OFAC FAQ (Current) FAQ # 775 - Cuba-related: Trade/Business

Date issued: Nov. 08 2017

TURBOFAC Commentary (252 words)

Notes:

1) See relevant enforcement action: Civil Enforcement Information - American International Group, Inc. (1st action) (2014).

2) Note that, where IEEPA's Berman Amendment for travel is applicable, the provision of travel insurance is permitted as ordinarily incident to the travel itself. With Cuba, though, travel is not permitted at baseline. See comment to JCPOA Implementation FAQ D-7:

"Can U.S. insurers provide travel insurance to individuals traveling to Iran?

Yes, travel insurance continues to be exempt from regulation by OFAC as ordinarily incident to travel. Please see FAQ 104.
[01-16-2016]"

3) This FAQ highlights the distinction between transactions ordinarily incident to those that are authorized or statutorily exempt, on the one hand, and transactions ordinarily incident to those that are not actually prohibited in the first place, on the other. 515.421, which can include insurance within its scope, only applies in cases where the related transaction is authorized or statutorily exempt, and most transactions involving only non-U.S. parties are simply not subject to the regulations to begin with.

4) Note that the FAQ addresses the question of whether insurance may be provided to “non-U.S. persons providing goods or services that facilitate travel by third-country nationals from a third country to Cuba.” The FAQ does not address insurance provided to non-U.S. persons in connection with their travel to Cuba, where such travel would, if it were subject to U.S. jurisdiction, be within the scope of one or more of the CACR’s general licenses for travel to Cuba.