US Treasury blocks business by 10 Cuban companies, cracks down on travel to Cuba

Tuesday, February 10, 2004

MIAMI, USA (AFP): US Treasury Secretary John Snow said Monday the United States is cutting off the business of 10 Cuban-owned companies working with Americans in an effort to keep funds from flowing to the Cuban government.

"We're cracking down. We mean business," Snow said. "We're cutting off American dollars headed to (Cuban President) Fidel Castro, period."

Nine of the companies are travel agencies and one is a gift package forwarding service, Snow said. The government- and civilian-owned businesses are located in Cuba, Argentina, the Bahamas, Canada, Chile, the Netherlands and Britain.

The Treasury Department blocked property from these businesses that was in the hands of people subject to US jurisdiction, he said.

It also forbade people within US authority from engaging in transactions with the Cuban companies without Treasury permission, he added.

"These companies have been providing easy access to Cuba to those US individuals who chose to break the law," he said. "Today's action will put a stop to that, and a stop to another illegal pathway for US dollars to Castro's wallet."

Unless given a special exemption, US citizens are forbidden from spending money in Cuba, creating a de facto travel ban that if broken can cost an individual a fine of up to 55,000 dollars.

The United States broke off diplomatic ties with the communist island decades ago and instituted a full economic embargo in 1961.

The Treasury Department has decided to crack down on illegal transactions with Cuba.

Since October 10, the Treasury's Office of Foreign Assets Control (OFAC) has opened 264 civil cases and three criminal investigations against Americans suspected of traveling to Cuba, Snow said.

More than 500 US Customs inspectors have been trained to specifically catch Americans who violate the travel ban, he said.

"We expect that this will result in an increase in OFAC civil penalties imposed," he said.

OFAC has suspended licenses it issued to two organizations that had been authorized to go to Cuba for humanitarian or religious activities.

"OFAC is now investigating allegations that the licensees may have engaged in activities outside the scope of their licenses," Snow said.

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