Cuba Takes Step Forward in Fight Against Money Laundering and Terrorist Financing
Havana - Financial Action Task Force (FATF) Training for Cuban Officials
The Financial Action Task Force (FATF) has begun training Cuban officials on techniques to detect and prevent money laundering and terrorist financing operations. This move marks a significant step forward for Cuba in its efforts to improve its financial systems and reduce the risk of being used as a haven for illicit activities.
FATF Recommendations
Cuban authorities were trained on 40 different recommendations related to criminal procedures, legal classification, and preventive measures for financial transactions. The training also covered international cooperation and was designed to help Cuba meet its action plan to be removed from the FATF’s gray list. Some of the key recommendations include:
- Requiring greater transparency in financial transactions
- Identifying the final beneficiaries of companies
- Focusing on individuals who hold public office or are close to them
Challenges Implementing Measures
Cuba faces unique challenges in implementing these measures due to international sanctions imposed by the United States. Many financial transactions must be conducted secretly to avoid sanctions and fines from Washington.
FATF Evaluation Process
The FATF’s evaluation process is expected to conclude in December next year, but some experts believe that being on the gray list will not spare Cuba from US sanctions. The Obama administration has been particularly aggressive in enforcing sanctions on banks that operate with Cuban assets, resulting in over $2 billion in fines since 2009.
Suspended Consular Activities
In a separate development, Cuba’s diplomatic delegation in Washington has suspended its consular activities due to difficulties in opening a bank account in the United States, fearing reprisals from the Treasury Department.
Conclusion
The training course marks a significant step forward for Cuba in its efforts to improve its financial systems and reduce the risk of being used as a haven for illicit activities. However, Cuba faces unique challenges in implementing these measures due to international sanctions imposed by the United States.