United StatesOFAC Cuban Assets Control Regulations: software and services provided to Cuba
31 C.F.R. part 515 (515.201, 515.578)
In force since .
A destination sanctions rule binding private bodies.
As of .
What it requires
- Do not provide software, technology or services to a person in Cuba, or in which Cuba or a Cuban national has an interest, unless the Cuban Assets Control Regulations authorize it, for example the internet-based communications services in 31 C.F.R. 515.578(a)(1) (31 C.F.R. 515.201, 515.578).
- Do not export software or any other item to Cuba under the 515.578 authorization, which excludes the exportation of items, and obtain a Commerce license or use a License Exception for any item subject to the EAR (31 C.F.R. 515.578(b)(2); 15 C.F.R. 746.2).
- Do not provide the 515.578 services with knowledge or reason to know that they are intended for a prohibited official of the Government of Cuba or a prohibited member of the Cuban Communist Party, except as 515.578(a)(4) permits (31 C.F.R. 515.578(b)(1)).
These lines are LexLint's reading of the law's text, as of .
If you get it wrong
Criminal exposureYes
Private right of actionNo
Criminal exposure note
A willful violation of the Trading with the Enemy Act or a license, rule or regulation under it is punishable by a fine of up to $1,000,000 and, for an individual, imprisonment of up to 20 years, or both (50 U.S.C. 4315(a)).
Penalty structure
The statute sets a maximum of $50,000 per violation; the amount coded is the inflation-adjusted maximum in OFAC's enforcement guidelines. The civil penalty provision does not require willfulness, which the criminal provision does.
- Rule
- Per violation only
- As of
- Currency
- USD
- Per violation unit
- Violation
- Per violation amount
- 111,308
Who enforces it
Enforcement body
Office of Foreign Assets Control, U.S. Department of the Treasury (civil penalties under 50 U.S.C. 4315(b)); willful violations are criminal offenses under 50 U.S.C. 4315(a).
What it reaches
Obligation class
Prohibition, Licensing
Applicability criteria
- As of
- Combinator
- Any of
- Criteria
- The software, hosted service or other transaction is provided to a person in Cuba, to the Government of Cuba or a Cuban national, or involves property in which any of them has an interest.
What this law does
The Cuban Assets Control Regulations prohibit dealings in any property in which Cuba or a Cuban national has had an interest since , unless the Treasury authorizes them.
Section 515.578 authorizes the export or reexport to Cuba of internet-based services such as instant messaging, chat and email, social networking, web browsing, social media platforms, collaboration platforms and video conferencing, but it does not authorize the exportation of any items to Cuba, and the note to that paragraph refers to exporting items, including software, to Cuba, so software that is subject to the EAR also needs a Commerce license or exception (the EAR requires a license for all items subject to it going to Cuba, with narrow exceptions).
When LexLint raises it
When your app profile says your app serves a sanctioned destination.