The United States has expanded its Cuba sanctions regime, authorising sweeping financial penalties and entry bans tied to the Cuban government and those who support it.

A new executive order signed by President Donald Trump builds on a national emergency declared in late January and gives the State and Treasury Departments broad latitude to:

• Block the US property and interests in property of foreign persons who operate in key Cuban sectors, including energy, defence, metals and mining, financial services and security, and any other sector later named by Treasury.
• Sanction individuals and entities tied to the Cuban government, their owners and controllers, leaders and directors, as well as those providing material, financial or technological support to them.
• Designate people responsible for serious human-rights abuses or corruption in Cuba, and extend blocking to their adult family members.
• Suspend US entry for non‑citizens who meet the designation criteria, unless the State Department grants a national‑interest exception.

In a move likely to reverberate well beyond the US, the order authorises “secondary” sanctions on foreign financial institutions that conduct or facilitate significant transactions for designated persons. Treasury can bar such institutions from opening or maintaining US correspondent or payable‑through accounts, or fully block their property in the US. That raises compliance stakes for banks globally, including those in New Zealand with US dollar clearing or other US touchpoints.

The order also:

• Prohibits US persons from most dealings with designated parties and from making donations to them.
• Allows listings without prior notice, citing the risk of asset flight.
• Directs State and Treasury to issue rules and guidance and to make recurring reports to Congress.

Existing licences under the Cuban Assets Control Regulations (31 CFR Part 515) remain valid unless changed by forthcoming Treasury actions, but the order makes clear that earlier contracts or permits do not shield parties from new prohibitions.

The White House frames the move as a response to ongoing actions by the Cuban government that it says threaten US national security and foreign policy and violate the values of democratic societies. Specific designations of individuals, entities and any named sectors will follow through Treasury’s Office of Foreign Assets Control.

What it means for New Zealand:

• NZ businesses are not directly subject to US jurisdiction, but dealings that touch the US financial system, involve US persons, or involve designated parties can trigger exposure.
• Banks and insurers with US ties are likely to scrutinise Cuba‑related activity more closely, particularly any transactions linked to Cuban state entities or the listed sectors once designations are made.
• The travel restriction targets people who meet the designation criteria; it is not a general ban on Cuban nationals.

Further detail will depend on who Treasury and State designate and how OFAC implements the new authorities.