The DEMOCRACIA Act is a law that punishes foreign companies and individuals who do business with Cuba's government, particularly those supporting the military, defense sector, or any government agencies involved in human rights abuses. If you're a foreign business or person working with these Cuban sectors, the U.S. can freeze your assets and ban you from entering the country. The law also targets foreign people who help Cuban officials commit corruption or human rights violations.

There are some exceptions built in—the U.S. won't punish people sending money to immediate family members in Cuba or conducting legitimate business at U.S. military and diplomatic sites. Humanitarian aid like donating food also gets a pass. If you're a U.S. person or company wanting to do something that's technically allowed under the law, you have to get written permission from the Treasury Department first.

The sanctions can only be lifted if the Cuban government legalizes all political activities, protects political freedoms, and takes other steps toward democracy—and even then, Congress has to vote to approve ending the sanctions. The President can waive these rules if it's important for national security, but otherwise, these penalties stay in place to pressure Cuba's government to change its practices.

DEMOCRACIA Act

Scott, Rick

Denying Earnings to the Military Oligarchy in Cuba and Restricting Activities of the Cuban Intelligence Apparatus Act or the DEMOCRACIA Act This bill provides for asset- and visa-blocking sanctions for conduct relating to Cuba. It also establishes an interagency task force to facilitate access to uncensored internet in Cuba. The President must sanction foreign persons that provide financial support to specified Cuban government sectors (e.g., the defense sector) or any other government sector that the President certifies is involved in human rights abuses or terrorism. This includes foreign persons that (1) are military contractors or mercenaries operating on behalf of the Cuban government, or (2) violate laws restricting trade with Cuba. Specified transactions, including remittances to immediate family members (subject to some limitations) and payments related to U.S. military and diplomatic sites, are not subject to these sanctions. The President must also sanction (1) foreign persons complicit or engaged in human rights abuses or corruption, (2) foreign persons supporting such conduct, and (3) specified Cuban government officials and their affiliates. The bill provides humanitarian exceptions to these sanctions, for example, donating food or agricultural commodities to organizations or individuals unaffiliated with the Cuban government. The President may not license sanctionable conduct, and U.S. persons seeking to engage in a permitted transaction must submit a written request to the Office of Foreign Asset Control of the Department of the Treasury. The President may waive the sanctions in the interest of U.S. national security. To terminate the sanctions, the President must certify that the Cuban government has legalized all political activities and taken other steps to promote political rights and freedoms. Congress must then enact a joint resolution approving the termination.