Western Union plans to suspend remittances to Cuba from third countries; They can only be broadcast in the US.

The Western Union company plans to suspend remittance shipments to Cuba from third countries at the end of February, which would limit the issuance of financial transfers to its branches in the territory of the United States.

According to a statement sent this Wednesday to CyberCuba, The restriction would come into force on February 26.

“Due to the particular challenges posed by operating remittance services to Cuba in countries outside the United States, Western Union could lose its ability to operate money transfer services to Cuba from abroad. If this change occurs, it will be effective February 26, 2020," said Margaret D. Fogarty, Western Union spokesperson for the Americas area.

The official clarified that Western Union clients will be able to continue sending money to Cuba from the territory of the United States and Puerto Rico through the corporation's mobile application, through the digital page WU.com or visiting retail stores.

"We understand the impact this may have on our customers and will continue to follow up directly with them throughout this situation," Fogarty said.

The entry into force of the measure would put an end to the transactions that Western Union has been carrying out since 2016, with authorization from the United States Department of the Treasury, to process money transfers from anywhere in the world to Cuba.

Western Union's statement comes after the company's branch network around the world began receiving warning of possible suspension starting this month. A copy of the messages was reproduced this Wednesday by journalist Ignacio Luis González on his site Hot Free Press, which immediately set off alarm bells about the matter; the newspaper The New Herald He had the company's statement in advance.

The impact on the reduction of the flow of money from Western Union to the island would not be highly severe, since it is estimated that more than 85 percent of remittances destined for Cuba are issued from the United States. The money that flows to Cuba from other countries is not limited to the Western Union market, but is processed through multiple banks, commercial companies and travel agencies, with no limits on the amount sent.

However, it continues to add another barrier to money operations destined for residents in Cuba, after the decision of Donald Trump's administration to limit the sending of family remittances to $1,000 per quarter and eliminate donations to Cuban citizens from the United States.

The eventual measure is announced at a time when Western Union is also considering delivering in US dollars (USD) remittances sent to people in Cuba, which would at the same time allow direct deposits in magnetic cards enabled for the country's new foreign currency stores. The decision would mark a change in the deliveries of cash remittances to residents of the island, which are currently made in convertible pesos (CUC).

The alternative of changing the payment of remittances from CUC to dollars arose at the proposal of the Cuban government, after the opening for sales in dollars of some 80 stores selling household appliances, motorcycles and car parts throughout the national territory, last October. . The government measure has the urgent purpose of collecting hard currency in the midst of a liquidity crisis in the island's finances.

It is not clear if Western Union's decision derives from any regulation by the United States Department of the Treasury as part of the policy of financial siege of the Cuban regime. In October, The company announced that it was in the process of updating its operating systems to comply with the restrictions implemented by the Trump government on remittances and money transfers to the island.

Western Union, headquartered in Denver, Colorado, provides money transfer services to Cuba through more than 420 branches located in 168 municipalities in the country. Although the company does not report data on the value of its transactions, it is the largest operator of the $3.5 billion that annually arrive in remittances to recipients based on the island.

Fees imposed by Western Union range from 9 to 15 percent depending on delivery time and the payment method used for the transaction, while the Cuban government receives approximately 20 percent of the surcharge paid by customers.