Cuba OFAC Sanctions (CACR)
The Cuban Assets Control Regulations (CACR) represent one of OFAC’s oldest and most comprehensive sanctions programs, dating to 1963. Our lawyers advise on CACR compliance, Cuban travel-related transactions, and exceptions for licensed activities.
Cuba sanctions are comprehensive U.S. economic restrictions administered by the Treasury Department’s Office of Foreign Assets Control (OFAC) under the Cuban Assets Control Regulations (CACR), 31 CFR Part 515. In effect since 1963, the CACR prohibits most trade, financial transactions, travel, and investment between U.S. persons and Cuba — with limited exceptions under general and specific OFAC licenses. Violations carry civil penalties of up to $91,522 per transaction and criminal penalties of up to $1 million and 10 years in prison. If you are facing Cuba sanctions compliance issues, an experienced Cuba sanctions lawyer is essential to protect your business and avoid catastrophic penalties.
Overview of Cuba OFAC Sanctions: The CACR Framework
The Cuban Assets Control Regulations represent one of the oldest, broadest, and most strictly enforced U.S. sanctions programs — comparable in scope only to sanctions against Iran and North Korea. Rooted in the Trading with the Enemy Act (TWEA) and subsequent legislation, the CACR has been expanded, modified, and tightened across multiple administrations, making Cuba sanctions compliance a constantly evolving legal challenge.
Key legislation underpinning Cuba OFAC sanctions includes:
- Trading with the Enemy Act (TWEA), 50 U.S.C. §§ 5, 16 — the foundational authority for the CACR since 1963
- Cuban Democracy Act of 1992 (CDA), 22 U.S.C. §§ 6001–6010 — codified and tightened the embargo
- Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996, 22 U.S.C. §§ 6021–6091 (Helms-Burton) — extended the embargo to third-country entities trafficking in Cuban assets
- Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA), 22 U.S.C. §§ 7201–7211 — created limited export exceptions for food and medicine
2026 Update — Trump Administration Tightening: On January 29, 2026, President Trump signed an executive order titled Addressing Threats to the United States by the Government of Cuba, declaring a national emergency and imposing additional tariffs on imports from countries supplying oil to Cuba. The Trump Administration also reinstituted Cuba’s State Sponsor of Terrorism (SSOT) designation, reversed the prior administration’s de-listing, and reimposed sanctions on entities linked to Cuba’s military, intelligence, and security services (GAESA and affiliated entities). This marks a significant tightening of the Cuba sanctions regime in 2025–2026, with expanded enforcement activity by OFAC.
What Is Prohibited Under Cuba Sanctions (CACR)
The CACR imposes broad prohibitions on virtually all transactions between U.S. persons and Cuba or Cuban interests. Below is a summary of the key prohibited categories:
| Category | Prohibition | Notes |
|---|---|---|
| Tourism travel to Cuba | Strictly prohibited for all U.S. persons | No general tourist travel license exists; violations result in civil penalties |
| Trade with Cuban government entities | Prohibited — import and export | Includes GAESA military conglomerate and state enterprises |
| Investment in Cuba | Prohibited | Includes equity investment, loans, and joint ventures with Cuban government |
| Financial transactions via U.S. banks | Prohibited for Cuban government interests | “U-turn” transactions permanently terminated; correspondent banking restricted |
| Cryptocurrency transfers to Cuba | Prohibited | July 2023 OFAC action blocked Cuba’s access to digital assets |
| Import of Cuban goods (tobacco, alcohol, etc.) | Prohibited under 31 CFR 515.204 | Very limited exceptions; personal baggage restrictions apply |
| Credit/financing for Cuban entities | Prohibited | Includes bonds, notes, and guarantees for Cuban government entities |
| Transactions with persons on SDN List | Absolutely prohibited | Includes Cuban government officials, GAESA leadership; SDN removal may be required |
Important: Cuba sanctions apply not only to U.S. citizens but to all U.S. persons — including U.S.-incorporated entities, permanent residents, and foreign subsidiaries of U.S. companies operating under U.S. jurisdiction. Third-party transactions routed through intermediaries are also prohibited and subject to enforcement. In February 2026, OFAC penalized a Florida school for receiving tuition payments indirectly from sanctioned Cuban parties — demonstrating that “predominantly domestic” operations are not immune.
What Is Permitted: General Licenses Under Cuba OFAC Sanctions
Despite the broad scope of Cuba OFAC sanctions, certain transactions are authorized under OFAC General Licenses — standing authorizations published in the Federal Register that do not require individual OFAC approval. Persons relying on general licenses must strictly comply with all conditions; non-compliance converts an authorized transaction into a violation.
| General License Category | CFR Provision | Key Conditions |
|---|---|---|
| Family visits to Cuba | 31 CFR § 515.561 | Limited to close relatives; no tourist activities permitted |
| U.S. government official travel | 31 CFR § 515.562 | Must be on official government or intergovernmental business |
| Journalistic activities | 31 CFR § 515.563 | Must be working for a news organization; full professional schedule required |
| Professional research and meetings | 31 CFR § 515.564 | Must be directly related to professional expertise; no excessive free time |
| Educational activities | 31 CFR § 515.565 | Academic institutions, faculty, students; includes degree programs in Cuba |
| Religious activities | 31 CFR § 515.566 | Full schedule of religious activities required; material donations prohibited |
| Humanitarian projects | 31 CFR § 515.575 | Medical, construction, environmental programs; private sector development allowed |
| Support for the Cuban people | 31 CFR § 515.574 | Activities must meaningfully engage Cuban civil society; no government contact |
| Family remittances | 31 CFR § 515.570 | Permitted to close relatives; prohibited to Cuban Communist Party officials |
| Export of food and agricultural products | 31 CFR § 515.533 + TSRA | Prepayment required or third-country bank financing; BIS license also required |
| Export of medical goods and devices | TSRA, 22 U.S.C. § 7207 | Humanitarian exception; BIS export authorization required |
| Information and media productions | 31 CFR § 515.545 | Covers films, TV programs, music; royalty transfers permitted |
Note on Remittances (2026): Under the current administration, remittance restrictions to Cuba have been tightened. Transfers are permitted to close relatives but are prohibited to senior Cuban government officials, members of the Communist Party of Cuba, and entities on the Cuba Restricted List. Transfers cannot originate from blocked accounts.
How to Get a Specific OFAC License for Cuba Transactions
When your transaction does not qualify under any CACR general license, you may apply for a Specific OFAC License — an individual authorization granted by OFAC for a particular transaction or category of transactions. Our OFAC licensing attorneys regularly assist clients in obtaining specific licenses for Cuba-related activities that fall outside the general license framework.
Step-by-Step: Applying for a Cuba-Specific OFAC License
- Assess your transaction: Determine whether your proposed activity falls outside any existing CACR general license. An OFAC lawyer can analyze your facts against the full CACR framework to confirm whether a specific license is needed.
- Prepare a detailed application: Submit through the OFAC License Application Portal (online at ofac.treasury.gov) or by mail to OFAC at 1500 Pennsylvania Avenue NW, Washington, DC 20220. The application must include:
- A precise description of all proposed transactions and parties involved
- Legal basis and justification (humanitarian, educational, economic, or foreign policy rationale)
- Full identification of all parties: names, addresses, nationalities, and roles
- Supporting documentation (contracts, organizational materials, project plans)
- Await OFAC review: Specific license applications typically take 6–12 months to process. OFAC evaluates applications against U.S. national security, foreign policy, and humanitarian interests.
- Respond to OFAC follow-up requests: OFAC frequently requests supplemental information. Timely, accurate responses are critical. Legal representation ensures your responses are complete and legally sound.
- Receive license and implement compliance controls: Once issued, a specific license contains precise conditions. You must maintain transaction records and be prepared to provide documentation in the event of an OFAC inquiry or audit.
Our OFAC licensing team has successfully obtained specific licenses for Cuba-related activities including infrastructure projects with Cuban private entities, long-term medical aid programs, renewable energy research, documentary filmmaking, and scientific research collaborations. We manage the full application process and coordinate with OFAC on your behalf.
Penalties for Cuba Sanctions Violations
Cuba OFAC sanctions violations carry some of the most severe penalties in U.S. regulatory law. OFAC enforces both civil and criminal penalties, and enforcement has intensified under the current administration.
Civil Penalties
Civil penalties for CACR violations can reach $91,522 per violation (adjusted annually for inflation) or twice the value of the underlying transaction — whichever is greater. Each transaction counts as a separate violation, meaning a pattern of prohibited payments can quickly generate millions in exposure.
Criminal Penalties
Willful violations of Cuba sanctions may result in criminal prosecution by the U.S. Department of Justice, including:
- Up to 10 years imprisonment per count
- Corporate fines up to $1,000,000 per violation
- Individual fines up to $250,000 per violation
- Asset forfeiture of proceeds derived from prohibited transactions
Notable OFAC Enforcement Actions — Cuba Sanctions
- Stanley Black & Decker (2019): $1,869,144 penalty for supplying products to Cuba through third-country subsidiaries, due to insufficient internal compliance controls
- CGG Services S.A. (2016): $614,250 settlement for transactions involving Cuban oil tankers in violation of CACR
- Florida school (2026): Penalized for receiving tuition payments routed through third parties from sanctioned Cuban-interest parties — demonstrating that indirect exposure is fully prosecutable
Beyond financial penalties, CACR violations can result in reputational damage, loss of access to U.S. financial markets, debarment from U.S. government contracts, and — if an SDN designation follows — severe operational disruption. If you are under OFAC investigation or have received a subpoena, contact a Cuba sanctions attorney immediately to protect your rights and mitigate potential penalties through voluntary self-disclosure.
How a Cuba Sanctions Lawyer Can Help
Navigating Cuba OFAC sanctions requires more than a passing familiarity with CACR regulations. The framework has been amended by every U.S. administration since 1963, recent 2026 changes have tightened restrictions significantly, and OFAC enforcement actions are increasing. Whether you are a business with Cuban supply chain exposure, an individual seeking to send remittances, or a company under investigation, our OFAC attorneys provide comprehensive legal support at every stage.
Our Cuba Sanctions Legal Services
- Cuba sanctions compliance audits: We review your business operations, counterparty relationships, and financial transactions against the full CACR framework to identify and remediate compliance gaps before OFAC does
- OFAC specific license applications: We draft, file, and manage OFAC license applications for Cuba transactions, including complex multi-party and cross-border arrangements — visit our OFAC licensing page for details
- General license compliance analysis: We determine whether your proposed Cuba activities qualify under existing CACR general licenses and document your compliance position to withstand OFAC scrutiny
- OFAC investigations and enforcement defense: We represent clients under OFAC investigation, prepare voluntary self-disclosure submissions, negotiate penalty mitigation, and manage DOJ referrals
- SDN List removal: If your business or a key counterparty has been designated as a Specially Designated National in connection with Cuba, our SDN removal attorneys handle administrative reconsideration and delisting petitions
- Cuba trade and export control advice: We coordinate CACR compliance with BIS Export Administration Regulations (EAR) and TSRA requirements for food, agricultural, and medical exports to Cuba
- Remittance and financial compliance: We advise on permissible remittance structures, banking compliance, and cryptocurrency transaction restrictions applicable to Cuba
Our Cuba sanctions lawyers combine deep regulatory expertise with hands-on OFAC practice. We have assisted U.S. corporations, financial institutions, NGOs, healthcare providers, media companies, and individuals across a full spectrum of Cuba sanctions challenges. Contact us today for a confidential consultation.
Cuba Sanctions FAQ
1. Are Cuba sanctions still in effect in 2026?
Yes — Cuba sanctions under the CACR (31 CFR Part 515) remain fully in effect in 2026 and have been significantly tightened under the Trump Administration. The January 2026 executive order expanded the legal basis for Cuba sanctions, reinstated Cuba’s SSOT designation, and introduced new tariff mechanisms targeting countries that trade with Cuba. Businesses and individuals must treat Cuba as a fully sanctioned jurisdiction with no relaxation in the foreseeable future.
2. What is the difference between a Cuba OFAC general license and a specific license?
A general license is a standing OFAC authorization published in the Federal Register that automatically applies to anyone meeting its conditions — no individual OFAC approval is required. A specific license is an individual authorization granted by OFAC for a particular transaction after review of a formal application. Specific licenses are required when a transaction does not qualify under any general license, and the review process typically takes 6–12 months. Our OFAC licensing attorneys handle both general license compliance analysis and specific license applications.
3. Can U.S. companies work with Cuban private-sector businesses?
Limited transactions with Cuba’s private sector may be authorized under CACR general licenses (e.g., supporting the Cuban people, educational activities, humanitarian projects), but dealings with state-owned entities and GAESA-affiliated businesses remain broadly prohibited. Transactions with Cuban private parties still require careful CACR analysis, particularly in light of 2026 tightening. Working with a Cuba sanctions lawyer to structure compliant private-sector engagement is strongly advised before any transaction proceeds.
4. What happens if my company unknowingly violated Cuba sanctions?
OFAC can impose civil penalties even for non-willful violations — there is no “I didn’t know” defense under the CACR. However, voluntary self-disclosure is a significant mitigating factor that can reduce penalties by up to 50%. OFAC also considers your compliance program, the seriousness of the violation, and your cooperation. If you discover a potential Cuba sanctions violation, contact a Cuba sanctions attorney immediately to assess your exposure and prepare a voluntary disclosure strategy before OFAC initiates enforcement.
5. What is the Cuba Restricted List and how does it affect my business?
The Cuba Restricted List is a State Department list of Cuban entities — primarily military, intelligence, and security organizations — with which U.S. persons are prohibited from engaging in direct financial transactions, regardless of OFAC license status. The list was expanded under the Trump Administration in 2025–2026 and now includes dozens of GAESA-affiliated hotels, airlines, and import/export companies. Any transaction involving a Restricted List entity — even one that might otherwise qualify under a general license — is prohibited. If a counterparty or partner has been added to the SDN List, sanctions law attorneys can advise on delisting options and permissible wind-down activities.
Frequently Asked Questions
What are the current U.S. sanctions against Cuba?
The United States maintains a comprehensive sanctions program against Cuba administered by OFAC under the Cuban Assets Control Regulations (CACR). The program prohibits most financial transactions, trade, and travel-related transactions between U.S. persons and Cuba, including Cuban nationals. Cuba is one of the most comprehensively sanctioned jurisdictions under U.S. law, alongside Iran and North Korea.
Can U.S. citizens do business with Cuba?
U.S. persons are generally prohibited from engaging in most commercial transactions with Cuba. However, OFAC maintains a series of general and specific licenses that authorize certain categories of transactions — including humanitarian aid, educational exchanges, journalistic activities, family remittances, and authorized travel. Any business activity involving Cuba requires careful legal analysis to determine whether a license applies or must be obtained.
Who needs an OFAC license for Cuba-related transactions?
Any U.S. person or U.S.-nexus entity seeking to engage in transactions with Cuba that are not covered by an existing OFAC general license must obtain a specific license from OFAC before proceeding. This includes financial institutions processing Cuba-related payments, companies with Cuban suppliers or customers, and individuals remitting money beyond the authorized limits. Our attorneys assess each Cuba transaction scenario and advise on the applicable license framework or authorization requirement.
What are the penalties for violating Cuba OFAC sanctions?
Violations of the Cuban Assets Control Regulations can result in civil penalties of up to $91,522 per violation or twice the value of the transaction — whichever is greater. Criminal violations can carry penalties of up to $1 million per entity and 20 years imprisonment for individuals. OFAC maintains a voluntary disclosure program that can reduce penalties by up to 50% for timely and complete self-disclosure of violations.
How can a sanctions lawyer help with Cuba compliance?
A Cuba sanctions lawyer advises on the full range of OFAC Cuba compliance obligations: reviewing specific transaction scenarios for sanctions risk, applying available general licenses, preparing specific license applications for unauthorized transactions, establishing compliance programs for companies with potential Cuba exposure, and representing clients in OFAC enforcement investigations or penalty proceedings. Early legal advice before a Cuba-related transaction prevents costly compliance failures.