October 01, 2011

Experts debate whether new OFAC regs will really help small business in Cuba

Posted by Vito Echevarria - No Comments
Filed under: Business

It looks like Washington wants to encourage capitalism in Marxist Cuba — at least at the mom-and-pop level.

Yet 10 months after the U.S. Treasury Department’s Office of Foreign Assets Control relaxed the rules to allow Cuban exiles to help finance small businesses on the island, the experts are still debating the actual impact of these changes.

On Jan. 14, 2011, the Obama administration amended Section 515.570 of the Cuban Assets Control Regulations. That section now provides a general license permitting “persons subject to the jurisdiction of the United States” to send up to $500 every three months (or $2,000 a year) to recipients in Cuba “to support the development of private businesses” in that country.

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