Cuban culture. In addition, the traveler will 
complete his or her full-time schedule by supporting Cuban 
entrepreneurs launching their privately-owned businesses. The 
traveler's activities promote independent activity intended to 
strengthen civil society in Cuba. Because the individual's 
qualifying activities are not limited to staying in a room at a 
rented accommodation in a private Cuban residence (casa particular), 
eating at privately-owned Cuban restaurants (paladares), and 
shopping at privately owned stores run by self-employed Cubans 
(cuentapropista) and the traveler maintains a full-time schedule 
that enhances contact with the Cuban people, supports civil society 
in Cuba, and promotes the Cuban people's independence from Cuban 
authorities, and that results in meaningful interaction between the 
traveler and Cuban individuals, the individual's travel qualifies 
for the general license.
    Example 2 to Sec.  515.574: A group of friends plans to travel 
and maintain a full-time schedule throughout their trip by 
volunteering with a recognized non-governmental organization to 
build a school for underserved Cuban children with the local 
community. In their free time, the travelers plan to rent bicycles 
to explore the streets of Havana and visit an art museum. The 
travelers' trip would qualify for the general license because the 
volunteer activities promote independent activity intended to 
strengthen civil society in Cuba and constitute a full-time schedule 
that enhances contact with the Cuban people and supports civil 
society in Cuba, and results in meaningful interaction between the 
travelers and individuals in Cuba.
    Example 3 to Sec.  515.574: An individual plans to travel to 
Cuba, rent a bicycle to explore the neighborhoods and beaches, and 
engage in brief exchanges with local beach vendors. The individual 
intends to stay at a hotel that does not appear on the Cuba 
Restricted List (see Sec.  515.209). The traveler's trip does not 
qualify for this general license because none of these activities 
promote independent activity intended to strengthen civil society in 
Cuba.

0
18. Amend Sec.  515.576 by redesignating paragraph (c) as paragraph (d) 
and by adding new paragraph (c) to read as follows:


Sec.  515.576  Activities of private foundations or research or 
educational institutes.

* * * * *
    (c) Certain direct financial transactions restricted. Nothing in 
paragraph (a) authorizes a direct financial transaction prohibited by 
Sec.  515.209.
* * * * *

0
19. Amend Sec.  515.577 by adding paragraph (f) to read as follows:


Sec.  515.577  Authorized transactions necessary and ordinarily 
incident to publishing.

* * * * *
    (f) Certain direct financial transactions restricted. Nothing in 
this section authorizes a direct financial transaction prohibited by 
Sec.  515.209.

[[Page 52004]]


0
20. Amend Sec.  515.578 by redesignating paragraph (f) as paragraph (g) 
and adding new paragraph (f) to read as follows:


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

* * * * *
    (f) Certain direct financial transactions restricted. Nothing in 
paragraphs (d) or (e) authorizes a direct financial transaction 
prohibited by Sec.  515.209.
* * * * *

0
21. Amend Sec.  515.581 by adding a sentence at the end to read as 
follows:


Sec.  515.581  Transactions related to conferences in third countries.

     * * * Nothing in this paragraph authorizes a direct financial 
transaction prohibited by Sec.  515.209.
* * * * *

0
22. Amend Sec.  515.584 by revising paragraph (f) to read as follows:


Sec.  515.584  Certain financial transactions involving Cuba.

* * * * *
    (f) Any banking institution, as defined in Sec.  515.314, that is a 
person subject to U.S. jurisdiction is authorized to provide financing 
for exports or reexports of items, other than agricultural commodities, 
authorized pursuant to Sec.  515.533, including issuing, advising, 
negotiating, paying, or confirming letters of credit (including letters 
of credit issued by a financial institution that is a national of 
Cuba), accepting collateral for issuing or confirming letters of 
credit, and processing documentary collections. With the exception of 
transactions related to exports or reexports of medicines or medical 
supplies, items associated with the provision of telecommunications and 
internet services for the Cuban people, or items associated with air 
and sea operations that support permissible travel, cargo, or trade, 
nothing in this paragraph authorizes a direct financial transaction 
prohibited by Sec.  515.209.
* * * * *

0
23. Amend Sec.  515.590 by revising the introductory text to read as 
follows:


Sec.  515.590  Certain grants, scholarships, and awards.

    The provision of grants, scholarships, or awards relating to the 
following activities to a Cuban national or in which Cuba or a Cuban 
national otherwise has an interest is authorized, provided that nothing 
in this section authorizes a direct financial transaction prohibited by 
Sec.  515.209:
* * * * *

    Dated: November 6, 2017.
John E. Smith,
Director, Office of Foreign Assets Control.
[FR Doc. 2017-24447 Filed 11-8-17; 8:45 am]
BILLING CODE 4810-AL-P