The Obama Administration announced on Friday that it will ease its restrictions on business and travel to Cuba in an effort to mend its severed ties with the communist country.

Starting last December, President Obama began taking steps in order to advance the U.S. effort to normalize relations with Cuba, following a 54-year frozen relationship that began when the former Cold War foes cut ties in 1961.

The White House issued regulations easing restrictions on American companies seeking to do business in Cuba in the latest action to weaken the U.S. trade embargo.

"A stronger, more open U.S.-Cuba relationship has the potential to create economic opportunities for both Americans and Cubans alike," U.S. Treasury Secretary Jack Lew said in a statement.

"By further easing these sanctions, the United States is helping to support the Cuban people in their effort to achieve the political and economic freedom necessary to build a democratic, prosperous, and stable Cuba," he said.

The rules, which go into effect on Sept. 21, allow U.S. businesses to open locations in Cuba and eliminate limits on the amount of money people can send back to the Caribbean nation. The rules also address travel, telecommunications, Internet-based services, business operations, banking and remittances in order to boost so-called "people-to-people" contact between Americans and Cubans, reports Reuters.

Authorized travelers will now be permitted to open and maintain bank accounts in Cuba, while close relatives will be allowed to accompany authorized travelers going to Cuba for educational, journalistic, humanitarian, research or religious activities.

Under the rules, companies will also be able to import Cuban mobile applications to the U.S. and hire Cuban nationals, notes BBC News.

The rules, however, do not permit tourist activity in Cuba.

According to Commerce Secretary Penny Pritzker, the changes build on commercial enterprises and "have the potential to stimulate long overdue economic reform across the country."