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The Cuban regime described the recent suspension of remittances through Western Union as a “blow to countless families,” a measure attributed to the sanctions imposed by the administration of Donald Trump.
However, Cuban authorities refrained from denying the accusations linking Orbit S.A., the company responsible for processing these transfers, with the powerful military conglomerate GAESA.
Through a statement from the Ministry of Foreign Affairs (MINREX), the Cuban government held Washington responsible for the disruption of remittances, claiming it is an "irrational" decision within its hardline policy towards the island.
According to the text, the suspension is due to a "change in U.S. sanctions regulations," which has led Western Union to indefinitely cease its money transfer service to Cuba "with immediate effect."
The decision by the American company responds to the recent inclusion of Orbit S.A. in the List of Restricted Entities of Cuba, which prohibits direct financial transactions with the company, preventing its operation in the global financial system.
Orbit S.A. and its relationship with GAESA
The statement from the regime's foreign ministry did not provide explanations regarding the accusations that Orbit S.A. is a shell company controlled by the Business Administration Group S.A. (GAESA), the financial conglomerate of the Revolutionary Armed Forces (FAR).
This silence follows the same pattern observed with Fincimex, another entity linked to GAESA that in the past also managed remittances and was sanctioned by Washington.
Investigations have revealed that Orbit S.A. is not an independent entity, but rather is part of a strategy by the regime to continue controlling the flow of money sent from abroad.
In the past, when Fincimex was sanctioned, the Cuban government established new companies with similar structures to circumvent the restrictions imposed by the United States. Orbit S.A. appears to be the latest of these entities created for the same purpose.
It has been documented that Orbit S.A. operates under the supervision of CIMEX, a subsidiary of GAESA, and that its transactions are reported in the same financial reports as this military entity.
The company, presented as a civil remittance manager, is actually part of the financial network controlled by the Cuban military, allowing the regime to directly benefit from the income generated by money transfers from the Cuban diaspora.
Impact of sanctions and background
The inclusion of Orbit S.A. in the list of restricted entities was announced on January 31 by the U.S. Secretary of State, Marco Rubio, who stated that the company “acts for or on behalf of the Cuban military forces.”
The measure was part of a series of sanctions imposed following Trump's return to the White House on January 20, the day the Republican president reinstated restrictions that had been lifted by the administration of Joe Biden.
This decision has directly impacted the remittances sent from the United States, which are the main source of income for many Cuban families.
Western Union resumed its operations in Cuba in May 2023, after suspending them in 2020 due to sanctions imposed against Fincimex. However, following Trump's return to power, the American company has once again had to cease its services on the island.
The impact of this measure adds to other restrictions implemented during the Trump administration, including the reactivation of Title III of the Helms-Burton Act and the reincorporation of Cuba to the list of State Sponsors of Terrorism, a designation that remains in effect to this day.
The regime's control over remittances
The Cuban government's control over remittances has been a controversial topic for years. Independent studies revealed in 2023 that in the last 30 years Cuba has received more than 50 billion dollars in cash remittances and another 50 billion in consumer goods.
Through entities like Fincimex and now Orbit S.A., the regime has ensured that money sent by emigrants flows through official channels under its control, allowing it to access dollars and foreign currencies, which are essential for sustaining its economic apparatus.
With the suspension of Western Union and the inclusion of Orbit S.A. on the list of restricted entities, the Cuban government is left without an immediate alternative to channel remittances from the U.S., which could create greater economic pressures on the island.
However, the regime has previously demonstrated its ability to reorganize its financial structure and seek new methods to raise these funds, whether through alliances with intermediaries or by creating new shell companies.
For now, Cuban families are once again the main affected party, with no clear options to receive money from their relatives abroad and a regime that continues to prioritize absolute control over foreign currency income, offering no real solutions to its citizens.
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