Review this OFAC (United States Department of the Treasury) announcement of their progress in cracking down on US travel and trade with Cuba.
Here are a few most notable of its claims:
1) 275 people about to board U.S. charter flights to Cuba were barred
(generally at the last minute) by agents who decided they really were not
entitled to go.
2) OFAC is openly considering removing or limiting the longstanding $100
importation allowance of Cuban goods for licensed travelers, including rum
and cigars.
3) Re the unprecedented start of administrative prosecutions and hearing
process: for those charged with violations (in which OFAC has relied on its
own regulations which purport to allow it to presume guilt prior to a
hearing, and mandate that virtually all of the hearings will only be held
in
the Washington, D.C. area), it states that a significant majority have
agreed to make settlement payments rather than proceed with their
ostensible
hearing rights.
4) OFAC's announcement further indicates its rather blatant presumption of
guilt by repeatedly referring to the people who have requested hearings as
being "violators," as in its description on the role of its judges:
"Administrative Law Judges - OFAC now has 3 ALJs in place to hear civil
penalty cases and the ALJs have begun issuing orders of hearing to
violators. . . . One hundred eleven violators have been given
acknowledgments of timely hearing requests along with advisories that
orders
instituting proceedings before the ALJs will be forthcoming in short order
absent settlement of the case."
5) OFAC boasts that it has suspended the licenses of two religious and
humanitarian groups, and is investigating whether they exceeded the
parameters of their licenses, and that it has four other groups for
identified for possible suspension.
6) Even more ominously, OFAC boasts of working with the U.S. Federal
Prosecutor's office in South Florida to pursue criminal prosecutions: "3
cases have been referred for criminal investigation by OFAC Enforcement
directly to federal law enforcement agencies . . . OFAC is working with
special agents and Assistant U.S. Attorneys on a number of potential
criminal cases. . . . The U.S. Attorney [for the Southern Dist. of
Florida] voiced the support of his Office. It was agreed that working groups from
participant agencies will meet quarterly, beginning in March 2004, to review
promising criminal cases."
Please forward this information widely, and share your concerns with your
representatives and the media.
Art Heitzer, chair, NLG Cuba Subcommittee, www.nlg.org/cuba
aheitzer@igc.org
FROM THE OFFICE OF PUBLIC AFFAIRS
February 9, 2004
JS-1161
Treasury Designates & Blocks 10 Entities for Cuban Embargo Violations
MIAMI--Today Treasury Secretary John Snow announced that Treasuryâ?Ts Office
of Foreign Assets Control is identifying ten entities, listed below, that it has determined
are owned or controlled by the Government of Cuba or Cuban nationals. These ten
include entities organized and located in
Cuba as well as entities located in Argentina, the Bahamas, Canada, Chile,
the Netherlands, and England. Nine of the ten are travel companies
specializing in Cuba travel, and one is a gift forwarder to Cuba.
All property of these entities that is in the possession of persons subject
to U.S. jurisdiction is blocked and no persons subject to U.S. jurisdiction
may engage in any transactions with these entities unless authorized by OFAC.
OFAC is taking action today in furtherance of President Bushâ?Ts October
2003 initiative to strengthen enforcement of U.S. laws prohibiting
transactions related to travel to Cuba and to hasten the arrival of a new,
free, democratic Cuba. The foreign travel companies identified today provide
easy access to Cuba to those U.S. individuals who choose to break the law.
Many of these entities use the Internet to advertise and sell Cuban tourism
to the U.S. public. U.S. law enforcement officials have intercepted a
number of unauthorized travelers whose tour packages were purchased through one of
these entities.
ENTITIES PROPOSED FOR DESIGNATION
Cimex Companies (6):
1. 2904977 CANADA INC.
Montréal, Québec, Canada
(http://www.caribesol.ca)
2904977 CANADA INC., a.k.a. Caribe Sol, a.k.a. Havanatur Canada Inc., is a
travel agency owned by Cimex, a holding company of the Government of Cuba.
2. CORPORACION CIMEX S.A.
Havana, Cuba (and all other locations worldwide)
(http://www.cimexweb.com)
CORPORACION CIMEX S.A., a.k.a. Cimex, a.k.a. Cimex Cuba, a.k.a. Comercio
Interior, Mercado Exterior, has approximately 107 offices throughout Cuba. A
holding company, CIMEX S.A., is owned by the Government of Cuba and owns
travel service providers. It was organized to promote new products and services in Cuba.
3. HAVANATUR S.A.
Havana, Cuba (and other cities in Cuba)
(http://www.havanatur.cu)
HAVANATUR S.A. is the leading tour operator in Cuba, with offices throughout
Cuba. Its corporate parent is CIMEX.
4. HAVANATUR S.A.
Buenos Aires, Argentina
HAVANATUR S.A. is a travel agency specializing in trips to Cuba. It is
owned by Cimex.
5. HAVANATUR BAHAMAS LTD.
Nassau, Bahamas
HAVANATUR BAHAMAS LTD. is a travel agency specializing in trips to Cuba. It
is controlled by the Government of Cuba.
6. HAVANATUR CHILE S.A.
Santiago, Chile
HAVANATUR CHILE S.A., f.k.a. Guamatur S.A., is a travel operation
specializing in trips to Cuba. It is controlled by Cimex.
Cubanacan Companies (4):
1. LA COMPAÃ'Ã&Mac217;A TIENDAS UNIVERSO S.A. Cuba
(http://www.cuba-shop.net)
LA COMPAÃ'Ã&Mac217;A TIENDAS UNIVERSO S.A, which is owned by the Cubanacan Group,
operates the e-commerce portal CUBA-SHOP.NET.
Through CUBA-SHOP.NET, U.S. persons may purchase a wide range of products,
including but not limited to televisions, refrigerators, ovens, food,
perfume, cosmetics and bicycles for friends and family in Cuba. Prices are
in U.S. dollars.
2. CUBANACAN GROUP
Havana, Cuba
CUBANACAN GROUP, owned by the Government of Cuba, is a tourism and trading
business, hosting approximately 40% of all visitors to Cuba.
3. CUBANACAN INTERNATIONAL B.V.
Zevenhuizen, Netherlands
CUBANACAN INTERNATIONAL B.V. specializes in organizing trips and
accommodations for travel to Cuba.
4. CUBANACAN U.K. LIMITED
London, England, United Kingdom
CUBANACAN U.K. LIMITED is a travel agency specializing in travel to Cuba
and
is a promoter and representative of CUBANACAN GROUP.
OFFICE OF FOREIGN ASSETS CONTROL
STATUS REPORT ON IMPLEMENTATION OF ENHANCED CUBA TRAVEL ENFORCEMENT
Date: February 9, 2004
On October 10, 2003, President Bush directed the Departments of Treasury
and Homeland Security to step-up enforcement of Cuba embargo travel
restrictions by increasing inspections of travelers and shipments to and
from Cuba, and by targeting those who travel to Cuba illegally through
third
countries and by private vessel for illegal business or tourism purposes or
to carry unlicensed currency to Cuba.
The Office of Foreign Assets Control reports the following
actions and progress to date to fully implement and enforce the
Presidentâ?Ts initiative.
Inspection of Cuba Flights
DHS committed Bureau of Customs and Border Patrol to
inspecting up to 100% of direct flights at Miami, JFK and LAX for a 90-day
period. After 90 days, the level of future inspections will be reviewed and
evaluated.
OFACâ?Ts staff in Miami, augmented by staff from Washington, worked
hand-in-hand with Customs inspectors in Miami during the first 90-day period
to provide daily post-October 10 coverage of direct charter flights that
depart several times each day for Cuba.
Since October 10, OFAC has participated with Customs to inspect the weekly
charter flights at LAX and JFK twice at each port and we are in direct
communication with DHS as questions arise.
Inspection Activity to Date:
569 aircraft with passengers destined for Cuba, mostly direct charter
flights, were targeted for outbound inspection. Over 44,000 passengers were
screened as they departed the United States for Cuba and over 50,915
passengers were screened on their return to the United States on charter
flights.
275 travelers were denied travel on charter flights after examination
revealed they did not qualify under any OFAC license category.
1007 aircraft with passengers returning to the United States from Cuba were
targeted for inbound inspections. This number includes returning charter
flights and other flights arriving in the United States from third
countries. Over 50,915 passengers and crew were subjected to extensive
examination.
376 OFAC-related seizures were accomplished, most of which related to the
unlicensed importation of Cuban cigars and alcohol.
Training
Since October 10, OFAC has provided on-site training on Cuba embargo travel
restrictions to over 500 DHS Customs inspectors. We have accomplished this
training on-site in Miami, Los Angeles and JFK, the ports of departure for
direct charter flights, and we are now expanding our training efforts to
reach Customs inspectors stationed at U.S. Customs Preclearance Facilities
in the Caribbean and Canada. This training will assist inspectors in their
efforts to detect illegal U.S. tourist travelers to Cuba. OFAC has already
completed training in Bermuda, Nassau and Aruba. In the next few weeks,
OFAC will provide training to inspectors at 6 Preclearance Facilities in
Canada.
In addition to these training sessions, OFAC provides training to Customs
inspectors on a monthly basis at the Federal Law Enforcement Training Center
in Brunswick, GA.
OFACâ?Ts Miami Office is working with the Coast Guard to provide Cuba
embargo travel training for its personnel.
OFAC fully expects that these training initiatives will result in a
significant number of travel referrals from Customs to OFAC for civil penalties.
Travel Enforcement Investigations
Civil -
264 cases have been opened to date by OFACâ?Ts Enforcement Division for
investigation of alleged post October 10, 2003, travel to Cuba.
Criminal -
3 cases have been referred for criminal investigation by OFAC Enforcement
directly to federal law enforcement agencies, primarily the Bureau of
Immigration and Customs Enforcement. OFAC is working with special agents
and Assistant U.S. Attorneys on a number of potential criminal cases.
On December 4, 2003, OFAC hosted a highly successful meeting in Miami with
the U.S. Attorney for the Southern District of Florida, Commander of the 7th
U.S. Coast Guard District, DHS (ICE and Bureau of Customs and Border
Patrol), and Department of Commerce, to coordinate efforts to implement the
Presidentâ?Ts initiative. The U.S. Attorney voiced the support of his
Office. It was agreed that working groups from participant agencies will
meet quarterly, beginning in March 2004, to review promising criminal cases.
The Commander, USCG 7th District, stated that his organization will (1)
redraft the Security Zone Permit to capture the OFAC and Commerce licensing
category of the applicant, and will (2) step-up their boarding of pleasure
vessels going to and from Cuba. OFAC agreed to provide Cuba travel training
to USCG personnel in South Florida and to implement a feedback program for
Customs and USCG to report the status of Cuba travel cases those agencies
refer to OFAC for ci!
vil penalties.
Penalties
OFAC'Ts Civil Penalties Division plans to expedite action on those
violations occurring after the Presidentâ?Ts Rose Garden directive to
increase enforcement while continuing to issue penalties on currently
ongoing cases.
-- OFAC'Ts Civil Penalties Division currently has a docket of nearly 2,000
actions relating to Cuban embargo violations, thee majority of which will
likely result in monetary penalties paid to OFAC.
Increased Initiation of New Penalty Actions - Since the President's
announcement on October 10th, the Civil Penalties Division has accelerated
the issuance of Prepenalty Notices initiating OFAC'Ts civil penalty cases.
By the end of November, all prepenalty notices in the pipeline were issued.
Between October 10 and November 30, 2003, OFAC issued a total of
approximately 348 new notices opening penalty actions.
Implementation of Expedited Penalty Process - OFACâ?Ts Civil Penalties
Division has implemented an expedited civil penalty process. For all
post-Rose Garden announcement violations detected by DHS and referred to
OFAC, OFACâ?Ts Civil Penalties Division will initiate appropriate civil
penalty action within 60 days of the divisionâls receipt of DHSâ?T
evidence of violation. Given the cumulative effect of the enhanced multi-agency
enforcement strategy, we anticipate that at least initially an increase of
cases by several orders of magnitude will be received in the Civil Penalties
Division.
-- Major Case Squad Set Up for Cuban Commercial Cases â?" OFAC'Ts Civil
Penalties Division has set up a Major Case Squad tarrgeting Cuban
commercial
cases in response to the Presidentâls Rose Garden directive for increased
Cuban embargo enforcement. The Major Case Squad identified cases awaiting
OFAC Civil Penalties Division action against banks, companies and other
entities involved in commerce with Cuba. The Squad has contacted more than
60 violators and informed the majority of them of OFAC'Ts pending penalty
actions against them. Settlements totaling nearly $200,000 have already
been reached in 20 of the Major Cases.
-- OFAC's Civil Penalties Division publishes details of penalty
settlements and assessments on OFACâ?Ts website. This infoormation is
updated each month. Penalties settled by and assessed against Cuban travel
ban violators appear in the aggregate for informational purposes on the
website.
Administrative Law Judges - OFAC now has 3 ALJs in place to hear civil
penalty cases and the ALJs have begun issuing orders of hearing to
violators. To date, OFAC has initiated action in cases by forwarding them
to the 3 ALJs residing at the Justice Department and the Federal Mine Safety
and Health Commission. Twelve cases are on the ALJsâ?T docket as the
balance has settled their cases with OFAC with penalty payments. One
hundred eleven violators have been given acknowledgments of timely hearing
requests along with advisories that orders instituting proceedings before
the ALJs will be forthcoming in short order absent settlement of the case.
Of these 111 ALJ hearing-noticed cases, 63 violators have already sent in
settlement payments with the deadline to pay in the other cases to run in 2
weeks. Additional settlements are expected.
Other OFAC Actions
Licensing Actions "
- OFAC Licensing and Enforcement Divisions have established internal
procedures to quickly suspend and investigate allegations of abuse of
licenses issued to humanitarian and religious organizations.
- Using information derived from charter flight inspections, OFAC has
suspended licenses issued to 2 organizations previously authorized toengage
in travel transactions related to humanitarian or religious activities in
Cuba. OFAC is investigating allegations that the licensees may have engaged
in activities outside the scope of their licenses. Four other
organizational licenses are under review for possible suspension and
investigation.
- OFAC has taken action to limit the number of travel days in Cuba for
licenses issued for humanitarian purposes, such as for the delivery of
donated goods in Cuba.
Regulatory / Policy Changes:
- OFAC is working with the State Department to review the current
authorization which allows licensed travelers to import up to $100 worth of
Cuban origin goods, including cigars and rum, as accompanied baggage. A
revocation of this authorization would result in a significant decrease in
U.S. dollars going directly to the state-owned tobacco and alcohol industry.
Revocation would also serve to reinforce the seriousness of the U.S.
Government's Cuba travel enforcement efforts.
Public Support
Calls are regularly received at the OFAC hotline in Miami at (305) 810-5170
to report embargo violations.