Western Union has officially closed all its 407 locations in Cuba, an action which has left thousands of remittance-dependent Cubans in grave distress.
Already, these individuals are clinging to the hope of finding new means, even though less reliable, of getting money from family overseas for their daily livelihoods.
The closure of Western Union in Cuba was triggered by a raft of additional sanctions imposed on the communist-led Caribbean island by the Trump administration ahead of the November 3 elections as a means of courting conservative Cuban-American voters in Florida.
Western Union has been operating in Cuba for more than 20 years. Many Cubans were taken by surprise by the closure on Monday, even though it was announced as imminent in late October.
Cuba receives billions of dollars a year in remittances with economists estimating that roughly half comes from the United States and 20 per cent of the overall total comes through Western Union. Cuba’s ruling communist party official newspaper, Granma, reported yesterday that the closures of Western Union’s offices across the island hit the safest way to send money to Cuba for those unable to travel there or refuse to rely on third party entities.
TRUMP SANCTIONS IMPACTING CUBA
The Donald Trump administration has hit Cuba with more than 200 measures in recent years, including limiting trips, barring cruise ship visits and limiting remittances to US$1,000 per person per quarter. These sanctions have dealt a severe blow for many Cubans, having had the country’s tourism industry, one of its main income earners, devastated by the global pandemic.
The result of the sanctions has been long lines for food and fuel and related shortages throughout the year. One of the newest sanctions imposed by the Trump administration banned Western Union’s Cuban partner company, Fincimex, from handling remittances.
This was done because Fincimex has close ties to the Cuban military-run company, Gaesa. The Cuban government has refused to use a finance company not associated with its military, leaving Western Union without a partner to bring remittances to the island.
NO CHOICE BUT TO CLOSE OFFICES
Several efforts and strategies employed by Western Union to find a way around the sanctions have not reaped much benefit, meaning the remittance company has no option but to close all its offices in Cuba. The latest sanctions were imposed on Cuba by the American government, which has accused Cuba’s military of supporting Venezuela and systematically violating human rights.
Noted Cuban economist, Omar Everleny Pérez has stated that family and friends abroad can still use other banks, agencies and small informal businesses to send money to individuals in Cuba. In addition, they can relay money to Cuba through visitors travelling to the island through Havana’s airport, which reopened this month.
They can even use crypto-currency, Pérez noted.
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