IRB No. 532
To: Our Clients and Friends
December 19, 2014
President Obama Announces Changes To U.S. - Cuba Relations
On December 17, 2014, President Obama announced a major shift in the Administration's
foreign policy toward Cuba. Citing the failure of the current sanctions regime to promote
democracy in Cuba and the absence of other nations in enacting similar sanctions, the
President announced that the Administration would undertake a number of new measures,
including re-establishing diplomatic relations between the two countries, setting up a U.S.
embassy in Cuba, examining Cuba's status as a state supporter of terrorism, and loosening the
current U.S. sanctions against Cuba and Cuban nationals.
The announcement, coming on the heels of the release of two Americans imprisoned in Cuba
and three Cuban agents imprisoned in the United States, identified the following changes,
among others, aimed at easing the sanctions currently administered by the U.S. Department
of the Treasury, Office of Foreign Assets Control ("OFAC") and the U.S. Department of
Commerce, Bureau of Industry and Security ("BIS"):
 Remittance levels will be raised from $500 to $2000 and the remittance forwarders no
longer will require a license to forward money to Cuba;
 Exports of “building materials for private residential construction, goods for use by
private sector Cuban entrepreneurs, and agricultural equipment” will be permitted;
 General licenses will be issued for travelers in the 12 current categories of authorized
travel (which do not include going to Cuba for general tourism);
 Travelers will be able come back to the United States with $400 in goods, of which
only $100 will be able to be alcohol or tobacco products;
 Banks will be able to open correspondent accounts in Cuban financial institutions to
facilitate authorized transactions;
 Sales of cash against documents of title (e.g., bills of lading) will be permitted for
authorized exports and the old rule that cash had to be paid prior to the shipment of
the goods will be removed;
 U.S. companies will be able to invest in infrastructure for commercial telephone and
internet services in Cuba; and
 Foreign vessels engaging in humanitarian trade with Cuba will be able to enter U.S.
ports immediately and not be subject to the 180-day waiting period under the current
rules.
In response to the President's announcement, OFAC issued an FAQ indicating that it will
implement Treasury-specific changes to the sanctions through amendments to the Cuban
Assets Control Regulations in 31 CFR Part 515. OFAC warned that none of the announced
changes will take effect until the new regulations are issued.
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In addition to awaiting for OFAC and BIS to revise the relevant regulations, the
Administration is also facing backlash from members of Congress who disagree with this
change in policy. Several members of Congress, including Speaker of the House John
Boehner and Senators Lindsay Graham and Marco Rubio, have indicated that they intend to
block the new policy entirely, including the use of funds to open a U.S. embassy in Cuba.
It appears that only time will tell the precise effect of this announced change in policy - and
whether it will be effective to accomplish the stated goals.
__________________________________________
Prepared by:
Anita Esslinger
anita.esslinger@bryancave.com
202 508 6333/+44 20 3207 1224
Megan Gajewski Barnhill
megan.gajewski@bryancave.com
202.508.6302
Bryan Cave’s International Regulatory Bulletins are available online at www.bryancave.com
Please visit our Global Anti-Corruption website at www.bryancave.com/gact
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Bryan Cave LLP International Trade Client Service Group
Los Angeles
Shanghai
Evan Y. Chuck, Partner, CSG Leader
David Stepp, Partner
Nicole Simonian, Partner
Chris Dueringer, Partner
Andrew Klungness, Partner
Kevin Lombardo, Partner
Michael Zara, Associate
Jackson Pai, Associate
Evan Y. Chuck, Partner
Ming Zu, Partner
Zhongdong Zhang, Principal
Yi Huang, Associate
Frank Luo, Associate
Min Lan, Director of Economic Analysis*
Ye Zhou, Director PRC Tax Consultant
Jane Liang, PRC Consultant
Feng Zhao, PRC Consultant
Washington
Stanley Marcuss, Partner
Daniel Schwartz, Partner
Susan Kovarovics, Partner
Anita Esslinger, Partner
Clif Burns, Counsel
Megan Gajewski, Associate
Lloyd Grove, Associate
Chicago
Nicola Fiordalisi, Partner
Patricia Hanson, Counsel
St. Louis
Fred Bartelsmeyer, Partner
New York
Singapore
David Stepp, Partner
Paris
Joseph Smallhoover, Partner
Frankfurt
Tobias Fenck, Partner
Hamburg
Dr. Michael Leue, Partner
Dr. Staffan Wegdell, Counsel
Martin Bosse, Associate
Jana Fuchs, Associate
Carolyn Krampitz, Associate
Alexandra Rose, Associate
Judith Rinearson, Partner
Hassan Albakri, Partner
London
Atlanta
Anita Esslinger, Partner
Joel Williams, Partner
Robert Lystad, Associate
Denver
Jim Cress, Partner
*Non-legal professionals
Note: This Bulletin is intended solely for general informational purposes and should not be construed as, or used as a substitute for, legal
advice with respect to specific transactions. Such advice requires a detailed analysis of applicable requirements and an evaluation of
precise factual information. We do not undertake to keep recipients advised as to all relevant legal developments. This Bulletin may be
construed as an advertisement or solicitation. ©2009 Bryan Cave LLP. All rights reserved.
Bryan Cave’s International Regulatory Bulletins are available online at www.bryancave.com
Please visit our Global Anti-Corruption website at www.bryancave.com/gact
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