New federal regulations promulgated at the end of January will permit greater travel to Cuba by American citizens and entities. The new rules also permit Americans to transmit increased remittances to Cuba. A broad range of entities stand to benefit from these changes, from those involved in the travel industry, including aviation companies, to educational and religious entities. In addition, President Barack Obama has signaled that these changes are one more step toward his goal of dismantling the Cuban embargo. Understanding the restrictions and monitoring future developments will enable companies to be well positioned if and when additional changes occur.

Background

On January 14, 2011, President Obama issued a statement entitled, “Reaching Out to the Cuban People,” directing that certain revisions be made to restrictions on travel and remittances to Cuba. These changes took effect on January 28, 2011, with the promulgation of new regulations by the Treasury Department’s Office of Foreign Assets Control (OFAC) and the Department of Homeland Security’s US Customs and Border Protection (CBP). Earlier in 2009, the Obama Administration had made changes to the travel restrictions, as well as the remittance regulations. The announcement on January 14 furthers the Administration’s goal of increasing engagement with the people of Cuba.

Authority to Change the Terms of the Embargo

The authority to remove the U.S. embargo against Cuba rests with the Legislative Branch, since lifting the embargo would require legislative action. The Executive Branch, however, possesses the authority to alter the terms of embargo-related restrictions, such as travel.

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