President Donald Trump issued an executive order titled “Imposing Sanctions on Those Responsible for Repression in Cuba and for Threats to United States National Security and Foreign Policy” (the Order) on May 1, 2026. The Order authorizes the Treasury and State Departments to block the property of additional categories of Cuban parties and to impose secondary sanctions on non-Cubans who provide material support to blocked parties.
Although existing Cuba sanctions already bar U.S. persons and their foreign subsidiaries from most Cuba-related activities, the Order exposes non-U.S. persons engaged in such activities to significant new risk. The Order reflects ongoing tension between the U.S. and Cuban governments and comes as Trump has threatened more drastic measures, as seen with sanctions against Venezuela and Iran.
Overview of the Order and Key Provisions
Property Blocking Provisions
The Order authorizes the Treasury and State Departments to block all property and interests in property of foreign persons that meet any of the following designation criteria:
- Operating in (or having operated in) specified sectors of the Cuban economy, including energy; defense and related materiel; metals and mining; financial services; the security sector; and other sectors later identified by Treasury in consultation with State
- Owned/controlled by, or acting for or on behalf of, the Government of Cuba or blocked persons
- Materially assisting, sponsoring, or providing support to the Government of Cuba or blocked persons (including goods or services)
- Leaders or senior officials (including board members) of the Government of Cuba or blocked entities
- Political subdivisions, agencies, or instrumentalities of the Government of Cuba
- Responsible for, complicit in, or engaged in serious human rights abuse in Cuba
- Responsible for, complicit in, or engaged in corruption related to Cuba
- Adult family members of designated persons
The Order defines “Government of Cuba” to include any political subdivision, agency, or instrumentality (including the Central Bank of Cuba) and any person owned or controlled by, or acting for or on behalf of, the Government of Cuba. The Order also imposes standard travel restrictions on blocked parties; the usual prohibition on providing or receiving funds, goods, or services to or from a blocked party; and prohibitions on evading or conspiring to violate the sanctions.
Secondary Sanctions for Foreign Financial Institutions
The Order separately authorizes Treasury, in consultation with State, to impose secondary sanctions on any foreign financial institution that conducts or facilitates a significant transaction for or on behalf of a blocked person. Available measures include:
- Restricting or prohibiting the opening or maintenance of correspondent or payable-through accounts in the United States
- Blocking the foreign financial institution’s property and interests in property that come within U.S. jurisdiction
The Order significantly elevates the risk to non-U.S. financial institutions that currently operate in Cuba or process funds transfers on behalf of Cuban persons.
Practical Considerations
The Office of Foreign Assets Control (OFAC), along with the State Department, will likely designate new Specially Designated Nationals (SDNs) under the Order. That means foreign entities and individuals who deal with the above Cuban government entities and industries could become subject to full property blocking sanctions and transaction bans under U.S. law. To that end, the U.S. government has adjusted the sanctions designation basis for Grupo de Administración Empresarial S.A. (GAESA), a Cuban military-controlled umbrella enterprise with interests in various sectors, and Moa Nickel SA (MNSA) to reflect the new secondary sanctions risk.
Companies should consider taking the following compliance measures to address the Order:
- Monitoring: Monitor for OFAC’s new SDN designations and ensure screening procedures are designed to screen against the most recent SDN List.
- Risk Assessment: Evaluate current contractual counterparties for elevated designation risk, such as foreign financial institutions that engage with instrumentalities of the Government of Cuba.
- Diligence Updates: Designing sanctions diligence procedures to flag connections to Cuba that could elevate SDN designation risk, particularly for non-Cuban parties with significant Cuban dealings.
- Blocking Statutes: Consider how to navigate EU and Canadian blocking statutes that may impede compliance with the Order.
- Contractual Protections: Include appropriate sanctions compliance terms in agreements, with the right to terminate immediately if continued performance becomes prohibited.
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