The United States Department of the Treasury's Office of Foreign Assets Control (OFAC) issued an official notice on Tuesday, announcing a new package of sanctions and restrictions against Cuba that will be enforced starting Wednesday, September 30, 2026.
This initiative involves amending the long-standing Cuban Assets Control Regulations (CACR), which have been in place since 1963, and issuing new Cuba Sanctions Regulations (CSR). These actions implement Executive Order 14404, signed by President Donald Trump on May 1, 2026, under the title "Imposing Sanctions on Those Responsible for Repression in Cuba and Threats to U.S. National Security and Foreign Policy."
Termination of "U-Turn" Bank Transactions
As of Wednesday, banks under U.S. jurisdiction are prohibited from processing "U-Turn" transactions. These are operations where Cuba or a Cuban national has an interest, originating and concluding outside the United States. Banks are now authorized solely to reject such transactions.
Additionally, banks are barred from opening or maintaining accounts for independent Cuban entrepreneurs. Existing funds in these accounts must be frozen and reported to OFAC immediately, with any access requiring a specific license.
Expanded Prohibition with Cuba Restricted List
A significant measure extends the financial transaction ban with entities on the Cuba Restricted List (CRL) to now include indirect operations, not just direct ones. An indirect transaction occurs when someone intermediates in a fund transfer with an origin or final destination linked to an entity on this list, composed of entities tied to the Cuban regime's military, intelligence, and security services.
The alert also warns that foreign financial institutions facilitating significant transactions with blocked persons under E.O. 14404 may also face sanctions, thereby extending pressure beyond the U.S. financial system.
Travel Restrictions: Business Meetings and Educational Tourism
The new regulations revoke the general license that allowed individuals under U.S. jurisdiction to attend or organize professional meetings or conferences in Cuba. Those already in the country under this authorization have a 30-day period, until October 30, 2026, to conclude their activities.
Educational travel is also restricted: it must be conducted under the auspices of a U.S.-jurisdiction organization, with nearly all travelers required to be accompanied by a representative of the sponsoring organization. The previously authorized "people-to-people group educational travel" under the CACR is now eliminated.
Individuals who completed at least one travel transaction—such as purchasing a flight—before September 30 can proceed with that specific trip.
Sanctions Framework and Humanitarian Exemptions
The new CSR establishes an additional framework capable of blocking assets of foreign individuals operating in strategic Cuban sectors like energy, defense, mining, financial services, and security. This escalation is part of a maximum pressure policy that began on January 29, 2026, when Trump declared a national emergency over threats from the Cuban regime, including successive rounds of sanctions against the military apparatus and nickel sector.
However, humanitarian authorizations remain intact: General License 1 continues to permit family remittances and the delivery of food, medicine, and medical devices to Cuba, activities explicitly excluded from the new prohibitions.
The regulations are signed by Bradley T. Smith, director of OFAC, and formally take effect on Wednesday, September 30, 2026.
Understanding the New U.S. Sanctions on Cuba
What are "U-Turn" transactions and why are they now prohibited?
"U-Turn" transactions are financial operations where Cuba or a Cuban national is involved, with the transaction originating and ending outside the U.S. These are now prohibited to increase financial pressure on the Cuban regime.
How will the new travel restrictions affect educational visits to Cuba?
Educational visits are now more restricted, requiring oversight by a U.S.-jurisdiction organization and a representative to accompany travelers. The "people-to-people" educational travel category has been eliminated.
Are there any exemptions to the new sanctions for humanitarian reasons?
Yes, humanitarian activities such as family remittances and the delivery of essential goods like food and medicine remain permitted under General License 1.