Canadian financial firm linked to the Castro family authorized to provide services to Cuban SMEs

The Central Bank of Cuba authorized this Thursday, through Resolution 28/2025, the establishment on the Island of the financial entity Novabank S.A., described as a "corporate bank with totally foreign capital." This is the first of its kind authorized in the country to serve small and medium-sized enterprises (mipymes).

In the regulations, two entities are listed as "owners" of the bank: Les Fonds Generation Nova Inc. and Groupe Novinvest Inc., recently established and connected to the business of the couple Mario and Nancy Lussier: Terracam Équipement International, as noted by economist Pedro Monreal.

The independent media Cubanet, in a report published this Friday, reveals that both entities were created in May 2022 by the couple linked to the Castro family. The two companies are registered in Quebec and share the same address: 1341 B, rue Principale, Sainte-Julie.

The extraordinary edition of the Official Gazette indicates that Novabank will provide services to legal entities, "banks and financial entities, joint ventures, companies involved in international economic association contracts, Cuban companies with foreign capital, foreign companies, state-owned enterprises, entities in the non-state sector with legal personality (cooperatives and micro, small, and medium-sized enterprises), diplomatic missions, and international organizations."

Novabank will be responsible for operations such as opening accounts and maintaining deposits in foreign currency, providing services related to banking operations, with smooth, secure, and protected payments; conducting financial transactions; receiving and granting loans or other forms of credit or financing and offering payment services associated with the financing provided.

The Lussier Group, which is now launching Novabank, has been operating in Cuba for nearly 30 years through Terracam and has Nancy Lussier as its vice president, who has also been the president of the Canada-Cuba Chamber of Commerce and Industry (CCICC) since 2016, and is a "staunch defender of the Castros," highlighted Cubanet.

The administrative figure has been, in fact, a key player in the creation of the so-called Solidarity Groups with Cuba in Quebec and founded Rebus Pay, a remittance company to Cuba, years ago. To this end, she signed a contract with Orbit S.A. in 2023 to establish a digital wallet.

For the above reasons, and as presumed by the independent medium, Novabank S.A. could serve as a front for Scotiabank in an attempt to circumvent sanctions imposed by U.S. banks.

In this regard, they emphasize that Carlo de Benedictis, the main representative of this banking entity in Cuba for many years, is also a member of the Canada-Cuba Chamber of Commerce and Industry (CCICC) and part of its Board of Directors.

The new bank

Until 2022, the Lussier Group had focused its business in Cuba in the area of transportation equipment, as Pedro Monreal recalls.

With that background, it is demonstrated that Novabank is a newcomer in the banking sector, "without large-scale financial backing, though with experience in business with Cuban state entities and with access to the Cuban government".

Although the regime celebrates the new entity, the economist urges not to lose sight of the fact that the Canadian company is a mechanism to mitigate the state liquidity crisis in foreign currency.

"In the realm of possible foreign currency loans to small and medium-sized enterprises, there would be different types of credit risks (default risk, exposure risk, collateral risk). Would there be a viable mechanism for collateral or other types of guarantees?” Monreal asks.

In 2018, Nancy Lussier, in her capacity as president of the Canada-Cuba Chamber of Commerce and Industry, had remarked that the Island was the most important trading market in the Caribbean for the maple country.

"We have seen a growing interest from Canadian entrepreneurs in the Cuban market, which is why we provide training for companies and manage trade missions to capitalize on these opportunities," he said.

However, in the current context of liquidity crisis, the Cuban government has withheld foreign currency from several foreign companies, leading to questions about the true intent behind the opening of the new bank in Cuba.

As an alternative for foreign companies, the government proposed the opening of a new type of foreign currency bank accounts within the island, but these accounts only accept new capital.

This implies that companies cannot transfer money from frozen accounts; only transfers from abroad are accepted. Some companies are already using these accounts, especially those linked to GAESA.

Frequently Asked Questions about Novabank S.A.'s Arrival in Cuba and Its Impact on Mipymes