Cuba Sanctions Update: OFAC Clarifies Humanitarian Exemption For Non-Us Persons
Following our Cuba Sanctions Alert in May 2026, in which we outlined the significant expansion of US sanctions risk for non-US persons under Executive Order 14404 of May 1, 2026, OFAC has issued a new FAQ 1264 on August 6, 2026, providing clarification for those engaged in humanitarian trade with Cuba.
What FAQ 1264 says
OFAC has confirmed that it does not intend to target non-US persons under EO 14404 for transactions involving the supply, directly or indirectly, of the following to Cuba:
- Agricultural commodities, including food
- Medicine and medical devices
- Replacement parts, components, and software updates for medical devices
Importantly, this non-targeting posture applies even where such transactions involve a person designated under EO 14404, or an entity in which a designated person holds a 50% or greater interest.
This provides reassurance for shipowners and operators carrying humanitarian cargoes to Cuba who may otherwise have been concerned about exposure to secondary sanctions through contact with designated entities such as GAESA.
What this means for Members
This clarification is broadly consistent with the protection already afforded by OFAC General Licence 1, but FAQ 1264 provides an additional degree of assurance for non-US persons specifically.
Members engaged in the carriage of food, medicine, or medical supplies to Cuba can take some comfort from OFAC's stated position.
EO 14404 continues to carry significant secondary sanctions risk across all other sectors of Cuba-related trade, and the broader warnings set out in our May update remain fully applicable.
OFAC FAQ 1264 and more FAQs are available on the OFAC's Sanctions FAQs for Cuba page.
Cover
Members are reminded that cover is not available under the Club's Rules for any trade, voyage, or transaction that is in breach of applicable sanctions. Members who are uncertain whether a proposed fixture, cargo, counterparty, or port call may engage the EO or the CACR should seek guidance before proceeding.
It should also be borne in mind that other provisions of US sanctions which remain in force against Cuba may mean that US insurers and reinsurers are unable to pay liabilities which involve Cuba or Cuban entities. Under the Rules the Club is unable to reimburse Members for sums which are unrecoverable from its reinsurers because of sanctions (for details please refer to the section headed "Club Cover" on our main sanctions webpage).