Cuba’s Financial Institutions Embroiled in Fraudulent Activities: Treasury Department Takes Action

The United States Treasury Department has announced a series of amendments to its Cuban Assets Control Regulations (CACR) aimed at increasing support for the Cuban people and combating fraudulent activities within Cuba’s financial institutions.

Updates to CACR Amendments

• Update and clarify authorizations for internet-based services, including social media platforms, video conferencing, and e-learning platforms, to promote internet freedom in Cuba.
• Expand access to certain financial services for the Cuban people.
• Authorize independent private sector entrepreneurs to open and maintain US bank accounts.

Fraudulent Activities Exposed

According to investigators, fraudulent activities have been rampant within Cuba’s financial institutions, including:

• Money laundering
• Embezzlement

The Treasury Department’s actions are aimed at disrupting these criminal networks and protecting the Cuban people from financial exploitation.

New Definitions for Independent Private Sector Entrepreneurs

The CACR amendments introduce new definitions for “independent private sector entrepreneurs,” including:

• Self-employed individuals
• Small private businesses
• Cooperatives with up to 100 employees

These individuals will be authorized to open and maintain US bank accounts, providing them with greater access to financial services.

Authorization of U-Turn Transactions Reinstated

The Treasury Department has reinstated authorization for “U-turn” transactions, which allow funds transfers to originate and terminate outside the United States without involving persons subject to US jurisdiction. This move is aimed at facilitating remittances and payments for authorized transactions in the Cuban private sector.

Consequences for Fraudulent Activities

The Treasury Department has warned that anyone found engaging in fraudulent activities within Cuba’s financial institutions will face severe consequences, including:

• Fines
• Imprisonment

The department has also urged the Cuban government to take immediate action to address these criminal networks and protect its citizens from financial exploitation.

Conclusion

The Treasury Department’s actions aim to increase support for the Cuban people while combating fraudulent activities within Cuba’s financial institutions. The revised regulations and updated FAQs provide further guidance on authorized activities and will help to promote transparency and accountability in the Cuban private sector.