81 FR 13989 - Cuban Assets Control Regulations

DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control

Federal Register Volume 81, Issue 51 (March 16, 2016)

The Department of the Treasury's Office of Foreign Assets Control (OFAC) is amending the Cuban Assets Control Regulations to further implement elements of the policy announced by the President on December 17, 2014 to engage and empower the Cuban people. Among other things, these amendments further facilitate travel to Cuba for authorized purposes, expand the range of authorized financial transactions, and authorize additional business and physical presence in Cuba. These amendments also implement certain technical and conforming changes.

[Federal Register Volume 81, Number 51 (Wednesday, March 16, 2016)]
[Rules and Regulations]
[Pages 13989-13994]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-06018]


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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 
further implement elements of the policy announced by the President on 
December 17, 2014 to engage and empower the Cuban people. Among other 
things, these amendments further facilitate travel to Cuba for 
authorized purposes, expand the range of authorized financial 
transactions, and authorize additional business and physical presence 
in Cuba. These amendments also implement certain technical and 
conforming changes.

DATES: Effective: March 16, 2016.

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 and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (www.treasury.gov/ofac). Certain general 
information pertaining to OFAC's sanctions programs also is available 
via facsimile through a 24-hour fax-on-demand service, tel.: 202-622-
0077.

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. 4301-4341). OFAC has 
amended the Regulations on numerous occasions.
    Most recently, on January 16, June 15, and September 21, 2015, and 
January 27, 2016, OFAC amended the Regulations, in coordinated actions 
with the Department of Commerce, to implement certain policy measures 
announced by the President on December 17, 2014 to further engage and 
empower the Cuban people. Today, OFAC and the Department of Commerce 
are taking additional coordinated actions in support of the President's 
Cuba policy.
    OFAC is making additional amendments to the Regulations with 
respect to travel and related transactions, financial transactions, 
business and physical presence, and certain other activities, as set 
forth below.

Travel and Related Transactions

    Individual people-to-people educational travel. OFAC is amending 
section 515.565(b) to remove the requirement that people-to-people 
educational travel be conducted under

[[Page 13990]]

the auspices of an organization that sponsors such exchanges. This 
section now authorizes individuals to travel to Cuba provided that, 
among other things, the traveler engage while in Cuba in a full-time 
schedule of educational exchange activities that are intended to 
enhance contact with the Cuban people, support civil society in Cuba, 
or promote the Cuban people's independence from Cuban authorities, and 
that will result in meaningful interaction between the traveler and 
individuals in Cuba. The predominant portion of the activities engaged 
in by the traveler must not be with certain Government of Cuba or Cuban 
Communist Party officials. Persons relying upon this authorization must 
retain records related to the authorized travel transactions, including 
records demonstrating a full-time schedule of authorized activities.
    Payment of salaries. OFAC is amending section 515.571 to remove the 
limitation on the receipt of compensation in excess of amounts covering 
living expenses and the acquisition of goods for personal consumption 
by a Cuban national present in the United States in a non-immigrant 
status or pursuant to other non-immigrant travel authorization issued 
by the U.S. government. New section (a)(5)(i) explicitly authorizes the 
receipt of any salary or other compensation consistent with the 
individual's non-immigrant status or other non-immigrant travel 
authorization, provided that the recipient is not subject to any 
special tax assessment by the Cuban government in connection with the 
receipt of the salary or other compensation. New section 515.571(e) 
authorizes all transactions related to the sponsorship or hiring of a 
Cuban national to work in the United States and provides that an 
employer may not make additional payments to the Cuban government in 
connection with the sponsorship or hiring of a Cuban national. Section 
515.571(e) also authorizes transactions in connection with the filing 
of an application for non-immigrant travel authorization. OFAC is also 
making conforming edits in section 515.560(d)(3) and the Note to 
section 515.565(a)(5).
    Dealings in merchandise subject to section 515.204, including 
Cuban-origin goods, for personal use. OFAC is adding section 515.585(c) 
to authorize individuals who are persons subject to U.S. jurisdiction 
and who are located in a third country to engage in the purchase or 
acquisition of merchandise subject to the prohibitions in section 
515.204, including Cuban-origin goods, for personal consumption while 
in a third country, and to receive or obtain services from Cuba or a 
Cuban national that are ordinarily incident to travel and maintenance 
within a third country. This provision does not authorize the 
importation of such merchandise into the United States, including as 
accompanied baggage. OFAC is making a conforming change to section 
515.410.

Financial Transactions

    U-turn payments through the U.S. financial system. OFAC is amending 
section 515.584(d) to authorize U-turn transactions in which Cuba or a 
Cuban national has an interest to be conducted through the U.S. 
financial system. This provision authorizes funds transfers from a bank 
outside the United States that pass through one or more U.S. financial 
institutions before being transferred to a bank outside the United 
States where neither the originator nor the beneficiary is a person 
subject to U.S. jurisdiction. Transactions through the U.S. financial 
system that do not meet these criteria, including all transactions 
where the originator or beneficiary is a person subject to U.S. 
jurisdiction, remain prohibited unless otherwise authorized or exempt 
under the Regulations. OFAC is also making conforming edits to section 
515.584(e), regarding unblocking of certain previously blocked funds 
transfers.
    Processing of U.S. dollar monetary instruments. OFAC is adding new 
section 515.584(g) to authorize U.S. banking institutions to process 
U.S. dollar monetary instruments presented indirectly by Cuban 
financial institutions. Correspondent accounts used for transactions 
authorized pursuant to this section may be denominated in U.S. dollars. 
This section does not authorize banking institutions subject to U.S. 
jurisdiction to open correspondent accounts for banking institutions 
that are nationals of Cuba.
    Certain bank accounts on behalf of a Cuban national. OFAC is adding 
new section 515.584(h) to authorize banking institutions to open and 
maintain accounts solely in the name of a Cuban national located in 
Cuba for the purposes only of receiving payments in the United States 
in connection with transactions authorized pursuant to or exempt from 
the prohibitions of this part and remitting such payments to Cuba. This 
provision would allow, for example, a Cuban national author located in 
Cuba to open an account with a bank or online payment platform in the 
United States to receive payments for sales of her book. This provision 
is in addition to the two existing authorizations for banking 
institutions to operate certain accounts on behalf of certain Cuban 
nationals. See Note to paragraph (a) of section 515.571(a)(5) and 
section 515.585(b). To avoid confusion, OFAC also is making conforming 
edits to the Note to section 515.571(a)(5) to clarify that all three 
account authorizations extend to banking institutions.

Business and Physical Presence

    OFAC is amending section 515.573 to authorize additional persons 
subject to U.S. jurisdiction to establish a business and physical 
presence in Cuba.
    Business presence. In September 2015, OFAC amended sections 515.542 
and 515.578 to authorize persons subject to U.S. jurisdiction to 
establish and maintain a business presence in Cuba, including through 
subsidiaries, branches, offices, joint ventures, franchises, and agency 
or other business relationships with any Cuban individual or entity, to 
facilitate the provision of authorized telecommunications and internet-
based services. OFAC is now expanding this authorization to establish a 
business presence to include the following additional categories of 
persons subject to U.S. jurisdiction (all of whom were previously 
authorized to establish a physical presence): exporters of goods 
authorized for export or reexport to Cuba by section 515.533 or section 
515.559 or that are otherwise exempt; entities providing mail or parcel 
transmission services authorized by section 515.542(a) or providing 
cargo transportation services in connection with trade involving Cuba 
authorized by or exempt from the prohibitions of this part; and 
providers of travel and carrier services authorized by section 515.572. 
OFAC is clarifying that the business and physical presence 
authorization for providers of internet-based services extends to 
persons engaged in transactions authorized by section 515.578(e). OFAC 
is removing the prior provisions authorizing business presence that 
were located in sections 515.542 and 515.578 and consolidating these 
authorizations in section 515.573.
    Physical presence. In September 2015, OFAC amended section 515.573 
to authorize certain persons subject to U.S. jurisdiction to establish 
a physical presence, such as an office or other facility, in Cuba, to 
facilitate authorized transactions. OFAC is now expanding this 
authorization to include the following additional categories of persons 
subject to U.S. jurisdiction: entities engaging in non-commercial 
activities authorized by section 515.574 (Support for the Cuban 
People); entities engaging in humanitarian projects set

[[Page 13991]]

forth in section 515.575(b) (Humanitarian projects); and private 
foundations or research or educational institutes engaging in 
transactions authorized by section 515.576. OFAC is also adding a note 
to clarify that the activities that may be carried out by exporters of 
items exported or reexported pursuant to authorization by the 
Department of Commerce or OFAC, or that are otherwise exempt, at a 
physical presence authorized by this section include the assembly of 
such items.

Other Transactions

    Grants and awards. OFAC is adding a new provision in section 
515.565 to authorize the provision of educational grants, scholarships, 
or awards to a Cuban national or in which Cuba or a Cuban national 
otherwise has an interest. This could include, for example, the 
provision of educational scholarships for Cuban students to pursue 
academic studies for a degree. OFAC is also adding a note to section 
515.575(b) to clarify that the existing authorization includes 
provision of grants or awards for humanitarian projects in or related 
to Cuba that are designed to directly benefit the Cuban people as set 
forth in that section.
    Telecommunications and internet-related services. OFAC is amending 
section 515.578 to allow the importation of Cuban-origin software.
    OFAC is also making several technical and conforming edits. In 
particular, OFAC is correcting a typographical error in section 
515.533(d)(2). OFAC is also conforming the language of the general 
authorization in section 515.559(d) to the corresponding authorization 
in section 515.533(d).

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 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 section 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 is revised 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 C--Definitions


Sec.  515.329  [Amended]

0
2. In Sec.  515.329, remove ``]'' at the end of the sentence.

Subpart D--Interpretations

0
3. Revise Sec.  515.410 to read as follows:


Sec.  515.410  Dealing abroad in Cuban-origin commodities.

    Section 515.204 prohibits, unless licensed, the importation of 
commodities of Cuban origin. It also prohibits, unless licensed, 
persons subject to the jurisdiction of the United States from 
purchasing, transporting or otherwise dealing in commodities of Cuban 
origin which are outside the United States. Attention is directed to 
Sec.  515.585, which authorizes certain dealings in commodities of 
Cuban origin outside the United States.

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

0
4. In Sec.  515.505, revise paragraph (a)(4) to read as follows:


Sec.  515.505  Certain Cuban nationals unblocked.

    (a) * * *
    (4) Any entity, office, or other sub-unit authorized pursuant to 
Sec.  515.573; and
* * * * *

0
5. In Sec.  515.533, revise paragraph (d)(2) introductory text to read 
as follows:


Sec.  515.533  Exportations from the United States to Cuba; 
reexportations of 100% U.S.-origin items to Cuba; negotiation of 
executory contracts.

* * * * *
    (d) * * *
    (2) The travel-related transactions set forth in Sec.  515.560(c) 
and such additional transactions as are directly incident to the 
facilitation of the temporary sojourn of aircraft and vessels as 
authorized by 15 CFR 740.15 (License Exception Aircraft, Vessels and 
Spacecraft) or pursuant to other authorization by the Department of 
Commerce for travel between the United States and Cuba authorized 
pursuant to this part, including travel-related transactions by 
personnel who are persons subject to U.S. jurisdiction and who are 
required for normal operation and service aboard a vessel or aircraft, 
as well as personnel who are persons subject to U.S. jurisdiction and 
who are required to provide services to a vessel in port or aircraft on 
the ground, are authorized, provided that:
* * * * *

0
6. In Sec.  515.542, remove and reserve paragraph (f) and revise Notes 
1 and 2 to Sec.  515.542 to read as follows:


Sec.  515.542  Mail and telecommunications-related transactions.

* * * * *

    Note 1 to Sec.  515.542:  For an authorization of travel-related 
transactions that are directly incident to the conduct of market 
research, commercial marketing, sales or contract negotiation, 
accompanied delivery, installation, leasing, or servicing in Cuba of 
items consistent with the export or reexport policy of the 
Department of Commerce, see Sec.  515.533(d). For an authorization 
of travel-related transactions that are directly incident to 
participation in professional meetings, including where such 
meetings relate to telecommunications services or other activities 
authorized by paragraphs (b) through (e) of this section, see Sec.  
515.564(a).


    Note 2 to Sec.  515.542:  For general licenses authorizing 
physical and business presence in Cuba for certain persons, see 
Sec.  515.573. An authorization related to business presence was 
previously included in this section. For an authorization of certain 
internet-related services, see Sec.  515.578.


0
7. In Sec.  515.559, revise paragraph (d) to read as follows:

[[Page 13992]]

Sec.  515.559  Certain export and import transactions by U.S.-owned or 
-controlled foreign firms.

* * * * *
    (d) General license. Travel-related transactions set forth in Sec.  
515.560(c) and such other transactions as are directly incident to 
market research, commercial marketing, sales or contract negotiation, 
accompanied delivery, installation, leasing, or servicing in Cuba of 
exports that are consistent with the licensing policy under paragraph 
(a) of this section are authorized, provided that the traveler's 
schedule of activities does not include free time or recreation in 
excess of that consistent with a full-time schedule.
* * * * *

0
8. In Sec.  515.560, revise paragraph (d)(3) to read as follows:


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

* * * * *
    (d) * * *
    (3) Salaries or other compensation earned by the Cuban national up 
to any amount that can be substantiated through payment receipts as 
authorized in Sec.  515.571(a)(5).
* * * * *

0
9. In Sec.  515.565:
0
a. Revise paragraph (a)(5);
0
b. Redesignate paragraphs (a)(11) and (12) as (a)(12) and (13), 
respectively;
0
c. Add new paragraph (a)(11);
0
d. Revise newly redesignated paragraph (a)(12);
0
e. Revise paragraph (b);
0
f. Revise the Note to Sec.  515.565(a) and (b); and
0
g. Revise paragraph (c).
    The revisions and addition read as follows:


Sec.  515.565  Educational activities.

    (a) * * *
    (5) 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)(5): 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.

* * * * *
    (11) Provision of educational grants, scholarships, or awards to a 
Cuban national or in which Cuba or a Cuban national otherwise has an 
interest; and
    (12) The organization of, and preparation for, activities described 
in paragraphs (a)(1) through (a)(11) of this section by employees or 
contractors of the sponsoring organization that is a person subject to 
U.S. jurisdiction;
* * * * *
    (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) Travel-related transactions pursuant to this authorization must 
be for the purpose of engaging, while in Cuba, in a full-time schedule 
of activities intended to enhance contact with the Cuban people, 
support civil society in Cuba, or promote the Cuban people's 
independence from Cuban authorities;
    (2) Each traveler has a full-time schedule of educational exchange 
activities that will result in meaningful interaction between the 
traveler and individuals in Cuba;
    (3) The predominant portion of the activities engaged in by 
individual travelers is not with a prohibited official of the 
Government of Cuba, as defined in Sec.  515.337 of this part, or a 
prohibited member of the Cuban Communist Party, as defined in Sec.  
515.338 of this part;
    (4) For travel conducted under the auspices of an organization that 
is a person subject to U.S. jurisdiction that sponsors such exchanges 
to promote people-to-people contact, an employee, paid consultant, or 
agent of the sponsoring organization must accompany each group 
traveling to Cuba to ensure that each traveler has a full-time schedule 
of educational exchange activities; and

    Note to Sec.  515.565(b)(4):  An organization that sponsors and 
organizes trips to Cuba in which travelers engage in individually 
selected and/or self-directed activities would not qualify for the 
general license. Authorized trips are expected to be led by the 
organization and to have a full-time schedule of activities in which 
the travelers will participate.

    (5) 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 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 (3) of this 
section. In the case of an individual 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 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 (3) 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 Sec.  515.565(b):  An organization wishes to 
sponsor and organize educational exchanges not involving academic 
study pursuant to a degree program for individuals to learn side-by-
side with Cuban individuals in areas such as environmental 
protection or the arts. The travelers will have a full-time schedule 
of educational exchange activities that will result in meaningful 
interaction between the travelers and individuals in Cuba. The 
organization's activities qualify for the general license, and the 
individual may rely on the entity sponsoring the travel to satisfy 
his or her recordkeeping requirement.
    Example 2 to Sec.  515.565(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 
to have extended dialogue with local city planners and architects to 
learn about historical restoration projects in Old Havana. The 
traveler will have a full-time schedule of such educational exchange 
activities that will result in meaningful interaction between the 
traveler and individuals in Cuba. The individual's activities 
qualify for the general license, provided that the individual 
satisfies the recordkeeping requirement.
    Example 3 to Sec.  515.565(b):  An individual plans to travel to 
Cuba to participate in discussions with Cuban farmers and produce 
sellers about cooperative farming and agricultural practices and 
have extended dialogue with religious leaders about the influence of 
African traditions and religion on society and culture. The traveler 
fails to keep any records of the travel. Although the traveler will 
have a full-time schedule of educational exchange activities that 
will result in meaningful interaction between the traveler and 
individuals in Cuba, the traveler's failure to keep records means 
that the individual's activities do not qualify for the general 
license.
    Example 4 to Sec.  515.565(b):  An individual plans to travel to 
Cuba to rent a bicycle to explore the streets of Havana, engage in 
brief exchanges with shopkeepers while making purchases, and have 
casual conversations with waiters at restaurants and hotel staff. 
None of these activities are educational exchange activities that 
will result in meaningful interaction between the traveler and 
individuals in Cuba, and the traveler's trip does not qualify for 
the general license.
    Example 5 to Sec.  515.565(b):  An individual plans to travel to 
Cuba to participate in discussions with Cuban farmers and produce 
sellers about cooperative farming and agricultural practices and 
have extended dialogue with religious leaders about the influence of 
African traditions and religion on society and culture. The 
individual also plans to spend a few days engaging in brief 
exchanges with Cuban food vendors while

[[Page 13993]]

spending time at the beach. Only some of these activities are 
educational exchange activities that will result in meaningful 
interaction between the traveler and individuals in Cuba, and the 
traveler therefore does not have a full-time schedule of such 
activities on each day of the trip. The trip does not qualify for 
the general license.

    Note to Sec.  515.565(a) and (b):  Except as provided in Sec.  
515.565(b)(5), each person relying on the general authorizations in 
these paragraphs, including entities sponsoring travel pursuant to 
the authorization in Sec.  515.565(b), 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) Transactions related to activities that are primarily tourist-
oriented are not authorized pursuant to this section.
* * * * *

0
10. In Sec.  515.571, revise paragraph (a)(5) and add paragraph (e) to 
read as follows:


Sec.  515.571  Certain transactions incident to travel to, from, and 
within the United States by Cuban nationals.

    (a) * * *
    (5) All transactions ordinarily incident to the Cuban national's 
presence in the United States in a non-immigrant status or pursuant to 
other non-immigrant travel authorization issued by the U.S. government.
    (i) This paragraph (a)(5) authorizes the receipt of salary or other 
compensation by a national of Cuba consistent with the individual's 
non-immigrant status or non-immigrant travel authorization, provided 
that national of Cuba is not subject to any special tax assessments by 
the Cuban government in connection with the receipt of the salary or 
other compensation.
    (ii) Examples of other transactions authorized by this paragraph 
(a)(5) include: the payment of tuition to a U.S. educational 
institution by a national of Cuba issued a student (F-1) visa, and the 
rental of a stage by a group of Cubans issued performance (P-2) visas.

    Note to paragraph (a)(5):  This paragraph authorizes banking 
institutions, as defined in Sec.  515.314, to open and maintain 
accounts solely in the name of a Cuban national who is present in 
the United States in a non-immigrant status or pursuant to other 
non-immigrant travel authorization for use while the Cuban national 
is located in the United States in such status, and to close such 
accounts prior to departure. See paragraph (b) of this section for 
an authorization for banking institutions to maintain accounts 
opened pursuant to this paragraph while the Cuban national is 
located outside the United States.

* * * * *
    (e) The following transactions by or on behalf of a Cuban national 
are authorized:
    (1) All transactions related to the sponsorship or hiring of a 
Cuban national to work in the United States in a non-immigrant status 
or pursuant to other non-immigrant travel authorization issued by the 
U.S. government, except that an employer may not make payments to the 
Cuban government in connection with the sponsorship or hiring of a 
Cuban national; and
    (2) All transactions in connection with the filing of an 
application for non-immigrant travel authorization issued by the U.S. 
government.
* * * * *

0
11. In Sec.  515.573:
0
a. Revise the section heading;
0
b. Revise paragraph (a) introductory text;
0
c. Reedesignate paragraphs (b) and (c) as paragraphs (c) and (e);
0
d. Add new paragraphs (b) and (d); and
0
e. Revise newly redesignated paragraphs (c) and (e).
    The revisions and additions read as follows:


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

    (a) Physical presence: The persons listed in paragraphs (c) and (d) 
of this section are authorized to engage in all transactions necessary 
to establish and maintain a physical presence in Cuba to engage in 
transactions authorized pursuant to or exempt from the prohibitions of 
this part, including the following:
* * * * *
    (b) Business presence. Except for transactions prohibited by Sec.  
515.208, the persons listed in paragraph (c) of this section are 
authorized to engage in all transactions necessary to establish and 
maintain a business presence in Cuba to engage in transactions 
authorized pursuant to or exempt from the prohibitions of this part, 
including the following: establishing and maintaining subsidiaries, 
branches, offices, joint ventures, franchises, and agency or other 
business relationships with any Cuban national, and entering into all 
necessary agreements or arrangements with such entity or individual.
    (c) Persons authorized to establish physical and business presence. 
The following persons subject to U.S. jurisdiction may engage in the 
transactions authorized pursuant to paragraphs (a) and (b) of this 
section, provided that such transactions may only be engaged in to 
support transactions authorized by or exempt from the prohibitions of 
this part:
    (1) Providers of telecommunications services authorized by Sec.  
515.542(b) through (d) or persons engaged in activities authorized by 
Sec.  515.542(e);
    (2) Providers of internet-based services authorized by Sec.  
515.578(a) or persons engaged in activities authorized by Sec.  
515.578(c) or (e);
    (3) Exporters of goods authorized for export or reexport to Cuba by 
Sec.  515.533 or Sec.  515.559 or that are otherwise exempt;

    Note to paragraph (c)(3):  This section authorizes the assembly 
in Cuba of items exported or reexported pursuant to authorization by 
the Department of Commerce or OFAC or that are otherwise exempt but 
does not authorize the incorporation of Cuban-origin goods into 
items assembled pursuant to this section or the processing of raw 
materials into finished goods in Cuba.

    (4) Entities providing mail or parcel transmission services 
authorized by Sec.  515.542(a) or providing cargo transportation 
services in connection with trade involving Cuba authorized by or 
exempt from the prohibitions of this part; and
    (5) Providers of travel and carrier services authorized by Sec.  
515.572.

    Note to paragraph (c)(5): This authorization does not allow 
persons subject to U.S. jurisdiction to establish a physical or 
business presence in Cuba for the purpose of providing lodging 
services in Cuba.

    (d) Persons authorized to establish physical presence. The 
following persons subject to U.S. jurisdiction may engage in the 
transactions authorized pursuant to paragraph (a) of this section, 
provided that such transactions may only be engaged in to support 
transactions authorized by or exempt from the prohibitions of this 
part:
    (1) News bureaus whose primary purpose is the gathering and 
dissemination of news to the general public authorized by paragraph (e) 
of this section;
    (2) Entities organizing or conducting educational activities 
authorized by Sec.  515.565(a);
    (3) Religious organizations engaging in religious activities in 
Cuba authorized by Sec.  515.566;
    (4) Entities engaging in non-commercial activities authorized by 
Sec.  515.574 (Support for the Cuban People);
    (5) Entities engaging in humanitarian projects set forth in Sec.  
515.575(b) (Humanitarian projects); and

[[Page 13994]]

    (6) Private foundations or research or educational institutes 
engaging in transactions authorized by Sec.  515.576.
* * * * *

0
12. In Sec.  515.575, redesignate the Note to paragraph (a) as Note 1 
to paragraph (a) and add Note 2 to paragraph (a) to read as follows:


Sec.  515.575  Humanitarian projects.

* * * * *
    (a) * * *

    Note 2 to paragraph (a):  Transactions authorized by this 
paragraph include the provision of grants or awards for humanitarian 
projects in or related to Cuba that are designed to directly benefit 
the Cuban people as set forth in paragraph (b) of this section.

* * * * *

0
13. In Sec.  515.577, revise paragraph (e) to read as follows:


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

* * * * *
    (e) Section 515.564(a)(2) authorizes the travel-related 
transactions set forth in Sec.  515.560(c) and such additional 
transactions that are directly incident to attendance at or 
organization of professional meetings that are necessary and ordinarily 
incident to the publishing and marketing of written publications.

0
14. In Sec.  515.578, revise the section heading, paragraph (d), and 
add a Note to Sec.  515.578 to read as follows:


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

* * * * *
    (d) Software. The importation into the United States of Cuban-
origin software is authorized.
* * * * *

    Note to Sec.  515.578:  For general licenses authorizing 
physical and business presence in Cuba for certain persons, see 
Sec.  515.573. An authorization related to business presence was 
previously included in this section. For an authorization of certain 
telecommunications-related services, see Sec.  515.542.


0
15. In Sec.  515.584, revise paragraph (d) and paragraph (e) 
introductory text, add paragraph (g), a Note to paragraph (g), and 
paragraph (h) to read as follows:


Sec.  515.584  Certain financial transactions involving Cuba.

* * * * *
    (d) Funds transfers. Any banking institution, as defined in Sec.  
515.314, that is a person subject to U.S. jurisdiction is authorized to 
process funds transfers originating and terminating outside the United 
States, provided that neither the originator nor the beneficiary is a 
person subject to U.S. jurisdiction.
    (e) Unblocking of certain previously blocked funds transfers 
authorized. Any banking institution, as defined in Sec.  515.314, that 
is a person subject to U.S. jurisdiction is authorized to unblock and 
return to the originator or originating financial institution or their 
successor-in-interest previously blocked funds transfers that could 
have been processed pursuant to paragraph (d) of this section, Sec.  
515.562(b), or Sec.  515.579(b) if the processing of those transfers 
would have been authorized had they been sent under the current text of 
those provisions. Persons subject to U.S. jurisdiction unblocking funds 
transfers that were originally blocked on or after August 25, 1997, 
pursuant to this section must submit a report to the Department of the 
Treasury, Office of Foreign Assets Control, Attn: Sanctions Compliance 
& Evaluation Division, 1500 Pennsylvania Avenue NW., Freedman's Bank 
Building, Washington, DC 20220 within 10 business days from the date 
such funds transfers are released. Such reports shall include the 
following:
* * * * *
    (g) Any banking institution, as defined in Sec.  515.314, that is a 
person subject to U.S. jurisdiction is authorized to accept, process, 
and give value to U.S. dollar monetary instruments presented for 
processing and payment by a banking institution located in a third 
country that is not a person subject to U.S. jurisdiction or a Cuban 
national and that has received the U.S. dollar monetary instruments 
from a financial institution that is a national of Cuba for which it 
maintains a correspondent account and which received the U.S. dollar 
monetary instruments in connection with an underlying transaction that 
is authorized, exempt, or otherwise not prohibited by this part, such 
as dollars spent in Cuba by authorized travelers or a third-country 
transaction that is not prohibited by this part.

    Note to paragraph (g):  Correspondent accounts used for 
transactions authorized pursuant to Sec.  515.584(g) may be 
denominated in U.S. dollars.

    (h) Any banking institution, as defined in Sec.  515.314, that is a 
person subject to U.S. jurisdiction is authorized to open and maintain 
accounts solely in the name of a Cuban national located in Cuba for the 
purposes only of receiving payments in the United States in connection 
with transactions authorized pursuant to, or exempt from the 
prohibitions of, this part and remitting such payments to Cuba.

0
16. In Sec.  515.585, revise the section heading, add paragraph (c), 
and revise Note 3 to Sec.  515.585 to read as follows:


Sec.  515.585  Certain transactions in third countries.

* * * * *
    (c) Individuals who are persons subject to U.S. jurisdiction who 
are located in a third country are authorized to purchase or acquire 
merchandise subject to the prohibitions in Sec.  515.204, including 
Cuban-origin goods, for personal consumption while in a third country, 
and to receive or obtain services from Cuba or a Cuban national that 
are ordinarily incident to travel and maintenance within that country.

    Note to paragraph (c): This section does not authorize the 
importation of merchandise, including as accompanied baggage. Please 
see Sec.  515.544 for an authorization to import certain Cuban-
origin merchandise from a third country.

* * * * *

    Note 3 to Sec.  515.585:  Except as provided in paragraph (c) of 
this section, this section does not authorize any transactions 
prohibited by Sec.  515.204, including the purchase and sale of 
Cuban-origin goods.

* * * * *

    Dated: March 11, 2016.
John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2016-06018 Filed 3-15-16; 8:45 am]
 BILLING CODE 4810-AL-P