1258. I am a non-U.S. person, what is my exposure to sanctions risk for transacting with entities owned by Grupo de Administración Empresarial S.A. (GAESA), the Cuban Ministry of the Interior (MININT), or the Cuban Ministry of the Revolutionary Armed Forces (MINFAR), including their subsidiaries listed on the Cuba Restricted List (CRL)?
As of June 4, 2026, GAESA, MININT, and MINFAR are all blocked pursuant to Executive Order (E.O.) 14404. These three entities are also blocked pursuant to the Cuban Assets Control Regulations (CACR), and MININT is also blocked pursuant to the Global Magnitsky sanctions program under E.O. 13818, as of January 2021. Non-U.S. persons, including foreign financial institutions, are exposed to sanctions risk for engaging in transactions with persons designated under E.O. 14404. Sanctions risk also extends to transactions with any entity in which GAESA, MININT, or MINFAR own, directly or indirectly, a 50 percent or greater interest. Many of the entities listed on the CRL are 50 percent or more owned by one of these three entities and therefore present the same sanctions risk. In addition, any non-blocked CRL entity may become the subject of future sanctions actions. Consequently, persons transacting with any entity on the CRL may run the risk of themselves being sanctioned by the U.S. government.
Non-U.S. persons should consider conducting enhanced due diligence to inform a risk-based approach to transactions with GAESA, MININT, MINFAR, or any entity in which they own, directly or indirectly, a 50 percent or greater interest. As part of such due diligence, non-U.S. persons are encouraged to consult all available sources to inform their independent assessment regarding the network of entities under GAESA, MININT, and MINFAR, including trusted sources provided by the U.S. government, such as the CRL.
Released on Jun 04, 2026
1) Compare FAQ # 1254. This FAQ clarifies the relationship between the secondary sanctions/derivative designation provisions of EO 14404. GAESA, a large government-owned entity with ownership of many other entities in Cuba, was blocked pursuant to EO 14004 on May 7, 2026. OFAC now clarifies that “[s]anctions risk also extends to transactions with any entity in which GAESA, MININT, or MINFAR own, directly or indirectly, a 50 percent or greater interest,” and that “[n]on-U.S. persons should consider conducting enhanced due diligence to inform a risk-based approach to transactions with GAESA, MININT, MINFAR, or any entity in which they own, directly or indirectly, a 50 percent or greater interest.” Consistent with U.S. Sanctions Target Cuba’s Military Regime, Elites (Press Statement), OFAC’s emphasis on the question of whether a given entity is blocked pursuant to the 50 Percent Rule for secondary sanctions risk purposes is further evidence that OFAC does not intend on using the “material support” provision vis-à-vis the Government of Cuba as a bona fide “secondary sanctions” provision, otherwise the question of whether “GAESA, MININT, or MINFAR own, directly or indirectly, a 50 percent or greater interest” would not be entirely relevant. Instead, the question would be whether such entity is “Government of Cuba, any political subdivision, agency, or instrumentality thereof, including the Central Bank of Cuba, and any person owned, controlled, or acting for or on behalf of, the Government of Cuba” (a category far broader than those blocked pursuant to the 50 Percent Rule).