Yes, under certain circumstances. Persons subject to U.S. jurisdiction may engage in transactions in U.S. dollars in Cuba or with Cuban nationals with respect to activity that is authorized pursuant to the Cuban Assets Control Regulations (CACR). For example, payments for telecommunications services in Cuba provided pursuant to 31 CFR § 515.542 may be provided in U.S. dollars. Further, the use of U.S. dollars for transactions that are exempt from the prohibitions of, or authorized by, the CACR is also allowed. For example, payments related to the importation or exportation of informational materials as defined in 31 CFR § 515.332, such as books or musical recordings, may be made in U.S. dollars.
Additionally, the May 29, 2024 amendment to section 515.584(d) of the CACR authorizes banking institutions subject to U.S. jurisdiction to process transactions originating and terminating outside the United States, provided that neither the originator nor the beneficiary is a person subject to U.S. jurisdiction (“U-turn general license”). As a result, transactions related to third-country commerce involving Cuba or Cuban nationals may be processed in U.S. dollars through the U.S. financial system via banking institutions located in the United States that serve as intermediary banks, provided that neither the originator nor the beneficiary is a person subject to U.S. jurisdiction. For more information on the “U-turn” general license, please see FAQ 757.
OFAC expects U.S. banks, including their foreign branches and subsidiaries, to conduct due diligence on their own direct customers (including, for example, ownership structure (for entities), proof of citizenship (for individuals), and address information to confirm that the transactions being processed are consistent with the U-turn general license. All banks, including those acting solely as intermediaries, should screen against the OFAC SDN List and their own internal filters. In cases where the remitter or beneficiary of the transaction is not a direct customer, the U.S. banking institution that is acting as an intermediary may rely on the remitter’s or beneficiary’s address as stated in the transaction to determine whether the remitter or beneficiary is a person subject to U.S. jurisdiction, unless the U.S. banking institution knows or has reason to know that the remitter or beneficiary of a transaction is a person subject to U.S. jurisdiction. OFAC will consider the totality of the circumstances surrounding the bank’s processing of transactions where a bank is acting solely as an intermediary and fails to block a prohibited transaction engaged in by a person subject to U.S. jurisdiction, including the factors listed above, to determine what, if any, enforcement action to take against the bank. Note, however, that transactions meeting the requirements of 31 CFR § 515.584(d) may be processed notwithstanding the involvement of a specially designated national of Cuba, as defined in 31 CFR § 515.306, in the transaction. The examples below illustrate some of the transactions and parties that may use the U-turn general license.
Date Updated: August 27, 2024