In a fresh tightening of financial restrictions, the United States has mandated that, from September 30, 2026, banks under U.S. jurisdiction must freeze accounts and funds held for Cuban private entrepreneurs. These accounts were previously allowed under an authorization established in 2024.
The Treasury Department's Office of Foreign Assets Control (OFAC) announced on Tuesday changes to the Cuban Assets Control Regulations (CACR), which will be effective this Wednesday, September 30, following their publication in the Federal Register.
The amendment removes the authorization previously found in section 515.584(h)(2). This provision had allowed U.S. banks to open and maintain accounts exclusively for Cuban citizens deemed independent private sector entrepreneurs to conduct certain authorized or exempt transactions.
OFAC was clear about the impact on existing accounts: unless another applicable authorization exists, U.S. banks must "immediately block these funds and accounts" and will require a specific license from the agency to unblock them.
In an alert issued on September 29, OFAC emphasized that institutions maintaining accounts under the now-revoked authorization must block all those funds and accounts and report them to OFAC unless a separate authorization is provided.
Subsequent access to the blocked funds will also require a specific license.
Impact on Private Sector Entrepreneurs
The authorization that is being revoked was expanded in May 2024. Until now, a Cuban private entrepreneur could open a U.S. bank account and access it remotely from Cuba, the United States, or a third country, including making transfers to Cuba, as long as the underlying transaction was authorized or exempt from restrictions.
The new regulation doesn't entirely eliminate the possibility for a Cuban resident on the island to maintain a U.S. bank account.
OFAC retains a more limited authorization in section 515.584(h), which allows accounts to be opened and maintained solely for Cubans located in Cuba to receive payments in the U.S. for authorized or exempt transactions and subsequently remit those funds to the island.
For instance, a Cuban citizen may hold an account intended to receive payments from an activity permitted under the regulations.
Broader Financial Restrictions
What is being eliminated is the additional framework that allowed independent private sector entrepreneurs to use these accounts more broadly for certain authorized business operations.
OFAC defines this category of private entrepreneur according to section 515.340 of the Cuban regulations, including specific individuals and small independent businesses that meet the criteria established by U.S. regulations. The new rule does not remove other applicable authorizations for specific operations.
This modification is part of a broader package of financial restrictions announced by Washington. As of September 30, U.S. banks will also no longer be able to process so-called U-Turn transactions (financial transit operations) related to Cuba.
These operations allowed a U.S. financial institution to process transfers in which Cuba or a Cuban citizen had an interest when the money originated and ended outside the United States, and neither the sender nor the beneficiary was subject to U.S. jurisdiction.
Under the new rule, banks are authorized to reject these transfers instead of processing them.
OFAC also expanded financial restrictions related to the Cuba Restricted List.
From this Wednesday, individuals subject to U.S. jurisdiction will be prohibited from participating not only in certain direct transactions with entities on that list but also in indirect financial transactions where they act as intermediaries.
These measures are part of implementing the National Security Presidential Memorandum 5, reissued and modified by the Donald Trump administration on June 30, 2025, and complement the new Cuba Sanctions Regulations related to Executive Order 14404, signed on May 1, 2026.
Washington's move comes just weeks after the Cuban government relaxed its own foreign currency account regulations. On September 10, the Central Bank of Cuba published Resolution 102/2026, which removed the requirement for prior BCC authorization to open foreign currency accounts.
The Cuban regulation allows non-state economic actors—among them, small and medium-sized enterprises, cooperatives, and self-employed workers—to receive certain foreign currency income and use those accounts for operations like foreign payments, transfers, currency exchange, and, depending on banking conditions, cash withdrawals.
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Frequently Asked Questions about U.S. Banking Restrictions on Cuba
What is the new U.S. regulation regarding Cuban entrepreneurs' bank accounts?
The new regulation mandates that U.S. banks must block accounts and funds held for Cuban private entrepreneurs, eliminating the authorization that allowed these accounts for specific transactions.
Can Cuban citizens still maintain U.S. bank accounts?
Yes, Cuban citizens can still maintain U.S. bank accounts under a limited authorization for receiving payments from authorized transactions.
What are U-Turn transactions, and how are they affected?
U-Turn transactions are financial transfers involving Cuba or Cuban citizens that originate and end outside the U.S. The new rule allows banks to reject these transactions.