The United States has enacted new financial and travel restrictions on Cuba, reinstating measures discarded by the Biden administration that had allowed greater access to US banking for Cuban private entrepreneurs.
The changes, which took effect on Wednesday, were outlined by the Treasury Department’s Office of Foreign Assets Control (OFAC) in amendments to the Cuban Assets Control Regulations. These amendments prohibit US financial institutions from maintaining certain accounts for Cuban entrepreneurs and require that existing funds be blocked unless authorized otherwise.
The new regulations also revoke permissions for specific Cuba-related international payments to pass through US banks and tighten restrictions on educational and professional travel to the island. OFAC indicated that these amendments align with parts of former President Donald Trump’s Cuba policy, particularly a May 1 executive order aimed at individuals and entities deemed responsible for repression in Cuba and threats to US interests.
The new rules roll back measures from May 2024 that had permitted certain Cuban entrepreneurs to manage US bank accounts, even while in Cuba, intending to bolster the island’s private sector and improve financial services access. However, experts note the actual impact may be limited, as many US banks have been hesitant to work with Cuban businesses due to compliance concerns.
Additionally, the latest regulations remove authorization for U-turn transactions—payments that originate and conclude outside the US while passing through its financial institutions—reinstituting rules previously established under the Trump administration.
For travel, the alterations eliminate general authorization for group people-to-people educational travel and restrict other educational travel categories. Certain academic activities with accredited US institutions may still be permitted.
These measures follow a series of sanctions imposed by the Trump administration, including targeting Cuban President Miguel Díaz-Canel and state-owned entities involved in Cuba’s oil and gas sectors, and aim to broaden the restrictions affecting financial transactions and travel to Cuba. Secretary of State Marco Rubio underscored the administration’s stance by labeling Cuba a “failed state.”
