On January 15, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) released important updates to the Cuban Assets Control Regulations (“CACR”). The U.S. Department of Commerce’s Bureau of Industry and Security (“BIS”) simultaneously amended its Export Administration Regulations (“EAR”) related to Cuba. These amendments took effect on January 16, 2015 and follow through on President Obama’s announcement, previously reported by King & Spalding in December 2014, that the United States would begin normalizing its relations with Cuba.

While the Obama Administration has taken regulatory steps to implement its policy of engagement with Cuba, lawmakers have raised questions as to the legality of the President’s authority to take these actions given other U.S. statutes. For example, Senators Dan Coats (R-Ind.) and Marco Rubio (RFla.) recently asked Secretary Lew of the Treasury Department to clarify the legal authority of the Administration to authorize the opening of correspondent bank accounts, the use of U.S. debit and credit cards in Cuba, the investment in telecommunications infrastructure, and other actions reflected in the updated regulations.