OFAC Settles With Company That Organized Illegal Tours Through Cuba

OFAC said Cubasphere, which was acting on behalf of the unnamed individual, completed “unauthorized Cuba travel-related transactions” for 104 people on four separate trips in 2013 and 2014. Both the individual and Cubasphere acted as “full-service tour operators,” handled “itinerary planning” and “procured Cuban visas and cover letters for travelers from U.S. religious organizations,” in exchange for payments, OFAC said. But the “itineraries from the U.S. religious organizations did not match the itineraries that the Individual and Cubasphere offered their customers,” the notice said, and the “actual itineraries for the Cuba trips focused primarily on sightseeing and tourism activities rather than humanitarian or religious activities.” Despite being contacted by OFAC about the violations, Cubasphere and the individual continued the trips for “more than a year.”

Both the individual and Cubasphere urged clients to hide their travels to Cuba and “routinely suggested in writing that the customers should minimize their interactions with U.S. government officials” when they returned to the U.S., the notice said. Clients were also told to make sure they retained no receipts or schedules from the trip and asked to “give false statements” if they were asked about the trip.

The violations were not self-disclosed, OFAC said. OFAC said aggravating factors included the fact that the individual willfully violated sanctions and caused “significant harm” to the U.S. sanctions program. OFAC also said Cubasphere did not have an adequate compliance program and did not take “any remedial actions.” OFAC said mitigating factors included both the individual’s and company’s lack of “sanctions history” with OFAC, the fact that they are a “relatively small company with few employees,” and their sufficient cooperation with OFAC.