New US sanctions threaten remittances to Cuba
New US sanctions against seven Cuban companies could affect the sending of remittances to Cuba by US citizens, and which would have a major economic impact on the island nation.
Remittances are the second-largest source of revenue for the country and a lifeline for many families.
Last week, US Secretary of State Mike Pompeo announced the inclusion of the seven Cuban companies and hotels in the list of restricted entities linked to the Cuban military. Under the sanctions, persons subject to the US jurisdiction are prohibited from engaging in direct financial transactions with these entities.
The companies include Fincimex, a subsidiary of Cimex, and which is part of GAESA, a larger conglomerate of companies controlled by the Cuban military. Fincimex processes remittances to Cuba and is the exclusive representative of Western Union on the island. Western Union offers a popular service through which thousands of Cubans in South Florida send money to their relatives.
Fincimex, which is registered in Panama, is also the only financial institution that processes electronic cards in Cuba, including transactions involving cards issued by foreign banks.
