Trump’s New Cuba Sanctions Executive Order Targets Foreign Businesses and Banks

On May 1, 2026, President Donald Trump signed Executive Order 14404, dramatically intensifying US sanctions on Cuba. Unlike previous measures that primarily targeted Cuban entities and US persons, this new order authorizes sanctions on non-US persons—including foreign companies and financial institutions—who do business with Cuba or with other sanctioned parties connected to the Cuban government.

The White House fact sheet accompanying the order paints Cuba as a threat to US national security, accusing the island’s government of supporting terrorism and regional instability. This justification is used to grant the Treasury Secretary, in consultation with the Secretary of State, broad authority to designate foreign actors "operating" in key Cuban sectors such as energy, defense, metals and mining, financial services, and security.

Crucially, the order does not define what it means to “operate” in these sectors, giving the administration wide latitude to impose sanctions on a broad range of foreign businesses. Blocking sanctions can be applied to entities owned or controlled by the Cuban government, those complicit in human rights abuses or corruption, and even adult family members of designated persons.

The order also targets foreign financial institutions that facilitate “significant transactions” for sanctioned Cuban entities or individuals. While “significant” is not explicitly defined, it typically considers factors like transaction size, frequency, complexity, and whether deceptive practices were used. This opens the door for aggressive enforcement against banks worldwide, pressuring them to sever ties with Cuban-linked clients or face US penalties.

On May 7, 2026, Secretary of State Marco Rubio announced the first designations under the order, including GAESA—a powerful Cuban conglomerate operating in financial services—and Moa Nickel S.A., active in metals and mining. Ania Guillermina Lastres Morera, a senior GAESA official, was also designated.

To soften immediate disruption for US persons, the Treasury’s Office of Foreign Assets Control (OFAC) issued Cuba General License 1, allowing transactions already authorized under existing Cuban embargo regulations to continue. However, this does not shield foreign actors from new sanctions risks.

This executive order marks a significant escalation in the Trump administration’s Cuba policy, extending US sanctions reach well beyond its borders and threatening global businesses and banks with penalties for engaging with Cuba. It reflects a pattern of authoritarian overreach by this administration—using vague legal language to expand punitive measures without congressional approval, targeting not just adversaries but anyone caught in the crossfire.

For foreign companies and financial institutions, this creates a perilous environment where routine business with Cuba could trigger severe US sanctions. For Cuba, it intensifies economic isolation and hardship. For Americans concerned about democratic norms and international law, it is another example of unchecked executive power wielded to punish perceived enemies with little transparency or accountability.

We will be watching closely as this new sanctions regime unfolds, exposing the Trump administration’s aggressive tactics to extend US power globally at the expense of legal norms and diplomatic engagement.

Source: Morgan Lewis & Bockius LLP, May 2026
https://www.morganlewis.com/pubs/2026/05/new-executive-order-threatens-sanctions-against-non-us-persons-doing-business-with-cuba