Trafficking in Expropriated Property: Civil Liability under Helms‐Burton
| DOI | https://doi.org/10.1108/eb025805 |
| Pages | 354-356 |
| Published date | 01 February 1997 |
| Date | 01 February 1997 |
| Author | Kern Alexander |
| Subject Matter | Accounting & finance |
Journal of Financial Crime — Vol. 4 No. 4 — Investigations
Trafficking in Expropriated Property: Civil Liability
under Helms-Burton
Kern Alexander
On 12th March, 1996, President Clinton signed
into law the Cuban Liberty and Democratic Sol-
idarity Act.1 The Act, better known as the Helms-
Burton bill, intends to increase pressure on the
Castro regime by tightening the 35-year-old US
trade embargo against Cuba. Title III of the Act
permits US nationals whose property was expro-
priated without compensation by the Castro
regime to sue foreigners in the US federal court if
they benefit from the use of such confiscated
property.2 Title III also contains sweeping language
which allows US nationals to sue any US lending
institution which finances any type of business
activity affecting expropriated property.3 Further,
Title IV requires the revocation of travel visas
issued by the US Government to any foreign
person who is the officer or controlling share-
holder of a foreign corporation which docs busi-
ness affecting expropriated property in Cuba.4
These provisions have already angered US trading
partners and will almost certainly invite retaliation
against US exporters.
The Clinton administration initially opposed the
Helms-Burton bill because it appeared to violate
basic principles of international law.5 However,
after the Cuban Air Force intercepted and shot
down two US-based civilian aircraft in the Florida
Straits on 24th February, 1996, the President,
under intense political pressure, reversed his policy
and signed the bill into law on 12th March, 1996.
Although Helms-Burton has become US law, the
President has the authority to suspend or waive the
Page 354
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