The Central Bank of Cuba announced that the interruption of the credit companies’ activities was linked to the suspension of foreign bank services that processed these transactions. The bank stressed this was a consequence of the expanded sanctions regime on Cuba.
Key Takeaways:
Trump issued EO 14404 on May 1, forcing a bank to cut ties with Fincimex and next halt Cuba transactions.Halting Visa and Mastercard hits Cuba’s tourism market, next blocking 100% of income from Western cards.Effective June 6, tourists must next rely on Mir Cards or UnionPay as OFAC broadens trade sanctions.Mastercard and Visa, two of the world’s largest credit companies, will no longer offer payment processing services in Cuba.
The Central Bank of Cuba announced on Wednesday that it had received a communication from an undisclosed foreign bank that processed these transactions in Cuba, stating that it would halt its commercial relationship with Fincimex, a payment intermediary.
The central bank stressed that this action “is directly related to Executive Order No. 14404 of May 1, issued by the President of the United States of America, Donald Trump, as part of his strategy of strangulation against the people of Cuba.”
This means that Cuba cannot receive income from the sale of goods and services transacted using international cards operated by Visa and Mastercard.
The measure would primarily affect tourists, who would have to rely on other payment methods while staying on the island. Other payment methods, including national prepaid cards, Mir Cards and UnionPay cards, will operate normally.
