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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...
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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...