Western Union Halts Money Transfers from the U.S. to Cuba

Western Union has indefinitely halted its money transfer services from the United States to Cuba, impacting thousands of Cuban families who rely heavily on these funds. The company cited the recent sanctions imposed by the Donald Trump administration as the reason for this decision. These sanctions included Orbit SA, the Cuban entity responsible for processing these transactions, on the Cuba Restricted List (CRL).

In a statement to the blog Café Fuerte, Western Union stated, "As a global entity, we must adhere to the laws and regulations of the countries we operate in. Due to changes in U.S. sanctions regulations, Western Union is compelled to indefinitely suspend its money transfer services from the U.S. to the island, effective immediately."

This suspension occurs amid escalating tensions between Washington and Havana. On January 20, President Trump reactivated the Cuba Restricted List by executive order, banning transactions with companies controlled by the Cuban military or the regime's repressive apparatus. Following this, Secretary of State Marco Rubio officially reinstated the CRL and added Orbit SA to the list.

Orbit SA was established on February 3, 2020, by a resolution of the Cuban government. However, its existence was not publicly acknowledged 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 offering payment services from overseas through its infrastructure.

Western Union is coordinating with its clients to reimburse the full amount of active transfers in its network. The company expressed deep regret for the situation and offered sincere apologies to its customers for any inconveniences caused. While no timeline has been specified for potentially resuming services, Western Union emphasized that it continues to explore options to restore the flow of remittances to the island.

The Role and Challenges of Western Union in Cuba

Western Union has played a pivotal role in facilitating remittances from the United States to Cuba, serving as a crucial source of income for numerous Cuban families. However, its operations in Cuba have been subject to frequent disruptions and resumptions due to various political and technical challenges.

In November 2020, the company suspended its services in Cuba after 21 years due to U.S. sanctions on its Cuban partner, FINCIMEX, an entity controlled by the military conglomerate GAESA. Later, in January 2023, Western Union resumed remittances to Cuba through a pilot program in South Florida, enabling transfers to bank accounts and debit cards at selected Cuban banks. This service expanded in March 2023 to cover the entire U.S., including digital sending options via its website and mobile app.

Nevertheless, in January 2024, the company once again suspended its services because of technical issues within the Cuban banking system, specifically with Orbit SA, which handles remittances on the island. Despite efforts to resolve these issues, the resumption of services was delayed, causing uncertainty among users.

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