The Biden administration allows Cuban entrepreneurs to open accounts in US banks.

The United States will allow Cuban private sector entrepreneurs to access accounts in U.S. banks and carry out financial transactions from third countries (U-turn transactions) to send remittances and other payments to individuals on the island.

This decision is part of a set of measures announced by the Office of Foreign Assets Control (OFAC) of the Department of the Treasury, aimed at expanding the Biden administration's policy in support of the Cuban people and Micro, Small, and Medium Enterprises (MSMEs), according to a document published in the Federal Register.

The change reverses a regulation from the administration of Donald Trump that prohibited US banks from processing transactions related to Cuba through banks in third countries. This could allow companies like Western Union to restore their services from their international offices.

U-turn transactions will allow banking institutions to process fund transfers involving Cuba, as long as they originate and terminate outside of the U.S. and do not involve individuals subject to U.S. jurisdiction.

This measure will improve the flow of remittances and payments for authorized transactions in the Cuban private sector, providing economic support to entrepreneurs and their businesses, according to OFAC.

In Cuba, there are more than 12,000 MSMEs since their authorization in 2021, some in collaboration with the state sector.

The measures approved by OFAC will come into effect in a month and include the authorization of cloud-based services to facilitate internet communication and the expansion of services for the installation and repair of telecommunications equipment. In addition, the export and reexport of Cuban-origin software and mobile applications from the United States to third countries will be allowed.

In January, the US government had ruled out opening its banking system to Cuban SMEs, but now it has made a significant modification in the redefinition of the term "independent entrepreneurs in the private sector," excluding banned Cuban government officials and members of the Cuban Communist Party.

This new definition encompasses not only self-employed workers, but also cooperatives and other private companies with up to 100 employees.