Cuba's MSMEs Need Ownership Transparency To Prevent New CRL Chilling Interest In Engaging With MSMEs. A Dynamic Online Directory Can Solve That Concern. Not Much Time.
/Critical for micro, small, and medium-size enterprises (MSMEs) in the Republic of Cuba is for the government of the Republic of Cuba to maintain a dynamic and easily accessible online directory of MSMEs with 1) identifiers as to both direct and indirect ownership of each MSME 2) the operational address for each MSME and 3) contact information for each MSME. An article published on 5 August 2022 by The Miami Herald and El Nuevo Herald illustrates why a directory is required:
LINK Miami Herald U.S.-based online food stores were meant to help Cubans. Why are they selling Havana Club?
LINK El Nuevo Herald Tiendas de alimentos de EEUU debían ayudar a los cubanos. ¿Por qué venden Havana Club?
For the Biden-Harris Administration (2021- ), lack of a directory will impede the expansion of engagement with MSMEs and may impact those policy and regulatory changes in place relating to MSMEs- particularly those focused upon direct equity investment in and direct financing to MSMEs authorized by the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury.
A priority for the government of the Republic of Cuba must be transparency as to the ownership and legal status of Republic of Cuba government-operated companies and MSMEs. Absent self-installed transparency, the United States Department of State is likely to be pressured by members of the United States Congress to create a sub-section to the Cuba Restricted List (CRL) to identify MSMEs prohibited from receiving direct equity investment and direct financing from individuals and entities subject to United States jurisdiction. Such a sub-section would have a chilling effect and stunt engagement with MSMEs. The existence of a CRL referencing MSMEs would taint all MSMEs regardless of their ownership and purpose.
The Biden-Harris Administration supports the re-emerging private sector in the Republic of Cuba. Policy initiatives and changes, and regulatory changes will continue to focus upon lessening impediments on the re-emerging private sectors in the Republic of Cuba.
In May 2022, the Biden-Harris Administration authorized the first direct equity investment in and the first direct financing to a privately-owned company located in the Republic of Cuba. Subsequently, the OFAC added opportunities and amended existing regulations to provide mechanisms for further engagement with privately-owned companies located in the Republic of Cuba.
In July 2022, the government of the Republic of Cuba confirmed direct equity investment and direct financing are authorized for MSMEs. The regulations have yet to be published.
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