MIAMI, Jan 12 (NNN-AGENCIES) — Western Union announced it had resumed moving money from the United States to Cuba, more than two years after sanctions forced the US-based firm to shut down operations on the communist-run island.
The resumption of money transfer services to Cuba “is currently in a test phase,” the company said in a statement, noting that US customers are limited to sending a maximum of $2,000 per day and only from select sites in the Miami area.
It added that money will only be deposited as US dollars into three Cuban banks: Banco Popular de Ahorro, Banco Metropolitano S.A. and Banco de Credito y Comercio (Bandec).
“The close connection between our U.S. customers and their families living in Cuba together with the role our services play in helping create better lives are inextricably linked,” said Gabriella Fitzgerald, president of Western Union North America.
“We are delighted to offer this critical connection once again for our customers.”
Cuba is experiencing its worst economic crisis since the 1990s and has seen record levels of its citizens leaving the island in recent years.
Remittances from the United States accounted for an estimated six percent of Cuba’s GDP until 2020, when the administration of then-president Donald Trump imposed sanctions on Fincimex, Western Union’s in-country affiliate, accusing it of aiding the Cuban military.
Cuba’s government in early 2022 set up a separate entity to handle money transfers from abroad, which the administration of Trump’s successor Joe Biden has since authorized to receive US funds.
“The Biden administration welcomes new channels of authorized remittances that flow to the Cuban people without enriching the Cuban military, intelligence, or security services,” the US State Department said in a statement.
According to John Kavulich, president of the US-Cuba Economic Council, the move by Washington should not be viewed as a “gift to the Cuban government.”
“This puts a lot of pressure on them,” he said, as Cuba will have to deal with the repercussions of an influx of US currency into its economy.
Nonetheless, the reopening of Western Union services is “very good news,” Kavulich added, while condemning Havana’s decision to wait so long to set up a new transfer facility.
“They could have done that in November of 2020 and saved a lot of suffering to their own people, but they made a political decision and they stuck with it,” he said. — NNN-AGENCIES
