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The U.S. State Department sanctioned the company Orbit S.A. this Friday, a remittance processing firm for Cuba under the control of GAESA, the business conglomerate of the Cuban Revolutionary Armed Forces (FAR).
This measure is part of a series of actions taken by the administration of Donald Trump in the early days of his term to toughen U.S. policy towards the Cuban regime, the Department of State reported in a statement.
Orbit S.A. has been added to the updated "Cuba Restricted List" by the Department of State, which prohibits transactions with companies linked to the Cuban military, intelligence, and state security apparatus.
The U.S. government argued that this sanction aims to prevent resources from flowing to the sectors that "oppress and surveil" the Cuban people, while also controlling large segments of the island's economy.
This sanction is part of a set of decisions made by President Trump to reverse changes in the policy towards Cuba that were implemented by the previous administration.
From his first day in office, the U.S. president reaffirmed his stance of keeping Cuba on the list of state sponsors of terrorism, arguing that the Cuban regime continues to support terrorist activities on an international level.
Additionally, the right of American citizens to file private lawsuits for trafficked and confiscated properties by the Cuban regime has been restored under the LIBERTY Act, also known as Title III of the Helms-Burton Act.
The Secretary of State, Marco Rubio, explained that the U.S. Department of State has reiterated its strong commitment to human rights and the fundamental freedoms of the Cuban people.
The statement also called for the immediate release of all political prisoners unjustly detained on the island.
It also condemned Cuba's malevolent interference in Latin America and other regions of the world.
It also adds that the U.S. Embassy in Havana is in contact with the families of the political prisoners and Cuban dissidents.
ORBIT S.A., an economic lifeline for GAESA
In December 2024, an investigation by the Miami Herald revealed that Orbit S.A., the company currently processing remittances sent from the United States to Cuba, is controlled by the Business Administration Group S.A. (GAESA), the all-powerful military conglomerate that dominates the dollarized economy of the island.
This finding contradicts the claims of the Cuban regime and the Biden administration, which authorized an agreement with Orbit in 2022 on the condition that it had no military ties.
The study, based on secret documents from CIMEX— a subsidiary of GAESA— and testimonies from internal sources, demonstrated how the Cuban government created a civilian front to circumvent the sanctions imposed by the Trump administration in 2020.
Orbit S.A. was presented as an independent company under the jurisdiction of the Ministry of Commerce and Foreign Investment, but the evidence reviewed by the Miami Herald shows otherwise. According to the documents analyzed by that outlet, Orbit operates as an appendage of CIMEX, which in turn reports directly to GAESA.
The documents analyzed by the Miami Herald reveal that CIMEX oversees all operations of Orbit, including the money transfers processed by Western Union and Miami-based remittance agencies such as VaCuba and Cubamax.
Orbit uses CIMEX's financial infrastructure to carry out these transactions, and the data from both companies appears in the same monthly reports that CIMEX prepares for GAESA's top executives.
Frequently Asked Questions about U.S. Sanctions on Orbit S.A. and the Cuban Regime
Why did the U.S. sanction Orbit S.A.?
The U.S. has sanctioned Orbit S.A. for being a company controlled by GAESA, the Cuban military conglomerate, and to prevent financial resources from flowing into sectors that "oppress and surveil" the Cuban people. The sanction is part of an effort to tighten policy towards the Cuban regime and economically isolate its military structures.
What does the inclusion of Orbit S.A. in the restricted list mean for Cuba?
The inclusion of Orbit S.A. on the restricted list of the U.S. Department of State prohibits financial transactions with the company, which limits its operations and affects the flow of remittances to Cuba. This measure aims to undermine the economic capacity of the Cuban military forces that control strategic sectors of the island's economy.
How has the Cuban regime reacted to the sanctions from the U.S.?
The Cuban regime described the U.S. measure as part of an "economic war" and accused the Trump administration of acting with arrogance. The Cuban government argues that these sanctions exacerbate the economic crisis on the island and have intensified emigration to the United States, accusations it uses to deflect attention from its internal inefficiencies.
What role does GAESA play in the Cuban economy?
GAESA is a military conglomerate that controls large sectors of the Cuban economy, including the processing of remittances through companies like Orbit S.A. This control allows it to manage foreign currency revenues opaquely, using these funds to finance projects that benefit the regime rather than the Cuban people.
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