Western Union Suspends Money Transfers to Cuba
Due to restrictions ordered by Trump
The inclusion of the regime’s financial entity, Orbit, on the US blacklist prevents transactions with the Island.
HAVANA TIMES – The anticipated action by the Trump administration halting Western Union operations in Cuba is now in effect. The US company suspended remittance transfers to the Island as of Wednesday, February 5, citing increasing “restrictions from the government” of the United States, which have made it impossible to maintain the service.
“They haven’t told us if this will be permanent, but for now, we cannot process transactions with Cuba,” a Western Union employee in Miami told 14ymedio. This newspaper contacted three other offices in Florida, all of which confirmed the information. So far, the company has not issued an official statement.
The company’s website, which allowed remittances to be sent to the Island—received in Cuban pesos—displayed “problems” when attempting to complete a transaction, prompting users to “try again later.” Another employee explained to this newspaper that the issue was the recipient country: “They removed it,” she said. “Not even by coming to the office. Transfers have been suspended since February 5.”
A third person provided a supposedly technical explanation, claiming that the issue affected the entire company: the website was “blocked.” “We can’t log in with the password we have,” she said. Lastly, another employee—who assists customers in English and was less informed about the situation in Cuba—said she was unaware of the issue: “There’s nothing wrong with the system.”
The suspension of money transfers via Western Union had been expected since Trump won the elections. The final blow came when Secretary of State Marco Rubio reinstated and expanded the Cuba Restricted List on February 1, prohibiting transactions with companies controlled by the Cuban military or counterintelligence.
In his statement, Rubio said the blacklist was reinstated “to deny resources to the very branches of the Cuban regime that directly oppress and monitor the Cuban people while controlling large sectors of the country’s economy.” The list included Orbit, the remittance processing company whose ties to the Cuban Armed Forces have been documented by the press.
Orbit, which the Central Bank of Cuba authorized in 2022 to manage remittances from various platforms, processes Western Union transfers. The entity, which serves Financiera Cimex—controlled by the military conglomerate Gaesa—also handles money entering the country through platforms like VaCuba and Cubamax.
In May of last year, after resuming remittance transfers—suspended for two years—Western Union partnered with Katapulk, the online shopping platform owned by Cuban-American businessman Hugo Cancio. A proponent of engagement with the regime and one of its financial allies in Florida, Cancio announced “an additional channel for sending money,” “using Western Union’s rails.”
According to Western Union’s president for North America and Latin America, Rodrigo Garcia Estebarena, the company’s service is a “crucial connection between those living in the United States and their family members in Cuba.”
Many voices in the Cuban exile community, including Republican Congresswoman María Elvira Salazar, believe remittances have done nothing but provide the regime with the hard currency it desperately needs to stay afloat amid one of the most severe crises the country has faced.
A report published last December by Cuba Siglo 21 states that Gaesa has lost more than 95% of the US-to-Cuba remittance market. According to the organization’s calculations—based on revenue through May 2024—the military conglomerate will collect $81.6 million in remittances last year, a mere 4.13% of the total revenue generated in 2023, which was $1.972 billion. This decline, the report argues, is due to a “silent financial citizen rebellion against its banking monopoly,” which in practice means that a large portion of the money sent from abroad to the Island is now funneled “through a network of more than 150 informal banks.”
First published in Spanish by 14ymedio and translated and posted in English by Havana Times.
Stephen. 9 years ago I had several meetings with an Cuban ambassador both in my home court and in Havana to lay out a plan for him to end the Embargo. It was at a time when it had a good chance. I told him the possibility of getting all financing to satisfy ALL the compensation including my own as well as the debt to the Paris Club and others so that Cuba could be clear. At the ambassador’s private home I introduced him to my country’s meat producers association chairman to secure the supply of meat to Cuba.
Stephen you missed the whole point there are private systems in place from Canada Mexico and 2 or 3 other countries call me I give the agents some are for profit some use part of the transfer frees to help provide medical supplies for low income Cuban people. Their services are available and should have no limits as they do not help the Cuban gov . You have said before that Canada is a rich country and does not have certain problems. I don’t care what you think about me the country of Cuba needs major changes
Stephen I never said I only earn $500 per month I am disabled and I said spend $500 per month on myself and donate the rest I am a major supporter of homeless and disabled I have donated over $30,000 US away per year don’t spend money on alcohol or smokes or expensive rent look me up on the Internet.
Stephen Webster writes: “So I know about the suffering first hand I work as a truck driver when I can as and often sleep in homeless shelters if not working or in a car if I have access to one I live in Canada on less than $500 CD a month plus medicine not paid by the gov.” Sad.
So, Stephen, what you are implying to the readers is because you only have a part time job, you sleep in homeless shelters or you sleep in a car, and you earn a pittance per month, then, hey, everyone reading this, shouldn’t all Cubans living in Cuba be economically uncomfortable like me. Shouldn’t all Cubans be limited to the amount of money foreigners choose to send?
Again, you limit all Cubans to as you stated: “I do not like trump but agree 100% with ending all official ways to send money to Cuba except a amount of $200 U S or less to either a tourist or a Cuban person to a Max of 2 times in 12 months.” No. No. No.
No, Stephen, what you are suggesting is totally unacceptable. Your personal home life predicament must not set the monetary bar, or standard, for struggling economically depressed Cubans. You are conflating two entirely different worlds. Don’t you see that?
Again, I stand by my conclusion to you: “There should be no monetary limit to what foreigners would like to give to ordinary Cubans. Foreigners can give as much or as little as their economic purse permits. Period.
We know that the totalitarian government takes a cut; nevertheless, one does not cut the nose off to spite the face.” End of story.
Reply to Stephen I just came back from spending 31 days in Cuba volunteer in remote area took down 100 kgs of medicine mosquito repellent power banks one for 3000 watt and a donated 4000 watt generator inverter that came from Costco I seen many things in Cuba are 2 times the price of in Canada the duty and shipping by air with me coming with was as much as the generator would cost in Canada. I had 2 cell phones stolen by force stabbed with a screwdriver when they got was $100 U S and $12 rechargeable flashlight from Costco I again by 3 people had my money pouch stolen with maybe $2 U S in one dollar bills and between 3000 and 4000 pesos while when attacked by 3 men while myself and a doctor was seeing a sick person the last night I was Cuba. So I know about the suffering first hand I work as a truck driver when I can as and often sleep in homeless shelters if not working or in a car if I have access to one I live in Canada on less than $500 CD a month plus medicine not paid by the gov I could not see how it is possible to live in Cuba and support a family on less than $100 U S or 33 000 pesos a month I have many people now trying to fleace or trick people in Cuba. But it can happen in Canada I am not afraid to sleep on the street all night but in Cuba after midnight I am afraid to walk 3 blocks after the power is off
I am not a fan of the current Cuban gov and when I push for a investigation into the attacks on the Cuban people offered deport me . But really believe a better system of money transfer can be done with use of a PayPal or bank account in Mexico and or Canada or two other countries I will not mention because they are being used now
Stephen Webster writes: “I do not like trump but agree 100% with ending all official ways to send money to Cuba except a amount of $200 U S or less to either a tourist or a Cuban person to a Max of 2 times in 12 months”.
Listen to this! Stephen, your suggestion sounds like it comes directly from a Cuban Revolutionary totalitarian government handbook. Two hundred U S dollars ($200 U S) or even less to a poor, struggling, economically deprived Cuban citizen. Really?
How about if the Canadian government limited to you, Stephen, a pittance, a paltry, a poverty restricted dollar amount . . . and ohhh in your words: “. . . to a Max of 2 times in 12 months”? Your suggestion sounds utterly cruel. But then since you agree with Donald Trump’s economic policies regarding Cuba, your submission is understandable.
Do you really understand the hardships the majority of ordinary Cubans are undergoing? Have you ever walked down a Cuban street and priced the cost of a pair of sneakers, a bicycle, a watch, medicines? Those mentioned items cost more in Cuba than they do in the U S or Canada. How about all those young Cubans seeking to exit the island in search for a better life who need money to pay transportation ? Are you not limiting their potential freedom?
You see, Stephen, in the Canadian city or town you live in there is market competition so that retailers compete with one another to discount prices. Not so in Cuba. Cubans if they want to live like everyone else, and why shouldn’t they, must pay very steep prices for goods and services we here in the West take for granted.
So, in your limiting Cuban citizens to a minimal monetary amount, arrived at from who knows where, is rather insulting and unjust to all ordinary Cuban citizens struggling to earn a living, feeding and clothing their families, and literally trying to stay alive.
There should be no monetary limit to what foreigners would like to give to ordinary Cubans. We know that the totalitarian government takes a cut; nevertheless, one does not cut the nose off to spite the face.
Peter Cuba is bankrupt and can not buy fuel or medicine so they have no way to write $40 billion in compensation or more
I do not like trump but agree 100% with ending all official ways to send money to Cuba except a amount of $200 U S or less to either a tourist or a Cuban person to a Max of 2 times in 12 months. The Cuban gov will feel the effects and maybe will allow people to transfer money by card from other parts of the world and use a different currency like Mex pesos or Canada $ with a special agreement with those gov agree to put the equivalent of $3 billion U S in paper currency to allow people to use in Cuba and electronic payment for goods with Cuba gov putting up huge amounts of underused farm on a20 year lease and sugar mills as security
I told you So. And this is only the beginning. Until Cuba compensates the foreign Investors for their stolen properties this will be Cubas future.