U.S. Broadens Cuba Sanctions: Secondary Sanctions Now in Play
The Biden administration announced new Cuba sanctions—including authority for secondary sanctions—on May 12, 2026.
Why it matters: The expansion increases potential liability and enforcement risks for non-U.S. companies linked to Cuba. In-house counsel and compliance officers should update policies accordingly, as OFAC enforcement may reach beyond U.S. borders.
- Announced May 12, 2026, the new sanctions grant OFAC power to impose secondary sanctions.
- Secondary sanctions target non-U.S. entities that conduct certain transactions with Cuba.
- OFAC (U.S. Treasury) is responsible for implementation and enforcement of the new measures.
- Treasury Secretary Janet Yellen says the action aims to hold enablers of the Cuban regime accountable.
On May 12, 2026, the Biden administration introduced authority for secondary sanctions targeting non-U.S. parties with specified dealings in Cuba. The move empowers the Treasury Department’s Office of Foreign Assets Control (OFAC) to penalize foreign companies and banks engaging with Cuban targets covered under the new rules.
- Secondary sanctions expand risk beyond direct U.S. nexus. Any company or financial institution worldwide may be penalized if found to materially support prohibited Cuban actors or activities.
- OFAC’s new enforcement reach means increased due diligence and sanctions screening requirements for global organizations, especially those with connections in Latin America.
- Janet Yellen, U.S. Treasury Secretary, stated, “These new measures are designed to hold accountable those who continue to support the Cuban regime through financial transactions.”
- Some compliance experts expect heightened attention to trade finance, payments, and supply chain links involving Cuba, given escalated enforcement provisions.
Legal, risk, and compliance teams advising international clients should quickly audit their Cuba-related exposure. Emerging FAQs for multinational companies include whether certain humanitarian or exempt transactions remain outside the reach of secondary sanctions and what types of evidence OFAC will require for enforcement or defense. Failing to adapt compliance frameworks could dramatically increase regulatory risk and lead to OFAC-imposed penalties.
For ongoing guidance, consult OFAC’s Cuba sanctions program updates and legal analysis from industry experts.
By the numbers:
- May 12, 2026 — Biden administration announces expanded Cuba sanctions.
- Secondary sanctions — Allow OFAC to penalize non-U.S. companies for certain Cuba-related dealings.
Yes, but: The full scope and specific transactions subject to secondary sanctions are still being defined by OFAC, leaving some uncertainty for compliance planning.
What's next: OFAC is expected to publish detailed guidance clarifying transaction types and potential exemptions in the coming months.