Cuba announced on Wednesday June 3 the suspension of payments by Visa and MasterCard cards from Saturday after the breakdown of relations between a foreign bank and a financial institution on the island, due to American sanctions.
“On June 2, a communication was received from the foreign bank that processes operations carried out in Cuba using Visa and MasterCard cards, informing of the interruption of its relationship with Fincimex SA,” the Central Bank of Cuba said in a statement. Fincimex is the financial arm of the Cuban economic-military conglomerate Gaesa, sanctioned by the United States.
The Central Bank of Cuba clarified that its foreign partner, whose name it did not reveal, indicated that “it becomes illicit and impossible to continue the execution of the agreements with the Cuban entity.” “This interruption is directly linked to the executive order” signed on May 1 by Donald Trump and “is part of the strategy of asphyxiation against the Cuban people,” the press release continues.
Foreign bank cuts ties
Since January, the Trump administration has pursued a policy of maximum pressure against Cuba, claiming that the communist island, located 150 km from the coast of Florida, represents “an extraordinary threat” to the national security of the United States. In addition to its oil embargo targeting the island of 9.6 million inhabitants, Washington is targeting the “Business Administration Group” (GAE.SA or Gaesa) linked to the army and active in many key sectors of the island’s economy.
Gaesa was one of the first entities sanctioned under the May 1 presidential decree signed by Donald Trump. The conglomerate was already under sanctions, but the new decree introduced secondary coercive measures against companies that collaborate with it.
According to the Office of Foreign Assets Control (OFAC), which reports to the US Department of the Treasury, these companies have until Friday to adjust their activities or face restrictive measures. On Tuesday, Havana defended Gaesa’s role, saying it was always aimed at confronting the U.S. embargo in force since 1962 and generating foreign currency to keep the Cuban economy functioning.
