On May 29, 2015, the US Government announced Cuba’s removal from the list of State Sponsors of Terrorism (the “SST List”), five months after President Obama instructed Secretary of State John Kerry to reevaluate Cuba’s designation as a State Sponsor of Terrorism.  We reported on the US Government’s process of reevaluating Cuba’s inclusion on the SST List in our blog post of April 16, 2015.  A 45-day period for the US Congress to review the President’s decision to remove Cuba from the SST List began on April 14, 2015. With that congressional review period now expired, the Secretary of State has made the final decision to remove Cuba from the SST List. 

This development is historic, given that Cuba had been on the SST List since 1982.  The SST List now only includes three countries:  Iran, Syria, and Sudan.  While Cuba’s removal from the SST List represents a further step towards normalizing US-Cuba relations, it does not affect most US trade and financial sanctions targeting Cuba.  In other words, the US embargo of Cuba remains in effect despite Cuba’s removal from the SST List.  Cuba’s removal from the SST List may, however, provide for the following potential changes, subject to regulatory amendments:  (i) eligibility for authorized exports to Cuba of a broader range of dual-use goods, software, and technology subject to US jurisdiction under the Export Administration Regulations; (ii) eligibility for certain US federal assistance to Cuba; and (iii) restrictions on the ability of US citizens to pursue monetary damages against Cuba in US courts under the Anti-Terrorism and Effective Death Penalty Act.

Author

Ms. Kim focuses on outbound trade compliance issues that arise under US economic sanctions, export control laws, investment restrictions, anti-boycott regulations, anti-money laundering laws and the Foreign Corrupt Practices Act. She represents and advises US and non-US companies in criminal and regulatory proceedings, internal investigations, and compliance audits relating to these areas of law. She also advises on the extraterritorial application of these laws in cross-border transactions, including mergers and acquisitions, joint venture arrangements, and other international commercial activities. Her practice includes the development and implementation of workable, risk-based internal compliance programs and procedures for companies in a wide range of industries.

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