Western Union halts remittance transfers from the U.S. to Cuba

Western Union announced the indefinite suspension of remittance transfers from the United States to Cuba, affecting thousands of Cuban families who rely on this income.

The company attributed this decision to the recent sanctions imposed by the Donald Trump administration, which included Orbit SA, the Cuban entity responsible for processing transactions, on the Cuba Restricted List (CRL).

In a statement sent to the blog Café Fuerte, Western Union expressed: "As a global company, we are also required to comply with the laws and regulations established in the countries where we operate. Due to a change in U.S. sanctions regulations, Western Union is compelled to indefinitely suspend its money transfer service between the United States and the island, effective immediately."

The suspension of remittance shipments occurs in a context of increasing tensions between Washington and Havana.

On January 20, President Trump reactivated the Restricted List for Cuba by executive order, prohibiting transactions with companies under the control of the Armed Forces or the repressive apparatus of the Cuban regime.

Subsequently, the Secretary of State, Marco Rubio officially approved the restoration of the CRL and included Orbit SA in the list.

Orbit SA was established on February 3, 2020, through a resolution from the Cuban government. However, its existence was not made public until February 2022, when the Central Bank of Cuba announced that the company was responsible for managing and processing international transfers from abroad to Cuba, as well as providing payment services from outside through its infrastructure.

Western Union reported that it is working with its customers to refund the total amount of active transfers in its network. Additionally, the company expressed deep regret over this situation and offered sincere apologies to its customers for the inconveniences caused.

Similarly, the company did not specify a date for the possible resumption of the service, but reiterated that it continues to evaluate options to restore the flow of remittances to the island.

Western Union has played a crucial role in sending remittances from the United States to Cuba, serving as a vital source of income for many Cuban families. However, its operations on the island have been marked by interruptions and resumptions due to various political and technical factors.

In November 2020, the company suspended its services in Cuba after 21 years of operations, as a result of sanctions imposed by the United States on its partner on the island, FINCIMEX, an entity controlled by the military conglomerate GAESA.

Later, in January 2023, Western Union resumed the sending of remittances to Cuba through a pilot program in South Florida, allowing transfers to bank accounts and debit cards at selected Cuban banks.

This service was expanded in March 2023 to cover the entire territory of the United States, including digital shipping options through its website and mobile app.

However, in January 2024, the company suspended its services again due to technical issues in the Cuban banking system, specifically with Orbit SA, the entity responsible for processing remittances on the island.

Despite efforts to resolve these issues, the resumption of service was delayed, creating uncertainty among users.

In May 2024, Western Union announced the resumption of its remittance services to Cuba, in coordination with Orbit SA, allowing once again the transfer of money from the United States to bank accounts and debit cards on the island.

Frequently Asked Questions about the Suspension of Western Union Remittances to Cuba