Cuban Assets Control Regulations: Family Remittances; Travel Remittances; Carrier Service Providers; Currency Carried by Travelers

SUMMARY: Pursuant to the President's announcement of March 20, 1998,

the Treasury Department is amending the Cuban Assets Control

Regulations to authorize a person subject to U.S. jurisdiction to make

remittances to a close relative in Cuba of up to $300 in any

consecutive 3-month period. The remitter must be aged 18 years or older

and the remittances must be for the support of the close relative or

members of his or her household. In situations in which more than one

close relative of the remitter resides in the same household in Cuba,

no more than $300 in any consecutive 3-month period may be sent by the

remitter to that household. Rules relating to non-Cuban currency

carried by Cubans returning from the United States to Cuba are amended

to reflect this authorization. In addition, technical changes are made

to rules relating to provision of emigration-related remittances and

the licensing of cargo transported to Cuba by carrier service

providers.

EFFECTIVE DATE: May 13, 1998.

FOR FURTHER INFORMATION: Dennis P. Wood, Chief, Compliance Programs

Division (tel.: 202/622-2490); Steven I. Pinter, Chief of Licensing

(tel.: 202/622-2480); Charles L. Bishop, OFAC-Miami Sanctions

Coordinator (tel.: 305/530-7177); or William B. Hoffman, Chief Counsel

(tel.: 202/622-2410); Office of Foreign Assets Control, Department of

the Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic Availability:

This document is available as an electronic file on The Federal

Bulletin Board the day of publication in the Federal Register. By

modem, dial 202/512-1387 and type ``/GO FAC,'' or call 202/512-1530 for

disk or paper copies. This file is available for downloading without

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readable (*.PDF) formats. For Internet access, the address for use with

the World Wide Web (Home Page), Telnet, or FTP protocol is:

fedbbs.access.gpo.gov. The document is also accessible for downloading

in ASCII format without charge from Treasury's Electronic Library

(``TEL'') in the ``Business, Trade and Labor Mall'' of the FedWorld

bulletin board. By modem, dial 703/321-3339, and select self-expanding

file ``T11FR00.EXE'' in TEL. For Internet access, use one of the

following protocols: Telnet = fedworld.gov (192.239.93.3); World Wide

Web (Home Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov

(192.239.92.205). Additional information concerning the programs of the

Office of Foreign Assets Control is available for downloading from the

Office's Internet Home Page: http://www.ustreas.gov/treasury/services/

fac/fac.html, or in fax form through the Office's 24-hour fax-on-demand

service: call 202/622-0077 using a fax machine, fax modem, or (within

the United States) a touch-tone telephone.

Background

On March 20, 1998, President Clinton announced that the United

States is taking a number of steps to expand the flow of humanitarian

assistance to Cuba and to help strengthen independent civil society and

religious freedom in that country. These include allowing a person

subject to U.S. jurisdiction to make remittances of specified amounts

to close relatives in Cuba. Accordingly, the Office of Foreign Assets

Control of the Department of the Treasury (``OFAC'') is amending the

Cuban Assets Control Regulations, 31 CFR part 515 (the

``Regulations''), pursuant to authority delegated to the Secretary of

the Treasury by the President, in order to implement this measure and

to make certain technical changes to the Regulations.

Section 515.563(a) of the Regulations is amended to authorize a

person subject to U.S. jurisdiction to make family remittances to a

national of Cuba resident in Cuba who is a close relative of the

remitter or the remitter's spouse. The same remittances are authorized

with respect to Cuban nationals resident in the authorized trade

territory who are not unblocked nationals pursuant to Sec. 515.505(b)

of the Regulations. (As defined in Sec. 515.322, the term ``authorized

trade territory'' means all countries other than the United States and

countries subject to sanctions pursuant to 31 CFR chapter V.) The

remitter must be aged 18 years or older, and the remittances must be

for the support of the close relative (including any member of his or

her household). A U.S. remitter may make payments of up to $300 in any

consecutive 3-month period to any one close relative, and, in

situations in which more than one close relative of the remitter

resides in the same household, no more than $300 in any consecutive 3-

month period may be sent by the remitter to that household. Section

515.563(d) of the Regulations defines a ``close relative'' as a

person's spouse, child, grandchild, parent, grandparent, great

grandparent, uncle, aunt, brother, sister, nephew, niece, first cousin,

mother-in-law, father-in-law, son-in-law, daughter-in-law, sister-in-

law, brother-in-law, or spouse, widow or widower of any of the above.

Remittances may be transferred through remittance forwarders

specifically licensed by OFAC or by U.S. depository institutions

generally licensed by OFAC pursuant to Sec. 515.566(a)(3). In addition,

the family remittance may be carried directly on the person of the U.S.

remitter or remitter's spouse who is engaging in authorized travel to

Cuba, provided the traveler is aged 18 years or older, carries no more

than $300 per trip for this purpose irrespective of the number of

payees, and makes total remittances of no more than $300 per close

relative (including all members of that close relative's household) in

any consecutive 3-month period.

The text of former Sec. 515.563(b), now Sec. 515.563(c), is revised

to make clear that the emigration-related remittance authorized by that

paragraph is separate from and in addition to the travel-related

remittance authorized by Sec. 515.564(c). A similar revision is made to

Sec. 515.564(c). In addition, Sec. 515.566(a)(2) is amended to indicate

that certain baggage carried by carrier service providers requires

licensing by the U.S. Department of Commerce. Finally, Sec. 515.569(d)

is modified to provide that Cuban nationals returning to Cuba may carry

with them currency they have received as family remittances pursuant to

Sec. 515.563.

Because the Regulations involve a foreign affairs function,

Executive Order 12866 and the provisions of the Administrative

Procedure Act (5 U.S.C. 553)(the ``APA'') requiring notice of proposed

rulemaking, opportunity for public participation, and delay in

effective date are inapplicable. Because no notice of proposed

rulemaking is required for this rule, the Regulatory Flexibility Act (5

U.S.C. 601-612) does not apply.

Paperwork Reduction Act

The Regulations are being issued without prior notice and public

comment procedure pursuant to the APA. The collections of information

related to the Regulations are contained in 31 CFR part 501 (the

``Reporting and

[[Page 27349]]

Procedures Regulations''). Pursuant to the Paperwork Reduction Act of

1995 (44 U.S.C. 3507), those collections of information have been

approved by the Office of Management and Budget under control number

1505-0164. An agency may not conduct or sponsor, and a person is not

required to respond to, a collection of information unless the

collection of information displays a valid control number.

List of Subjects in 31 CFR Part 515

Administrative practice and procedure, Air carriers, Banks,

banking, Blocking of assets, Cuba, Currency, Estates, Exports, Foreign

investment in the United States, Foreign trade, Imports, Informational

materials, Penalties, Publications, Reporting and recordkeeping

requirements, Securities, Shipping, Specially designated nationals,

Terrorism, Travel restrictions, Trusts and trustees, Vessels.

For the reasons set forth in the preamble, 31 CFR part 515 is

amended as set forth below:

PART 515--CUBAN ASSETS CONTROL REGULATIONS

1. The authority citation for part 515 is revised to read as

follows:

Authority: 18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010; 31

U.S.C. 321(b); 50 U.S.C. App. 1-44; Pub. L. 101-410, 104 Stat. 890

(28 U.S.C. 2461 note); E.O. 9193, 7 FR 5205, 3 CFR, 1938-1943 Comp.,

p. 1147; E.O. 9989, 13 FR 4891, 3 CFR, 1943-48 Comp., p. 748; Proc.

3447, 27 FR 1085, 3 CFR 1959-1963 Comp., p. 157; E.O. 12854, 58 FR

36587, 3 CFR, 1993 Comp., p. 614.

Subpart E--Licenses, Authorizations, and Statements of Licensing

Policy

2. Section 515.563 is revised to read as follows:

Sec. 515.563 Family remittances to nationals of Cuba.

(a) A person subject to the jurisdiction of the United States may

make remittances to a national of Cuba resident in Cuba or in the

authorized trade territory who is a close relative of the remitter or

of the remitter's spouse, provided the U.S. remitter is 18 years of age

or older and payments are made from unblocked sources for the support

of the close relative (including any member of his or her household).

In any consecutive 3-month period, the maximum amount a remitter may

send to a close relative of the remitter or the remitter's spouse

pursuant to this section is the lesser of:

(1) $300 to the close relative in Cuba or the authorized trade

territory; or

(2) $300 to the household of the close relative in Cuba or the

authorized trade territory, regardless of the number of close relatives

comprising the household.

Note to paragraph (a). The maximum amounts set forth in

paragraph (a) of this section do not apply to family remittances to

a Cuban national who has been specifically licensed as an unblocked

national pursuant to Sec. 515.505(b), as family remittances to

unblocked persons do not require separate authorization.

(b) A remitter or remitter's spouse who is 18 years of age or older

and who is engaged in authorized travel to Cuba may carry on his or her

person no more than $300 in total family remittances, regardless of the

number of eligible payees in Cuba, provided the remitter's family

remittances will not exceed the maximum amount set forth in paragraph

(a) of this section for any payee within the past 3 months.

(c) In addition to travel-related remittances authorized pursuant

to Sec. 515.564(c), remittances to any close relative of the remitter

or of the remitter's spouse who is a national of Cuba or who is

resident in Cuba are authorized for the purpose of enabling the payee

to emigrate from Cuba to the United States, in an amount not exceeding

$500, to be made only once to any payee, provided that the payee is a

resident of and within Cuba at the time the payment is made.

(d) The term close relative used with respect to any person means

such person's spouse, child, grandchild, parent, grandparent, great

grandparent, uncle, aunt, brother, sister, nephew, niece, first cousin,

mother-in-law, father-in-law, son-in-law, daughter-in-law, sister-in-

law, brother-in-law, or spouse, widow or widower of any of the

foregoing.

3. Section 515.564 is amended by revising the first sentence of

paragraph (c) to read as follows:

Sec. 515.564 Certain transactions incident to travel to, from and

within the United States by certain Cuban nationals.

* * * * *

(c) Travel-related remittances by persons subject to U.S.

jurisdiction to Cuba or a Cuban national, directly or indirectly, for

transactions on behalf of a Cuban national, are authorized pursuant to

paragraph (a) of this section only when made for the purpose of

enabling the payee to emigrate from Cuba to the United States,

including for the purchase of airline tickets and payment of visa fees

or other travel-related fees. * * *

* * * * *

4. Section 515.566 is amended by revising the last sentence of

paragraph (a)(2) to read as follows:

Sec. 515.566 Authorization for transactions incident to the provision

of travel service, carrier service, and family remittance forwarding

service.

(a)(1) * * *

(2) * * * Carriage to or from Cuba of any merchandise, cargo or

gifts, other than those permitted to individual travelers as

accompanied baggage, must also be authorized by licenses issued by the

U.S. Department of Commerce.

* * * * *

5. Section 515.569 is amended by revising paragraph (d) to read as

follows:

Sec. 515.569 Currency carried by travelers to Cuba.

* * * * *

(d) A Cuban national returning directly from the United States to

Cuba may carry non-Cuban currency only in the amount of U.S. currency

or third-country currency brought into the United States by the

traveler and registered with the U.S. Customs Service upon entry, plus

up to $300 in funds received as family remittances by the Cuban

national during his or her stay in the United States.

* * * * *

Dated: May 4, 1998.

R. Richard Newcomb,

Director, Office of Foreign Assets Control.

Approved: May 11, 1998.

James E. Johnson,

Assistant Secretary (Enforcement), Department of the Treasury.

[FR Doc. 98-13120 Filed 5-13-98; 2:31 pm]

BILLING CODE 4810-25-F