735. What would constitute What are examples of a direct or indirect financial transactions with an entity or subentity on the State Department’s Cuba Restricted List (CRL) prohibited by 31 CFR § 515.209? What are some examples of this prohibited conduct?

Section 515.209 prohibits persons subject to U.S. jurisdiction from engaging in a direct or, effective September 30, 2026, an indirect financial transaction with entities and subentities on the CRL. A person engages in a direct financial transaction by either acting as the originator on a transfer of funds whose ultimate beneficiary is on the CRL or as the ultimate beneficiary on a transfer of funds whose originator is an entity or subentity on the CRL, including a transaction by wire transfer, credit card, check, or payment of cash. A person engages in an indirect financial transaction by participating in a transfer of funds despite not acting as an originator or ultimate beneficiary of that funds transfer, where either the originator or the ultimate beneficiary is an entity or subentity on the CRL, including a transaction by wire transfer, credit card, check, or payment of cash. This definition of "indirect financial transaction" is unique to the Cuban Assets Control Regulations and should not be interpreted to apply to other OFAC programs.
Below are some examples of direct and indirect financial transactions that 31 CFR § 515.209 would prohibit.

Direct Financial Transactions

1. A person subject to U.S. jurisdiction is traveling to Cuba to engage in an authorized family visit pursuant to 31 CFR § 515.561. The traveler books and pays for a hotel room directly with a hotel included on the CRL. This is a prohibited direct financial transaction because the traveler is a person subject to U.S. jurisdiction who would be the originator of a transfer of funds (i.e., payment for the room) whose ultimate beneficiary would be a hotel that is on the CRL.
2. An individual working for a church subject to U.S. jurisdiction is interested in establishing a physical presence in Cuba pursuant to 31 CFR § 515.573(d)(3). The individual signs a new contract directly with a real estate company on the CRL to rent a location for the church’s physical presence, and the church begins making rent payments shortly thereafter. This is a prohibited direct financial transaction because the church is a person subject to U.S. jurisdiction who would be originating a transfer of funds (i.e., rent payments) whose ultimate beneficiary would be an entity on the CRL.
3. A person subject to U.S. jurisdiction is traveling to Cuba to engage in professional research pursuant to 31 CFR § 515.564(a). The traveler books a stay a hotel that is on the CRL through a travel agency that is not subject to U.S. jurisdiction. The traveler pays for the trip, including for the room at the hotel, through the travel agency so that the traveler pays the travel agency, which in turn pays the Cuban entities, including the hotel. This is a prohibited direct financial transaction because the traveler is a person subject to U.S. jurisdiction who would be originating a transfer of funds (i.e., payment for the room) whose ultimate beneficiary would be an entity on the CRL.

Indirect Financial Transactions

1. A Cuban beverage manufacturer on the CRL seeks to pay for goods provided by a fruit supply company that is not subject to U.S. jurisdiction. The payment is routed to the fruit supply company’s bank via a U.S. correspondent bank. This is a prohibited indirect financial transaction because the U.S. bank is acting as an intermediary in a transfer of funds that originates from an entity on the CRL.
2. A U.S. banking institution processes a payment from a non-U.S. person tourist for goods at a Cuban store on the CRL. This is a prohibited indirect financial transaction because the U.S. banking institution is acting as an intermediary in a transfer of funds where the ultimate beneficiary is an entity on the CRL.
3. A U.S. banking institution processes a payment from a non-U.S. person tourist to a Cuban hotel on the CRL. This is a prohibited indirect financial transaction because the U.S. banking institution is acting as an intermediary in a transfer of funds where the ultimate beneficiary is an entity on the CRL.

Please note that § 515.201(c) also prohibits any transaction for the purpose or which has the effect of evading or avoiding § 515.209’s prohibition on engaging in a direct or indirect financial transaction with entities or subentities on the CRL.

Date Updated: September 29, 2026