Starting June 6, Visa and Mastercard will cease to operate in Cuba. The reason is new U.S. sanctions that led a foreign bank to refuse cooperation with the Cuban financial company that facilitated payments.
Cuba is losing one of its main international payment systems. The country's central bank announced that starting June 6, transactions using Visa and Mastercard will no longer be processed through the existing settlement scheme.
The reason is the decision of a foreign bank that serviced these transactions for the Cuban state financial company Fincimex. The name of the bank is not officially disclosed; however, Cuban authorities state that the decision is related to new U.S. sanctions.
The conglomerate GAESA, linked to the Cuban armed forces and which includes Fincimex, has come under restrictions. Washington has warned that foreign banks and companies continuing to cooperate with organizations on the sanctions list may themselves face restrictive measures. As a result, the foreign financial partner notified the Cuban side of the termination of cooperation.
For tourists and foreign visitors, this means significant changes in familiar payment methods. After the new rules come into effect, transactions in foreign currency in Cuba will primarily be possible in cash. Local bank cards will also continue to operate.
Additionally, authorities reported that payment options using Russian Mir cards and the Chinese payment system UnionPay will remain available on the island.
The new sanctions are already impacting not only the financial sector. Several international hotel operators from Spain, Canada, and Indonesia previously announced plans to cease cooperation on properties managed jointly with companies linked to GAESA.
For Cuba, this is another blow to the tourism sector, which remains one of the most important sources of foreign currency income.
The changes may be particularly sensitive for foreign tourists accustomed to using international bank cards to pay for hotels, restaurants, and other services.
Thus, the new U.S. sanctions are beginning to affect not only state structures in Cuba but also the everyday financial lives of foreign guests and businesses on the island.
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