Reports are coming in of a new letter being sent out by OFAC. Titled "CAUTIONARY LETTER," this document suggests that perhaps, just perhaps, the prosecution of Trading with the Enemy Act: Helms-Burton, Cuban Assets Control Regulations, is being deprioritized. Why is this happening now? One might speculate that the incoming Obama administration's softened stance on interactions with Cuba might be at the heart of it. Perhaps it's the worldwide economic meltdown that's drawing their attentions to other more important issues. Could be any one of a number of other factors or several of these in concert.
In any case, the wording of the letter suggests that ongoing enforcement actions are being summarily terminated.
The timeline leading up to this particular letter began in the first two months of this year with the receipt of an
"R" Letter or
Requirement to Furnish Information. Of the three interdiction letters that have been sent out
(R, W, C), this was the worst in that it made a formal request for the accused to report what they purchased as well as any and all financial records related to said purchase. It also identified the world region from which the goods were allegedly purchased, which in this case, was a special administrative region in the Far East.
The individual responded by saying that he had no knowledge of this transaction and thus had no records.
Then at mid-year, OFAC issued a “
Prepenalty Notice.” In this letter, OFAC detailed precisely the goods (right down to the marca, vitola, and number of sticks in the box) and time frame the alleged purchase of Cuban goods occurred. At this point, other folks hit with these letters have actually called the number on the letter and copped to being a total stupid-head for trying to order those bad, godless commie cigars. They were then given advice with respect to making a counteroffer against the proposed civil fine including what mitigating circumstances might result in reduction of the penalty. This typically resulted in a reduction or elimination of the fine. Those who ignored the Prepenalty Notice were typically hit with a fine up to the full amount of the original penalty.
I’ve been going over the information that has been collected over the nearly two years that this thread has been active. While it may still be too early to say for sure, I do hope that this Cautionary Letter signals a turning point in the actions and priorities of the OFAC away from less frivolous and toward more pressing concerns. For example, the export of prohibited technology to unfriendly states.
I’m now also of the opinion that the largest Far East retailer, that suddenly found itself in the eye of the storm, need not have turned over one iota of information to anyone for this persecution to have happened. All fingers point to at least one of the major credit card companies and, more critically, one online payment processor (no longer being used by any reputable vendor of which I’m aware) as being fully necessary and sufficient for OFAC to have obtained any and all records necessary to initiate these enforcement actions.
It is deplorable that this retailer has been made to suffer. As one of the very few vendors with an unsullied reputation, the damage sustained was not only undeserved but also unjust.
To all my Habanos-loving brothers and sisters out there, I’d ask that you let me know if you hear anything further about these new letters. I have reports from various regions of the online world but as this might signal a significant change in the environment surrounding OFAC’s policy on enforcement of the Embargo, the more timely information we can gather and integrate, the quicker we will be able to come to a more accurate conclusion.
Wilkey
