On 29 May, the US State Department removed Cuba from the State Sponsors of Terrorism list. This action comes immediately after the expiration of the 45-day waiting period after President Obama announced his intention to lift the designation. As we reported in our 15 April client update, Cuba’s removal from the list does not significantly affect the scope of US sanctions against Cuba. However, the designation has caused some financial institutions and other firms to be reluctant to deal with Cuba even when authorised by US law or in matters beyond US jurisdiction. For that reason, the removal of the designation may help alleviate some obstacles to trade between Cuba and third countries as well as the limited categories of authorised trade between Cuba and the United States.