Cuban leader Miguel Díaz-Canel dismissed on Tuesday claims that military forces are in charge of remittance agencies on the island, labeling these assertions as "falsehoods" perpetrated by the United States to justify its restrictions on money transfers to Cuba. However, he refrained from directly addressing the financial entities associated with Grupo de Administración Empresarial S.A. (GAESA), the military conglomerate overseeing much of Cuba's economy.
In an interview posted on the YouTube channel Presidencia Cuba during the Patria Colloquium, Díaz-Canel tackled a question about a potential halt in remittances from the U.S. He accused U.S. Secretary of State Marco Rubio of colluding with the "anti-Cuban mafia in Miami" to promote measures against the island.
"We must first recognize that Marco Rubio, a gray figure for us within the current U.S. administration, is deeply aligned with the Miami anti-Cuban mafia. He has been the architect of these measures, pushing for the current administration to tighten the blockade," Díaz-Canel declared.
The Cuban leader asserted that his administration is ready to counter this "intensification" with "the Cuban people's talent, intelligence, innovation, and considerable effort," yet acknowledged the severe impact these measures have on the populace, particularly on those reliant on funds from family abroad.
Impact on Cuban Families
Díaz-Canel emphasized that the remittance restrictions are a "severe blow" to many Cuban families, especially amid the island's severe economic crisis. "The remittance represents a significant loss to the potential income of Cuban families with members in the United States who have historically sent money as assistance," he stated, noting that this practice is common worldwide.
He compared the situation in Cuba to other Latin American countries where remittances are a crucial income source but overlooked Cuba's unique financial system, where the state exerts stringent control over incoming foreign currency through its enterprises.
Contradictions and Accusations
Díaz-Canel questioned the inconsistencies in U.S. policy: "There's a contradiction here. On one side, you tighten the blockade, and on the other, you remove remittances that help families improve their economic status. Yet, you claim your policies aim to benefit the Cuban people. How does that add up?"
He also dismissed the notion that remittances are processed through military-controlled entities, stating, "The excuse is that these are handled by an organization supposedly in military hands, which is another lie."
Despite advocating for the benefits of remittances for families, Díaz-Canel avoided delving into the state's role in channeling this money and the advantages it presents for the government apparatus. He remarked that remittances primarily benefit Cuban families, who spend the money domestically, indirectly generating state revenue through services or consumption.
Investigative Findings
Contrary to Díaz-Canel's assertions, various investigations tell a different story. A recent Miami Herald report revealed that Orbit S.A., the company managing remittances from the U.S. to Cuba, is controlled by GAESA. This powerful military conglomerate dominates much of the dollarized Cuban economy.
This finding contradicts both the Cuban regime's statements and the stance of President Joe Biden's administration, which in 2022 approved an agreement with Orbit, contingent upon it having no military ties. According to the American media, the 2024 study was based on internal CIMEX documents, a GAESA subsidiary, and insider testimonies.
The investigation illustrated how the Cuban government allegedly established a civilian front to circumvent sanctions imposed by the Trump administration in 2020, which halted Fincimex's operations, a state enterprise previously managing remittances and part of the military's business network.
Heightened U.S. Response
Under the renewed Trump administration, the U.S. stance toward the Cuban regime has hardened once more. In February, the U.S. Department of State sanctioned Orbit S.A. for operating under GAESA's control. This action is part of a series of measures by the White House early in Trump’s new term to increase economic pressure on the regime, as stated in an official communiqué.
With this new sanction, Washington reiterates its policy of not allowing U.S. remittances to Cuba to bolster the military apparatus controlling the most profitable sectors of the island's economy. Recently, Cuban-American Congressman Carlos Giménez issued a stern warning to those still traveling to or sending money to Cuba, a country labeled as a state sponsor of international terrorism.
In a social media post, Giménez warned, "Those traveling and sending remittances to the murderous regime in Cuba do so at their own risk. Don't complain later. You've been warned."
Insights on Cuban Remittance Policies
Why does the U.S. impose restrictions on remittances to Cuba?
The U.S. imposes restrictions to prevent funds from strengthening Cuba's military-controlled economy, aiming to pressure the regime for political reforms.
What role does GAESA play in Cuba's economy?
GAESA, a military conglomerate, controls significant portions of Cuba's economy, particularly sectors dealing with foreign currency and tourism.
How do remittance restrictions affect Cuban families?
Restrictions limit the financial support Cuban families receive from abroad, exacerbating economic hardships amid the island's ongoing crisis.