The US Office of Foreign Asset Control (OFAC) has clarified its position on letters of credit (L/Cs) for trade between the US and Cuba.

The clarification is one of several amendments to the Cuban Assets Control Regulations (CACR) that are relevant to financial institutions.

Clarifications

OFAC has clarified that any bank subject to US jurisdiction is authorised to provide financing for exports or re-exports of items, other than agricultural commodities.

Specifically, OFAC says that this applies to issuing, advising, negotiating, paying, or confirming L/Cs, including those issued by a Cuban financial institution.

US-based banks can also accept collateral for issuing or confirming L/Cs, and processing documentary collections.

Amendments

Amongst other amendments relevant to US-based financial institutions, OFAC has authorised the processing and payment of credit and debit card transactions for third-country nationals travelling to, from, or within Cuba.

The amendments to the CACR are effective immediately.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.