EXCLUSIVE: How GAESA Laundered Billions in Remittances Sent by Cuban Emigrants
A Staggering Amount of Money, a Complex Network, and a Criminal Organization
HAVANA TIMES - For decades, a staggering amount of money has been laundered through a complex network of companies and schemes orchestrated by the General Company for Administering Assets (GAESA), led by General Luis Alberto López-Callejas. The scheme involves remittances sent by Cuban emigrants to their families back home, which are then routed through a network of companies and businesses.
$50 Billion in Cash: The Staggering Amount
According to investigations, since 1993, nearly $50 billion in cash has been routed through this network of companies, with 90% of it coming from the United States. This staggering amount has allowed GAESA to build a hotel empire, with over 110 hotels, including five-star and four-star facilities, and develop other businesses.
The Scheme: Using Remittances to Fuel Hotel Empire
The scheme involves using remittances sent by Cuban emigrants to purchase products at inflated prices at stores belonging to GAESA. These stores are only accessible through magnetic cards charged in foreign currency. The dollars remain in a bank account in a third country, while those on the island receive a devalued currency or an electronic dollar that can only be used at these stores.
A Novel Form of Dollarization
This novel form of dollarization has allowed GAESA to take another bite through currency exchange, as MLC cards are denominated in dollars. The company also prohibits physical deposits in dollars on these cards, forcing users to use other currencies in cash to recharge them.
Staggering Statistics: Hotel Empire and Tourism Sector Investment
The statistics are staggering:
- Between 2017 and 2019, 57 new hotels were built, with 25 five-star facilities and 32 four-star hotels. This represents an increase of 15,984 new rooms.
- During the same period, over $17 billion was invested in the tourism sector, despite hotel occupancy rates plummeting to 14.7% in 2020.
Crisis Amidst a Lucrative Business
This lucrative business has been carried out in the midst of a crisis that has brought Cuba to its knees, with a collapsing health system and widespread shortages of basic necessities like food and medicine.
Unprecedented in Latin America
GAESA’s money laundering operation is unprecedented in Latin America, where remittances are handled by state banks, private banks, private remittance companies, and cooperatives with full transparency and supervision. In contrast, the Cuban model for controlling and managing remittances is a “black box” in the hands of a criminal organization.
A Question of Justice
The US justice system has already issued an extradition order against Alex Saab for money laundering, related to his shady dealings with Nicolas Maduro’s regime. What difference is there between him and Luis Alberto López-Callejas?
Time for Action
In light of this evidence, it is time for the Biden Administration to take action and enforce the law on those breaking it just 90 miles away.
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