Visa and Mastercard will halt payment processing in Cuba effective June 6, following a foreign bank's termination of its relationship with Cuban payment intermediary Fincimex. The Cuban central bank announced Wednesday that the action stems directly from Executive Order 14404, issued May 1 by US President Donald Trump, which expanded sanctions to authorize penalties on foreign entities supporting Cuba. The order broadens OFAC's authority to sanction non-Cuban persons and foreign financial institutions conducting significant transactions with blocked entities, cutting Cuba's access to Western card payment revenue.
Executive Order 14404 Expands Cuba Sanctions Regime
Executive Order 14404, issued May 1, broadened US sanctions on Cuba beyond the previous regime. The Office of Foreign Assets Control explains the order "broadens U.S. sanctions on Cuba to include authorizing sanctions on non-Cuban foreign persons for providing support to Cuba and on foreign financial institutions for conducting or facilitating significant transactions involving persons blocked." The Cuban central bank stated the foreign bank's decision "is directly related to Executive Order No. 14404 of May 1, issued by the President of the United States of America, Donald Trump, as part of his strategy of strangulation against the people of Cuba."
Foreign Bank Terminates Fincimex Relationship on June 6
The Central Bank of Cuba received communication from an undisclosed foreign bank that processed Visa and Mastercard transactions in Cuba, stating it would halt its commercial relationship with Fincimex. The central bank stated: "The foreign bank announced that, effective June 6---the date on which the measure imposed by the empire enters into force---it becomes unlawful and impossible to continue executing the agreements with the Cuban entity." The termination blocks Cuba from receiving income from goods and services transacted using international cards operated by Visa and Mastercard.
OFAC Designated Fincimex as Cuban Military Entity in 2020
In 2020, OFAC identified Fincimex, a Panama-based company handling remittances and foreign operations for the Cuban central bank, as an entity controlled by the Cuban military with strategic roles in the Cuban economy. The entity operates as a subsidiary of Grupo de Administración Empresarial S.A. (GAESA), an umbrella enterprise established by the Cuban regime to bypass Cuban Assets Control Regulations sanctions.
Tourists Must Use Mir Cards and UnionPay After June 6
The measure primarily affects tourists, who must rely on alternative payment methods while staying in Cuba. National prepaid cards, Mir Cards, and UnionPay cards will operate normally after June 6. Visa and Mastercard were recently invited to leave Russia, as Alla Bakina, Director of the Bank of Russia's National Payment System Department, stated "they no longer carry out or provide the functionality they always ensured" due to similar sanctions.
FAQ
When do Visa and Mastercard stop working in Cuba?
Visa and Mastercard payment processing in Cuba stops effective June 6, the date specified by the foreign bank terminating its Fincimex agreements under Executive Order 14404.
What payment methods work in Cuba after June 6?
National prepaid cards, Mir Cards, and UnionPay cards will operate normally in Cuba after June 6, according to the Cuban central bank's announcement.
Why did the foreign bank terminate Fincimex transactions?
The foreign bank cited Executive Order 14404, issued May 1 by President Trump, which makes it unlawful for foreign financial institutions to conduct significant transactions with OFAC-blocked entities like Fincimex.
