27348 Federal Register / Vol. 63, No. 95 / Monday, May 18, 1998 /Rules and Regulations

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 515

Cuban Assets Control Regulations:

Family Remittances; Travel

Remittances; Carrier Service

Providers; Currency Carried by

Travelers

AGENCY: Office of Foreign Assets

Control, Treasury.

ACTION: Final rule; amendments.

SUMMARY: Pursuant to the President’s

announcement of March 20, 1998, the

Treasury Department is amending the

Cuban Assets Control Regulations to

authorize a person subject to U.S.

jurisdiction to make remittances to a

close relative in Cuba of up to $300 in

any consecutive 3–month period. The

remitter must be aged 18 years or older

and the remittances must be for the

support of the close relative or members

of his or her household. In situations in

which more than one close relative of

the remitter resides in the same

household in Cuba, no more than $300

in any consecutive 3–month period may

be sent by the remitter to that

household. Rules relating to non–Cuban

currency carried by Cubans returning

from the United States to Cuba are

amended to reflect this authorization. In

addition, technical changes are made to

rules relating to provision of

emigration–related remittances and the

licensing of cargo transported to Cuba

by carrier service providers.

EFFECTIVE DATE: May 13, 1998.

FOR FURTHER INFORMATION: Dennis P.

Wood, Chief, Compliance Programs

Division (tel.: 202/622–2490); Steven I.

Pinter, Chief of Licensing (tel.: 202/622–

2480); Charles L. Bishop, OFAC–Miami

Sanctions Coordinator (tel.: 305/530–

7177); or William B. Hoffman, Chief

Counsel (tel.: 202/622–2410); Office of

Foreign Assets Control, Department of

the Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic Availability:

This document is available as an

electronic file on The Federal Bulletin

Board the day of publication in the

Federal Register. By modem, dial 202/

512–1387 and type ‘‘/GO FAC,’’ or call

202/512–1530 for disk or paper copies.

This file is available for downloading

without charge in WordPerfect 5.1,

ASCII, and Adobe AcrobatR readable

(*.PDF) formats. For Internet access, the

address for use with the World Wide

Web (Home Page), Telnet, or FTP

protocol is: fedbbs.access.gpo.gov. The

document is also accessible for

downloading in ASCII format without

charge from Treasury’s Electronic

Library (‘‘TEL’’) in the ‘‘Business, Trade

and Labor Mall’’ of the FedWorld

bulletin board. By modem, dial 703/

321–3339, and select self–expanding file

‘‘T11FR00.EXE’’ in TEL. For Internet

access, use one of the following

protocols: Telnet = fedworld.gov

(192.239.93.3); World Wide Web (Home

Page) = http://www.fedworld.gov; FTP

= ftp.fedworld.gov (192.239.92.205).

Additional information concerning the

programs of the Office of Foreign Assets

Control is available for downloading

from the Office’s Internet Home Page:

http://www.ustreas.gov/treasury/

services/fac/fac.html, or in fax form

through the Office’s 24–hour fax–on–

demand service: call 202/622–0077

using a fax machine, fax modem, or

(within the United States) a touch–tone

telephone.

Background

On March 20, 1998, President Clinton

announced that the United States is

taking a number of steps to expand the

flow of humanitarian assistance to Cuba

and to help strengthen independent

civil society and religious freedom in

that country. These include allowing a

person subject to U.S. jurisdiction to

make remittances of specified amounts

to close relatives in Cuba. Accordingly,

the Office of Foreign Assets Control of

the Department of the Treasury

(‘‘OFAC’’) is amending the Cuban Assets

Control Regulations, 31 CFR part 515

(the ‘‘Regulations’’), pursuant to

authority delegated to the Secretary of

the Treasury by the President, in order

to implement this measure and to make

certain technical changes to the

Regulations.

Section 515.563(a) of the Regulations

is amended to authorize a person

subject to U.S. jurisdiction to make

family remittances to a national of Cuba

resident in Cuba who is a close relative

of the remitter or the remitter’s spouse.

The same remittances are authorized

with respect to Cuban nationals resident

in the authorized trade territory who are

not unblocked nationals pursuant to

§ 515.505(b) of the Regulations. (As

defined in § 515.322, the term

‘‘authorized trade territory’’ means all

countries other than the United States

and countries subject to sanctions

pursuant to 31 CFR chapter V.) The

remitter must be aged 18 years or older,

and the remittances must be for the

support of the close relative (including

any member of his or her household). A

U.S. remitter may make payments of up

to $300 in any consecutive 3–month

period to any one close relative, and, in

situations in which more than one close

relative of the remitter resides in the

same household, no more than $300 in

any consecutive 3–month period may be

sent by the remitter to that household.

Section 515.563(d) of the Regulations

defines a ‘‘close relative’’ as a person’s

spouse, child, grandchild, parent,

grandparent, great grandparent, uncle,

aunt, brother, sister, nephew, niece, first

cousin, mother–in–law, father–in–law,

son–in–law, daughter–in–law, sister–

in–law, brother–in–law, or spouse,

widow or widower of any of the above.

Remittances may be transferred

through remittance forwarders

specifically licensed by OFAC or by

U.S. depository institutions generally

licensed by OFAC pursuant to

§ 515.566(a)(3). In addition, the family

remittance may be carried directly on

the person of the U.S. remitter or

remitter’s spouse who is engaging in

authorized travel to Cuba, provided the

traveler is aged 18 years or older, carries

no more than $300 per trip for this

purpose irrespective of the number of

payees, and makes total remittances of

no more than $300 per close relative

(including all members of that close

relative’s household) in any consecutive

3–month period.

The text of former § 515.563(b), now

§ 515.563(c), is revised to make clear

that the emigration–related remittance

authorized by that paragraph is separate

from and in addition to the travel–

related remittance authorized by

§ 515.564(c). A similar revision is made

to § 515.564(c). In addition,

§ 515.566(a)(2) is amended to indicate

that certain baggage carried by carrier

service providers requires licensing by

the U.S. Department of Commerce.

Finally, § 515.569(d) is modified to

provide that Cuban nationals returning

to Cuba may carry with them currency

they have received as family remittances

pursuant to § 515.563.

Because the Regulations involve a

foreign affairs function, Executive Order

12866 and the provisions of the

Administrative Procedure Act (5 U.S.C.

553)(the ‘‘APA’’) requiring notice of

proposed rulemaking, opportunity for

public participation, and delay in

effective date are inapplicable. Because

no notice of proposed rulemaking is

required for this rule, the Regulatory

Flexibility Act (5 U.S.C. 601–612) does

not apply.

Paperwork Reduction Act

The Regulations are being issued

without prior notice and public

comment procedure pursuant to the

APA. The collections of information

related to the Regulations are contained

in 31 CFR part 501 (the ‘‘Reporting and
Federal Register / Vol. 63, No. 95 / Monday, May 18, 1998 /Rules and Regulations 27349

Procedures Regulations’’). Pursuant to

the Paperwork Reduction Act of 1995

(44 U.S.C. 3507), those collections of

information have been approved by the

Office of Management and Budget under

control number 1505–0164. An agency

may not conduct or sponsor, and a

person is not required to respond to, a

collection of information unless the

collection of information displays a

valid control number.

List of Subjects in 31 CFR Part 515

Administrative practice and

procedure, Air carriers, Banks, banking,

Blocking of assets, Cuba, Currency,

Estates, Exports, Foreign investment in

the United States, Foreign trade,

Imports, Informational materials,

Penalties, Publications, Reporting and

recordkeeping requirements, Securities,

Shipping, Specially designated

nationals, Terrorism, Travel restrictions,

Trusts and trustees, Vessels.

For the reasons set forth in the

preamble, 31 CFR part 515 is amended

as set forth below:

PART 515—CUBAN ASSETS

CONTROL REGULATIONS

1. The authority citation for part 515

is revised to read as follows:

Authority: 18 U.S.C. 2332d; 22 U.S.C.

2370(a), 6001–6010; 31 U.S.C. 321(b); 50

U.S.C. App. 1–44; Pub. L. 101–410, 104 Stat.

890 (28 U.S.C. 2461 note); E.O. 9193, 7 FR

5205, 3 CFR, 1938–1943 Comp., p. 1147; E.O.

9989, 13 FR 4891, 3 CFR, 1943–48 Comp., p.

748; Proc. 3447, 27 FR 1085, 3 CFR 1959–

1963 Comp., p. 157; E.O. 12854, 58 FR 36587,

3 CFR, 1993 Comp., p. 614.

Subpart E—Licenses, Authorizations,

and Statements of Licensing Policy

2. Section 515.563 is revised to read

as follows:

§ 515.563 Family remittances to nationals

of Cuba.

(a) A person subject to the jurisdiction

of the United States may make

remittances to a national of Cuba

resident in Cuba or in the authorized

trade territory who is a close relative of

the remitter or of the remitter’s spouse,

provided the U.S. remitter is 18 years of

age or older and payments are made

from unblocked sources for the support

of the close relative (including any

member of his or her household). In any

consecutive 3–month period, the

maximum amount a remitter may send

to a close relative of the remitter or the

remitter’s spouse pursuant to this

section is the lesser of:

(1) $300 to the close relative in Cuba

or the authorized trade territory; or

(2) $300 to the household of the close

relative in Cuba or the authorized trade

territory, regardless of the number of

close relatives comprising the

household.

Note to paragraph (a). The maximum

amounts set forth in paragraph (a) of this

section do not apply to family remittances to

a Cuban national who has been specifically

licensed as an unblocked national pursuant

to § 515.505(b), as family remittances to

unblocked persons do not require separate

authorization.

(b) A remitter or remitter’s spouse

who is 18 years of age or older and who

is engaged in authorized travel to Cuba

may carry on his or her person no more

than $300 in total family remittances,

regardless of the number of eligible

payees in Cuba, provided the remitter’s

family remittances will not exceed the

maximum amount set forth in paragraph

(a) of this section for any payee within

the past 3 months.

(c) In addition to travel–related

remittances authorized pursuant to

§ 515.564(c), remittances to any close

relative of the remitter or of the

remitter’s spouse who is a national of

Cuba or who is resident in Cuba are

authorized for the purpose of enabling

the payee to emigrate from Cuba to the

United States, in an amount not

exceeding $500, to be made only once

to any payee, provided that the payee is

a resident of and within Cuba at the

time the payment is made.

(d) The term close relative used with

respect to any person means such

person’s spouse, child, grandchild,

parent, grandparent, great grandparent,

uncle, aunt, brother, sister, nephew,

niece, first cousin, mother–in–law,

father–in–law, son–in–law, daughter–

in–law, sister–in–law, brother–in–law,

or spouse, widow or widower of any of

the foregoing.

3. Section 515.564 is amended by

revising the first sentence of paragraph

(c) to read as follows:

§ 515.564 Certain transactions incident to

travel to, from and within the United States

by certain Cuban nationals.

* * * * *

(c) Travel–related remittances by

persons subject to U.S. jurisdiction to

Cuba or a Cuban national, directly or

indirectly, for transactions on behalf of

a Cuban national, are authorized

pursuant to paragraph (a) of this section

only when made for the purpose of

enabling the payee to emigrate from

Cuba to the United States, including for

the purchase of airline tickets and

payment of visa fees or other travel–

related fees. * * *

* * * * *

4. Section 515.566 is amended by

revising the last sentence of paragraph

(a)(2) to read as follows:

§ 515.566 Authorization for transactions

incident to the provision of travel service,

carrier service, and family remittance

forwarding service.

(a)(1) * * *

(2) * * * Carriage to or from Cuba of

any merchandise, cargo or gifts, other

than those permitted to individual

travelers as accompanied baggage, must

also be authorized by licenses issued by

the U.S. Department of Commerce.

* * * * *

5. Section 515.569 is amended by

revising paragraph (d) to read as

follows:

§ 515.569 Currency carried by travelers to

Cuba.

* * * * *

(d) A Cuban national returning

directly from the United States to Cuba

may carry non–Cuban currency only in

the amount of U.S. currency or third–

country currency brought into the

United States by the traveler and

registered with the U.S. Customs

Service upon entry, plus up to $300 in

funds received as family remittances by

the Cuban national during his or her

stay in the United States.

* * * * *

Dated: May 4, 1998.

R. Richard Newcomb,

Director, Office of Foreign Assets Control.

Approved: May 11, 1998.

James E. Johnson,

Assistant Secretary (Enforcement),

Department of the Treasury.

[FR Doc. 98–13120 Filed 5–13–98; 2:31 pm]

BILLING CODE 4810–25–F

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 515

Cuban Assets Control Regulations:

Fully–Hosted or Fully–Sponsored

Travel and Restrictions on Travel

Transactions

AGENCY: Office of Foreign Assets

Control, Treasury.

ACTION: Final rule; amendments.

SUMMARY: In order to ensure effective

enforcement of the prohibitions on

travel–related transactions in Cuba, any

person subject to U.S. jurisdiction

determined to have traveled to Cuba

without the authority of a general or

specific license is subject to a rebuttable

presumption that the traveler has