Once the image of US financial engagement with Cuba beneath the Obama administration, trip rental firm Airbnb has been fined by the Treasury Department for obvious violations of the US embargo, the Office of Foreign Assets Control (OFAC) mentioned on Jan 3.
OFAC mentioned in a press release that the corporate agreed to pay US$91,172.29 (RM381,191) to settle “its potential civil liability for apparent violations of sanctions against Cuba”. The violations included accepting reservations from company touring to the island outdoors the present 12 authorised classes and failing to maintain sure information.
Currently, Americans can journey to Cuba beneath 12 authorised classes, together with household visits, academic and non secular actions, some athletic competitions, assist for the Cuban folks and humanitarian tasks. Travelling for different skilled actions equivalent to journalism or analysis can be authorised.
The wonderful quantity was lowered from a most of US$600,000 (RM2.50mil) as a result of Airbnb disclosed the potential violations and cooperated with OFAC, the company mentioned.
“Airbnb operates in more than 220 countries and regions around the world and we take sanctions compliance very seriously,” Airbnb spokesperson Christopher Nulty mentioned. “We are pleased to have reached this agreement with OFAC.”
But OFAC’s enforcement motion can be a reminder of how a lot US coverage towards Cuba has modified previously six years. After a brief opening interval beneath Obama, president Donald Trump hit the Cuban authorities with a flurry of new sanctions and plenty of of the modifications to the embargo rules made by his predecessor have been reversed.
So far, little has modified beneath President Joe Biden, who has repeatedly criticised the Cuban authorities for its crackdown on dissidents and anti-government protesters.
Back in 2016, Airbnb’s president and co-founder, Brian Chesky, travelled to Cuba as a member of Obama’s delegation. The firm had began doing enterprise in Cuba the earlier yr, and it was the flagship for the brand new US coverage of engagement and assist to Cuban entrepreneurs.
In 2019, Airbnb reported 36,400 listings in Cuba, in keeping with the US-Cuba Trade and Economic Council.
The Obama administration additionally touted Airbnb’s success in Cuba to encourage American firms to do enterprise with the island.
But in its Monday information launch, OFAC took the other view, stating Airbnb’s obvious violations of the embargo “undermined” US overseas coverage towards Cuba. It additionally warned American firms from doing enterprise with sanctioned international locations.
“This action highlights the risks associated with entering new commercial markets, particularly one that has elevated sanctions risks such as Cuba, without fully anticipating the complexities of legally operating in a US-sanctioned jurisdiction and fully implementing appropriate sanctions compliance controls,” OFAC mentioned.
OFAC mentioned after Airbnb began doing enterprise in Cuba, the scaling up of its companies “outpaced the company’s ability to manage the associated sanctions risks via its technology platforms”.
According to the discharge, Airbnb has put in place new “sanctions compliance” measures to stop residents in Cuba from utilizing the platform as company and a screening course of to make sure Cuban hosts should not authorities officers or communist Party members, amongst different steps.
Airbnb obtained criticism after experiences that Vilma Rodríguez, Raúl Castro’s granddaughter, was renting a mansion by means of the corporate’s platform. – dpa
