How the embargo affects SA

How US rules reach outside the US

The US embargo is written into US law. ³ Some of its rules reach people and firms in other countries. These are called extraterritorial sanctions.

A payment can start and end outside the US and still pass through a US bank. Until 29 September 2026, US banks could process these “U-turn” payments when Cuba had an interest in them. On 30 September 2026, OFAC removed that permission. US banks may now reject such payments. ¹

An order signed on 1 May 2026 allows sanctions on foreign banks that handle significant transactions for people the order blocks. ² OFAC repeats this in its alert. ¹ The risk applies only to dealings with blocked persons.

The Cuban Democracy Act of 1992 bars US-owned companies in other countries from trading with Cuba. It also bars a ship from loading or unloading freight in the US if it traded with Cuba in the previous 180 days, unless the Treasury grants a licence. ³

The Helms-Burton Act lets US nationals sue people who “traffic” in property that Cuba confiscated. Presidents suspended this right for years. The suspension ended on 2 May 2019. ⁴ The Act also requires the US to deny entry to people involved in such trafficking, with case-by-case exceptions. ³

The May 2026 order covers foreign persons who operate in the energy, defence, metals and mining, financial services or security sector of the Cuban economy. ² For a foreign bank, the possible penalties include limits on its US correspondent accounts and the blocking of its property in the US. ²

Since 30 September 2026, US persons also cannot make indirect financial transfers involving entities on the Cuba Restricted List. The State Department keeps that list, which covers entities controlled by Cuba’s military, intelligence or security services. ¹

What South Africa’s government has said

In June 2015, DIRCO briefed Parliament’s international relations committee. The record says South Africa had been unable since 2012 to carry out a R350 million aid package for Cuba “due to threats of sanctions from the US.” ⁵

At the same meeting, a DIRCO official said trade had to be in US dollars, and that this was a challenge. The record’s summary adds that South African businesses and banks ran the risk of US penalties. ⁵

On 7 March 2025, South Africa replied to a UN request for information. It said the embargo’s extraterritorial reach “remains a major constraint” on trade between South Africa and Cuba. ⁶

In the same reply, South Africa asked the US to take Cuba off its list of state sponsors of terrorism and off the Cuba Restricted List. ⁶

On 24 September 2026, Minister Ronald Lamola told the UN General Assembly that unilateral coercive measures harm third countries. ⁷

What is not documented

We found no published case of a named South African bank refusing a Cuba payment, and none of a South African company being fined or sued under these rules.

Parliament’s August 2026 statement on Cuba does not discuss effects on South African firms or banks. ⁸

The U-turn and foreign-bank rules date from 2026, and no source we found reports how South African banks have responded to them. You can ask DIRCO about this through the action linked below.