US Tightens Cuba Sanctions, Expanding Pressure On Havana

The Trump administration has tightened its economic pressure on Cuba, putting new restrictions on financial transactions and expanding the range of foreign individuals and entities that can face US sanctions over their dealings with the Cuban government.

The Treasury Department’s Office of Foreign Assets Control (OFAC) published new Cuba Sanctions Regulations this week to implement President Donald Trump’s Executive Order 14404, while also revising the longstanding Cuban Assets Control Regulations.

The measures give Washington additional authority to target foreign persons involved in specified sectors of the Cuban economy, including energy, defence, metals and mining, financial services and security. They also cover activities that the US government determines support Cuba’s military, intelligence or security apparatus.

The revised rules tighten the financial restrictions surrounding Cuba. US financial institutions are no longer authorised to process certain Cuba-related transactions that begin and end outside the United States, limiting a channel previously available for some international transactions involving Cuba.

OFAC has also removed an authorisation covering certain accounts maintained by US banks for Cuban private-sector entrepreneurs. The agency said funds and accounts falling within the revised restrictions must be blocked unless another authorisation applies.

The changes also broaden the circumstances under which foreign entities can be added to the State Department’s Cuba Restricted List. The list covers entities linked to Cuba’s military, intelligence and security services where US authorities determine that transactions would disproportionately benefit those institutions.

The administration has framed the measures as part of a broader effort to pressure Havana over its domestic policies and restrict access to financial resources that Washington says support the Cuban government and its security apparatus.

"The Trump Administration remains committed to leveraging all available sanctions authorities to drive meaningful reform in Cuba," State Department spokesman Thomas Pigott said.

The latest measures come as the administration seeks to increase economic pressure on Havana while maintaining exemptions and authorisations for certain activities. OFAC said the new executive order operates alongside the existing Cuba sanctions regime rather than replacing it.

The regulations take effect on September 30, adding another layer to the extensive US sanctions framework that has governed economic relations with Cuba for decades.

Source: FSX Business News