Associated Press
New York, New York
8 February 2022

By Andrea Rodriguez

Cuba authorized a new financial institution to manage remittances and carry out other transfer operations after Washington blacklisted Fincimex, for 20 years a counterpart of Western Union, the main money transfer company from the United States.

The Official Gazette published the resolution signed by the president of the Central Bank of Cuba (BCC), Martha Sabina Wilson, accepting Orbit SA's request to "manage and process international transfers from abroad to Cuba" and "provide payment services from abroad through its infrastructure. Until November 2020, remittances were operated by Western Union with Fincimex, but in the framework of the tightening of United States sanctions on the island, in October of that year the government of then President Donald Trump canceled the permit for the company of his country and included Fincimex in a list of restricted companies, arguing that the Cuban counterpart was part of a conglomerate under military administration.

The origin of the firm Orbit SA is unknown except for the fact that the BCC resolution indicated in its considerations that it was incorporated on "February 3, 2020 with headquarters in Havana." Nor if Western Union will resume its agreement with the island. with this new financial institution or when the income of remittances will become effective.

[According to the regulations, the BCC may cancel or modify the license at the request of Orbit S.A. in the event of non-compliance by the entity with the applicable legal provisions in force. The Official Gazette indicates that Orbit S.A., was incorporated by Notarial Deed No. 54, of February 3, 2020, with headquarters in Havana, but no other precise information appears, such as members of the company or corporate purpose.]

Trump promoted the greatest adjustment of the measures against the Caribbean nation in decades with the aim of pressuring a change in the political model. In addition to the restrictions on remittances, he eliminated the permissions for U.S. travel to the island, issued provisions to suspend cruise ships, and increased persecution of third-country companies operating in Cuba. It also paralyzed consulate and embassy activity. His successor, Democrat Joe Biden, promised in his electoral campaign r adopt the policy of rapprochement promoted by Barack Obama, but to date has deepened Trump's policy with new sanctions on the grounds that Havana repressed protests in July. Meanwhile, Cuba is going through a severe economic crisis exacerbated by the COVID-19 pandemic with shortages of food and medicine and lack of fuel. The embargo against Cuba turned 60 last week and was imposed in the framework of the Cold War after the revolution that had triumphed in 1959 with Fidel Castro at the head deepened.

Last week, a State Department spokesman said the Biden administration was exploring options to facilitate remittances to Cuba while partially reopening the consulate to facilitate obtaining some categories of visas for which Cubans are currently required. travel to Guyana to process them.

Although the Cuban government never reported the number of remittances entering the country in 2020 – when the pandemic broke out – experts estimated the transfers that emigrants sent to their families on the island at around 3.5 billion dollars. Western Union used to do some 240,000 transactions a month for annual amounts between $900 million and $1.5 billion at its more than 400 branches. Other amounts traveled through banks or through mules or currency dealers.

LINK TO Gaceta Oficial 4 February 2022

English Translation (Google)

GOC-2022-122-O13 RESOLUTION 11/2022 WHEREAS: ORBIT S.A. constituted by Notarial Deed No. 54, of 3 February 2020, based in Havana, has requested a license from the Central Bank of Cuba to establish within the national territory a non-banking financial institution, specialized in managing and processing international transfers, as well as providing payment services for goods and services through its infrastructure, in both cases from abroad.

WHEREAS: Decree-Law 362, “Of the Institutions of the Banking System and Financiero”, of September 14, 2018, in its Article 7.1, establishes that the Bank Central de Cuba, depending on the type of institution to be created, issues the license that corresponds and defines the scope and class of operations to be carried out, as well as any other provisions of mandatory compliance in the exercise of the business of financial intermediation.

THEREFORE: In the exercise of the powers and attributions conferred in Article 25, subsection d), of Decree-Law 361 "Of the Central Bank of Cuba", of September 14, 2018, I RESOLVE

FIRST: Grant License in favor of ORBIT S.A. based in Havana, to engage in non-banking financial activity in the Republic of Cuba, under the terms arranged below: 1. Manage and process international transfers from abroad to Cuba. 2. Provide payment services from abroad, through its infrastructure, by goods and services duly authorized, according to current legislation.

SECOND: ORBIT S.A. applies intensified due diligence to these operations and complies as an obligated subject all the provisions of Decree-Law 317 "On the prevention and combating money laundering, financing of terrorism and proliferation of weapons of mass destruction”, of December 7, 2013 and its legal provisions complementary. February 4, 2022 OFFICIAL GAZETTE 339

THIRD PARTY: ORBIT S.A. You will not be able to carry out operations in which you commit with its assets to advance financing to any counterparty, as well as carry out operations reserved exclusively for banks, unless expressly authorized by the Central Bank of Cuba. FOURTH: ORBIT S.A. will request the registration of the License in the Registry of Financial Institutions and Non-Financial Entities attached to the Central Bank of Cuba, within fifteen business days following the notification of this license, in compliance with the provisions of Article 20.2 of Decree-Law 362 of 2018.

FIFTH: ORBIT S.A. within thirty business days of notification of this Resolution, carries out all the legal procedures that proceed to adapt its legal documentation to what is authorized in this license, and communicates to the Secretary of the Central Bank of Cuba the changes that have taken place.

SIXTH: The Central Bank of Cuba can cancel or modify this License upon request of ORBIT S.A. or when the provisions of this LICENSE are breached, or in the Decree-Law 362 of September 14, 2018, or other current legal provisions applicable. BE PUBLISHED in the Official Gazette of the Republic of Cuba. FILE the original in the Secretariat of the Central Bank of Cuba. GIVEN in Havana, on the thirty-first day of January, two thousand and twenty-two. Marta Sabina Wilson Gonzalez Minister

United States Department of State
Washington DC
4 February 2022

QUESTION: Yeah, thank you. Thank you for having me. Yesterday, secretary (inaudible) announced that the United States is considering reestablishing remittances to Cuba. My question is: Does the Biden administration really believe that it would be helping to the Cuban people and not the Miguel Diaz-Canel government? Can you tell us about the measures that the Washington will take to restore remittance to Cuba? Thank you.

MS PORTER: Thanks for your question, Luis. So broadly speaking, our policy towards Cuba focuses first and foremost for the support of the Cuban people, and that would include their political and economic well-being, and that would also include human rights. So that means that we’re committed to promoting accountability for Cuban Government officials involved in any human rights abuses.

I’d also say that, following the July 2021 protests, that the Biden-Harris administration created a remittance working group to explore options to facilitate remittances to Cuba that would go to benefit the Cuban people, and that would allow Cuban families to support one another, and also minimize or eliminate benefits to the – both the Cuban regime and its military.

Also, in August of 2021, the remittance working group shared its analysis, including additional options, with other members of the administration, and the administration continues to consider these options, as well as explore innovative solutions, and that also includes digital payments as a part of these solutions. Outside of that, we don’t have a specific timetable to share at this time.

LINKS To Remittance-Related Analyses

Cuba Could Resolve Western Union's Certified Claim By Waiving Four Months Of Electronic Remittance Transfer Fees. Biden Administration Should Support And Negotiate Certified Claims Settlement. September 17, 2021

Biden-Diaz-Canel Remittance Compromise: U.S. And Cuba Companies Suspend Transaction Fees Until 31 December 2021. Impact On 800 Publix Markets July 27, 2021

U.S. Department Of State Memorandum: The 17 Company Members Of The CRWG- Moving Remittances And Using Remittances; Cuba Entities Need Be Part Of The Process July 26, 2021

Is Biden-Harris Administration Nearing Decision To Reverse Trump-Pence Administration Prohibition On Cuba Military Earning Money From Remittances? July 15, 2021

At 6:00 PM Today, Final [For Now] Western Union Transactions With Cuba Are [Temporarily Perhaps] Suspended November 23, 2020

Cuba Central Bank May Provide Option For Western Union To Continue Services To Cuba: REDSA November 26, 2020

Western Union Data For Transfers To Cuba: 2.88 Million Annually- 24% To Havana; Florida 1st, Texas 2nd, New Jersey 3rd; US$200,000+ Could Be Aboard Each Flight From Miami November 19, 2020

Cuba Has Options To Retain Western Union Electronic Remittance Services- Transfer To A Bank? November 17, 2020

If Western Union Ends Remittance Services To Cuba, That Means A Return Of “Mules On Steroids”- The Impact Could Cripple MIA November 16, 2020

Western Union Preparing To End Money Transfers To Cuba On 22 November 2020.... Will Cuba Permit It? November 13, 2020

Cuba Says Western Union's 407 Distribution Points Will Close; Western Union Not Giving Up- 2016 Seems So Long Ago... October 28, 2020