The U.S. Department of Finance announced new sanctions against Cuba on Tuesday, adding financial restrictions and tighter controls on travel by Americans to the island.
Under the measures, American banks can no longer process dollar payments when both the sender and recipient are outside the USA and none of the parties involved is an American citizen. Cuban business operators are also barred from holding accounts at American banks.
The transaction restriction applies to payments in dollars even where the sender and recipient are both outside the USA. Its stated condition is that none of the parties involved is an American citizen.
The measure concerning bank accounts applies to Cuban business operators seeking to hold accounts in American banks. The announcement did not specify the effective date for the new restrictions.
The Trump administration is also narrowing the travel options available to Americans visiting Cuba. Cultural exchange programmes and people-to-people travel will now require approval.
Business meetings and conferences involving travel to Cuba will also require approval under the new rules. The approval requirements cover cultural exchange, people-to-people travel, business meetings and conferences involving travel to Cuba.
The announcement therefore sets separate conditions for several forms of travel to the island. It does not state the process for securing approval for cultural exchange programmes, people-to-people travel, business meetings or conferences.
The announcement adds to restrictions already imposed on Cuba. An oil blockade against the country has been in effect since January.
The new measures add financial and travel prohibitions to that existing restriction. The Department of Finance did not set out a rationale or stated justification for the new sanctions in the information provided.
The stated information also did not specify the wider enforcement arrangements, the full range of any further measures, or the Cuban government’s response. It gave no assessment of the effect of the new restrictions.
The measures form part of the Trump administration’s restrictions targeting Cuba. Their immediate terms concern the processing of certain dollar payments by American banks, Cuban business accounts in those banks, and approval for specified travel to Cuba.
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