American banks would refuse to keep money from Cuban MSMEs. Because?

Since the end of May, with the new facilities from the United States government, owners of Cuban private companies (MSMEs) can open accounts in American banks and store or invest their money there. But American financial institutions may refuse. We tell you.

American banks, such as Bank of America, Citigroup, Wells Fargo, JPMorgan Chase & Co or US Bank, may refuse to keep the money of Cuban MSMEs, for several reasons, according to experts, one of them is that Cuba is still in the list of countries sponsoring terrorism, and restrictions on these nations also affect their nationals.

According to Carlos Saladrigas, one of the founders of the Cuba Study Group, in conversation with Martí Noticias, in Miami, “one thing is that the law allows it and another thing is that the banks want it.”

Banks in the United States must comply with a series of regulations imposed by the government. Among these regulations is the restriction of carrying out transactions with Cuban entities, because Cuba is on the list of countries that sponsor terrorism. So?

“The Cuba issue continues to be very thorny because the island continues to be on the list of countries that sponsor terrorism,” he stressed.

Money from Cuban MSMEs in American banks

For the money from Cuban MSMEs to enter American banks, and for private individuals on the island to be able to invest or access credit in American dollars, the measures announced with the Joe Biden administration are not enough.

The Cuban government is still examining whether to approve them or not, because it described them as “limited” and “interferenceist.” And secondly, there is this issue of the list of terrorists and the denial of access by American banks on these issues, which are very delicate.

“This does not mean that tomorrow a Cuban can enter any bank and open an account, that is not going to make it so easy. They have to know who you are, where your money comes from (…) there are banking institutions that are interested and that see possibilities of making money in a legal and clean way,” Saladrigas details.

Despite the obstacles that lie ahead, the expert described the announced flexibilities of the United States as positive, including bank accounts, more open access to the Internet, etc.