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The recent announcement from the United States government regarding the inclusion of Orbit S.A. in the Restricted Entities List has raised concerns among Cubans who rely on remittances sent from abroad.
Orbit S.A., a relatively unknown company until 2022, emerged as a viable alternative for remittance processing following the exit of Fincimex S.A. from the business due to sanctions imposed by the U.S. Department of the Treasury.
Now, with the reactivation of Title III of the Helms-Burton Act and the expansion of the list of restricted Cuban entities implemented by the Trump administration, the future of remittances to Cuba is once again in question.
The origin of Orbit S.A. and its role in remittances
Orbit S.A. was founded on February 3, 2020, but it was not until 2022 that it gained prominence after receiving a license from the Central Bank of Cuba (BCC) to operate as a "non-banking financial institution".
This license enabled her to manage international transfers and provide payment services on the island, positioning her as a potential successor to Fincimex S.A. in the remittances business.
The company established its headquarters in Miramar, in a building adjacent to the Fincimex offices, according to an extensive article by Proyecto Inventario that investigated the connections between the two entities, highlighting the link of Orbit. S.A. with the Business Administration Group S.A. (GAESA), which is under the control of the military and the ruling elite of the Cuban regime.
With the support of the BCC and the absence of international sanctions at that time, Orbit reached an agreement with the American company Va-Cuba INC., which allowed it to receive remittances from the U.S. through a license granted by the Office of Foreign Assets Control (OFAC).
The role of Orbit S.A. following the sanctions on Fincimex
Until November 2020, Fincimex S.A., an entity controlled by GAESA, was the primary remittance manager on the island. However, its inclusion on the "Restricted Entities List" by the U.S. forced the suspension of services with U.S. companies, including Western Union, which had been the most commonly used way to send money to Cuba for decades.
The emergence of Orbit S.A. was seen as a temporary solution to the remittance problem. Although it lacked the infrastructure of Fincimex, Orbit obtained a license from the BCC and began operating with different platforms to facilitate transfers from Europe and Canada.
The impact of including Orbit on the list of restricted entities
On January 31, 2025, the U.S. State Department announced that Orbit S.A. would be added to the "Restricted Entities List."
This decision was based on reports linking the company to the financial apparatus of the Cuban regime and GAESA, a military entity that controls a large part of the island's economy.
This measure will have significant consequences on the flow of remittances to Cuba
- Suspension of transactions with the U.S.: Orbit S.A. will lose its ability to process remittances from the U.S. through companies like Va-Cuba INC., impacting the regime's mechanism of extortion and price abuse on thousands of Cuban families who rely on this income.
- Search for alternatives: The measure could force the Cuban regime to seek new options for processing remittances, potentially through digital platforms, cryptocurrencies, or agreements with allied countries.
- Increased informality in money transfers: With the disappearance of an official channel for remittances from the U.S., it is likely that transfers through informal means such as couriers, P2P applications, and transfers to accounts in third countries will increase.
The inclusion of Orbit S.A. on the Restricted Entities List represents a new blow to the remittance system controlled by the Cuban regime.
A study published in September 2023 by the organization Cuba Siglo XXI indicated that exiles sent a total of $52,251.99 million in cash to Cuba over the last 30 years analyzed.
Remittances are a vital source of income for many Cuban families and play a significant role in the national economy. Below are some relevant data points:
- Percentage of households receiving remittances: According to the VI Study on Social Rights (2023), cited by the independent media 14ymedio, 27% of Cuban households received some type of family remittance from abroad in the summer of 2023.
- Annual remittance amount: Estimates from the organization Diálogo Interamericano, cited by CNN, indicate that, in 2019, Cuba received remittances worth more than 2.055 billion dollars, which represented approximately 2% of the Gross Domestic Product (GDP) of the country that year.
- Peso en el PIB: Some sources, such as Havana Times, indicate that cash remittances account for around 25% of Cuba's GDP. If remittances in goods are included, the total could reach up to one-third of the GDP.
It is important to note that the figures may vary depending on the source and the year of reference, and that the Cuban government does not regularly publish official data on remittances.
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