1254. On May 7, 2026, the Department of State designated the Cuban entity Grupo de Administración Empresarial S.A. (GAESA) pursuant to E.O. 14404. Are foreign persons, including foreign financial institutions (FFIs), subject to sanctions risk for transacting with GAESA?
Generally, yes, but the U.S. government does not intend to target foreign persons, including FFIs, pursuant to E.O. 14404 for engaging in transactions ordinarily incident and necessary to the wind down of transactions involving GAESA, or any entity in which GAESA owns, directly or indirectly, a 50 percent or greater interest, through June 5, 2026. However, non-U.S. persons, including FFIs, should proceed with caution in any dealings with a party sanctioned under this authority. Actions to return assets to a sanctioned party or transfer them to another jurisdiction for potential use by the target could expose non-U.S. persons to significant sanctions risk.
Foreign persons unable to wind down transactions involving GAESA, or any entity in which GAESA owns, directly or indirectly, a 50 percent or greater interest, before June 5, 2026, are encouraged to contact the OFAC Compliance Hotline.
Persons subject to U.S. jurisdiction, including U.S. persons and entities owned or controlled by U.S. persons, should additionally note that this limited non-targeting posture does not authorize any transaction prohibited by the Cuban Assets Control Regulations (CACR), 31 CFR part 515, or any other OFAC sanctions authority. Persons subject to U.S. jurisdiction have long been prohibited from transacting with GAESA, a Cuban military-controlled entity, absent OFAC authorization. GAESA has been identified on the List of Specially Designated Nationals and Blocked Persons (SDN List) and the State Department-administered Cuba Restricted List since December 21, 2020. Accordingly, persons subject to U.S. jurisdiction continue to be prohibited from engaging in transactions involving GAESA, including in connection with a foreign person's wind down of activities with GAESA, unless separately authorized by OFAC.
Released on May 07, 2026
1) See associated designation notice at U.S. Sanctions Target Cuba’s Military Regime, Elites (Press Statement). This FAQ provides meaningful guidance concerning OFAC’s non-intent to consider “wind down” activities sanctionable even where such activities would not qualify for Cuba General License 1 if engaged in by a U.S. person. With this FAQ, OFAC appears to have coined a phrase with “non-targeting posture” (similar to “non-enforcement posture” in the primary sanctions context). Query whether requests to OFAC for secondary sanctions comfort might more easily be addressed as “non-targeting postures” rather than guidance confirming that a given transaction does or does not qualify as a “significant transaction”. In the latter case, OFAC makes a legal determination that is arguably less meaningful than one-off “non-targeting postures”.