OFAC Announces New Restrictions On Remittances Involving Cuba

Yesterday, OFAC announced amendments to the Cuba embargo that will further restrict the ability of U.S. companies to process remittances to or from Cuba. Specifically, the new rules prohibit U.S. companies from processing remittances involving Cuban entities on the State Department’s Cuba Restricted List (CRL), which include Fincimex and American International Services, two major partners of foreign credit card and money transfer companies. The changes are likely to have a significant impact on remittance flows from the United States to Cuba, as the restricted Cuban entities reportedly process almost half of all remittances to Cuba.

Companies that process remittances to or from Cuba must examine their exposure to the new restrictions and determine whether there are ways to continue to provide authorized remittance services to the island. The new rules become effective on November 26, 2020.