How does the September 30, 2026 amendment to the Cuban Assets Control Regulations (CACR) affect prohibitions related to the U.S. Department of State's [List of Restricted Entities and Subentities Associated with Cuba](https://www.state.gov/division-for-counter-threat-finance-and-sanctions/cuba-restricted-list) (Cuba Restricted List or CRL)?
OFAC's answer
Effective September 30, 2026, OFAC amended [§ 515.209](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-B/section-515.209) to reflect the expanded scope of activities for which the Secretary of State, as directed by the 2025 National Security Presidential Memorandum-5 (NSPM-5), may add entities or subentities to the [CRL](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.565). Specifically, the Secretary of State may now add to the [CRL](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.565) any entities or subentities that are under the control of, or act for or on behalf of, or for the benefit of, the Cuban military, intelligence, or security services or personnel and with which direct or indirect financial transactions would disproportionately benefit such services or personnel at the expense of the Cuban people or private enterprise in Cuba. Additionally, the prohibition at 31 CFR [§ 515.209](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-B/section-515.209) previously prohibited persons subject to U.S. jurisdiction from engaging in "direct financial transactions" with entities or subentities on the [CRL](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.565). Effective September 30, 2026, OFAC amended [§ 515.209](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-B/section-515.209) to also prohibit persons subject to U.S. jurisdiction from engaging in an "indirect financial transaction" with any entity or subentity on the [CRL](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.565). See the prohibition at [§ 515.209](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-B/section-515.209) and [FAQ 735](https://ofac.treasury.gov/faqs/735) for more information regarding a "direct" and "indirect" financial transaction. Further, to guard against evasion of the prohibition on direct or indirect transactions with entities or subentities on the [CRL](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.565), OFAC also amended [§ 515.201(c)](https://www.ecfr.gov/current/title-31/part-515/section-515.201#p-515.201(c)) to add a prohibition on any transaction that has the purpose or effect of evading or avoiding prohibitions on direct or indirect transactions with entities or subentities on the [CRL](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.565). To account for these changes, OFAC amended the following general licenses that previously only excluded direct financial transactions with entities or subentities on the [CRL](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.565) to now also exclude indirect financial transactions with such entities: [§§ 515.530](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.530) (powers of attorney); [515.534](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.534) (contingent contracts); [515.545](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.545) (information/informational materials); [515.560](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.560) (travel-related transactions); [515.561](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.561) (family visits); [515.564](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.564) (professional research); [515.565](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.565) (educational activities); [515.566](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.566) (religious activities); [515.567](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.567) (public performances); [515.572](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.572)(travel services); [515.573](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.573) (physical and business presence in Cuba); [515.574](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.574) (support for the Cuban people); [515.576](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.576) (private foundations or research or educational institutes); [515.577](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.577) (publishing); [515.578](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.578) (internet-based services); [515.581](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.581) (conferences in third countries); [515.584](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.584) (certain financial transactions); and [515.590](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.590) (certain grants, scholarships, and awards). For a complete description of what each general license authorizes and the restrictions that apply, see the aforementioned general licenses. OFAC also amended [31 CFR § 515.421](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.421) to clarify that transactions ordinarily incident to licensed transactions do not include direct or indirect financial transactions with entities and subentities on the [CRL](https://www.ecfr.gov/current/title-31/subtitle-B/chapter-V/part-515/subpart-E/section-515.565) if the terms of the applicable general or specific license expressly exclude such direct or indirect financial transactions.