Western Union freezes Cuba money transfers after U.S. financial sanctions — Which were the reactions of Cuban families?
Western Union has indefinitely suspended money transfers to Cuba following the U.S. State Department's reinstatement of sanctions against Cuban military-controlled businesses, directly affecting many Cuban American families.
In a significant policy shift, Western Union has indefinitely suspended money transfer services to Cuba following the U.S. State Department's reinstatement of sanctions against Cuban military-controlled businesses. This decision directly impacts many Cuban American families who rely on remittances to support relatives on the island. The sanctions specifically target entities like FINCIMEX, the Havana-based financial company responsible for processing these money transfers.
Cuba criticizes the United States for Western Union's withdrawal from the island. Photo: www.americaeconomia.com.
Opinion of Cuban families
The suspension of Western Union's services poses immediate challenges for Cuban families who depend on remittances for essential needs. Many households rely on monthly financial support from relatives abroad to cover basic necessities such as food, medicine, and housing. The abrupt halt in these funds could exacerbate existing economic hardships on the island.
For Carolina Yarini, who regularly sends money to her aunts in Cuba, the decision is personal. "I feel bad for me and I feel bad for everybody else that sends money to their family," Yarini told CBS News Miami. Her relatives in Cuba typically receive at least $100 per month from family in South Florida, money that many rely on for basic necessities.
The move has elicited mixed reactions within the Cuban American community. While some individuals express concern over the financial strain it may place on their families in Cuba, others view it as a necessary measure to weaken the Cuban government's control over remittance funds. Western Union has stated that it will comply with all applicable laws and regulations in response to the updated Cuba Restricted List.
ALSO SEE: $2,000 Social Security deposit arrives on February 12: Find out if you qualify for the payment
Policy reversal and sanctions
The U.S. government's decision marks a reversal of previous policies that had eased restrictions on financial transactions with Cuba. By reinstating the Cuba Restricted List and targeting entities like FINCIMEX, the administration aims to cut off revenue streams to the Cuban military and pressure the government towards democratic reforms. Critics argue that such measures may disproportionately affect ordinary Cuban citizens rather than the intended government targets.
In response to the sanctions, Western Union has emphasized its commitment to adhering to U.S. laws and regulations. The company is currently working to refund customers with active money transfers in process. As of now, there is no specified timeline for the resumption of services to Cuba. The situation remains fluid, and stakeholders are closely monitoring developments to assess the long-term implications for remittance flows to the island.