El Presidente Posted October 28, 2020 Share Posted October 28, 2020 Cuban government announces closure of Western Union offices and suspension of remittances https://www.miamiherald.com/news/nation-world/world/americas/cuba/article246762646.html Link to comment Share on other sites More sharing options...
NSXCIGAR Posted October 28, 2020 Share Posted October 28, 2020 I guess that kills the dollar stores... Link to comment Share on other sites More sharing options...
Nino Posted October 28, 2020 Share Posted October 28, 2020 More than 400 Western Union offices in Cuba will close their doors due to new embargo regulations imposed by the Trump administration, Fincimex, the Cuban military company that controls remittances to Cuba, said Tuesday. But Western Union, which handles the lion’s share of the money sent to the island from the United States, said it continues looking for alternatives to maintain the service. The Trump administration published new embargo regulations Tuesday that prohibit the participation of companies controlled by the Cuban military in the processing of remittances. In a statement, Secretary of State Mike Pompeo said that the measure seeks to cut the Cuban military out of the business and cut off funds that flow to Cuban security agencies accused of human rights violations in Cuba and Venezuela. But in a statement posted on Facebook and republished in the Cuban Foreign Ministry’s website, Fincimex suggested that the Cuban government is unwilling to give in by transferring the remittance business to public, non-military entities. “Fincimex, as part of the Cuban financial system, is the entity that by sovereign decision of the Cuban government has been in charge of guaranteeing remittances to Cuba from the US, which will be totally interrupted” by the new measures, the statement said. https://www.miamiherald.com/news/nation-world/world/americas/cuba/article246762646.html Link to comment Share on other sites More sharing options...
Meklown Posted October 29, 2020 Share Posted October 29, 2020 9 hours ago, El Presidente said: Cuban government announces closure of Headline makes it sound like the Cubans are at fault .... but ... 9 hours ago, nino said: will close their doors due to new embargo regulations imposed by the Trump administration reading in detail, it's because of new US govt regulations. I'm not implying blame to any side - I just think this is pretty sad for the Cuban population. Also, headlines can so easily be twisted and misconstrued. 3 Link to comment Share on other sites More sharing options...
Ryan Posted October 29, 2020 Share Posted October 29, 2020 About three months ago, for the first time a Cuban friend asked me to explain cryptocurrency. I'm certainly not the most qualified but I had a stab at an explanation. Since then, a few other Cuban friends have asked about it. 1 Link to comment Share on other sites More sharing options...
Ryan Posted October 29, 2020 Share Posted October 29, 2020 11 hours ago, Meklown said: Headline makes it sound like the Cubans are at fault .... but ... reading in detail, it's because of new US govt regulations. Well, I suppose the Cuban government has said that they are not willing to transfer ownership to a non-military-owned Cuban public company. I'm not sure if such a thing, a "non-military-owned Cuban public company", actually exists. And even if it did, would an audit of such a company be believed by whoever it is who is trying to widen the effect of the embargo. 3 Link to comment Share on other sites More sharing options...
Popular Post El Presidente Posted October 29, 2020 Author Popular Post Share Posted October 29, 2020 They could be back in action as early as January. I see funds remittance to family and friends as a basic human right 6 1 Link to comment Share on other sites More sharing options...
La_Tigre Posted October 29, 2020 Share Posted October 29, 2020 28 minutes ago, El Presidente said: I see funds remittance to family and friends as a basic human right Agreed. This is a bridge too far. 1 Link to comment Share on other sites More sharing options...
MPS Posted October 29, 2020 Share Posted October 29, 2020 https://www.nytimes.com/2020/10/28/world/americas/cuba-western-union-remittances.html Cuba’s Communist government could still designate other institutions with countrywide coverage, like banks, to channel remittances in compliance with the new rules, analysts said. Link to comment Share on other sites More sharing options...
bates40 Posted October 29, 2020 Share Posted October 29, 2020 I hope even in the US has voted.... Link to comment Share on other sites More sharing options...
El Presidente Posted October 29, 2020 Author Share Posted October 29, 2020 50 minutes ago, miamipadronsmoker said: https://www.nytimes.com/2020/10/28/world/americas/cuba-western-union-remittances.html Cuba’s Communist government could still designate other institutions with countrywide coverage, like banks, to channel remittances in compliance with the new rules, analysts said. Who owns the Cuban banks and the military? One and the same. What is it meant to achieve? votes regardless of pain/stress inflicted on individuals who have done nothing wrong other to be born on a different side of the strait of florida. 2 Link to comment Share on other sites More sharing options...
MPS Posted October 29, 2020 Share Posted October 29, 2020 43 minutes ago, El Presidente said: Who owns the Cuban banks and the military? One and the same. What is it meant to achieve? votes regardless of pain/stress inflicted on individuals who have done nothing wrong other to be born on a different side of the strait of florida. I do think there may be a slight difference but I have no real knowledge of the Cuban banking system. The votes down here these days are more in favor of normalization. The Cuban vote has become younger and changed significantly. Whatever the motive it’s become clear that this administration does know how to financially punish countries it wants to. Link to comment Share on other sites More sharing options...
Ryan Posted October 29, 2020 Share Posted October 29, 2020 This situation isn't a joking matter but it reminds me of the old joke, that I've heard in Cuba too, of how Che Guevara became head of the Cuban National Bank, which he was for about 9 months. After the revolution, Fidel etc. are appointing new heads to the various ministries. When he gets to who is going to head up the bank, he asks the room, "Is anybody here an economist?". Che puts up his hand "I am!" and gets the job. Later Fidel says to Che, "I didn't know you were an economist?". Che replies, "Economist? I thought you said 'Communist!'" 3 Link to comment Share on other sites More sharing options...
Bram Smoker Posted October 29, 2020 Share Posted October 29, 2020 Money can still move to Cuba, likely via a traditional hawala system. This system is illegal in many countries but does result in more money in the hands of the friends and family because it prevents the government from collecting the ridiculous 10% remittance tax. I had no idea this tax was the second largest form of revenue for the Cuban government at $3B. 2 Link to comment Share on other sites More sharing options...
El Presidente Posted October 30, 2020 Author Share Posted October 30, 2020 4 hours ago, Bram Smoker said: Money can still move to Cuba, likely via a traditional hawala system. This system is illegal in many countries but does result in more money in the hands of the friends and family because it prevents the government from collecting the ridiculous 10% remittance tax. I had no idea this tax was the second largest form of revenue for the Cuban government at $3B. I am familiar with hawala in Pakistan but I can't see how it can work in Cuba as at some point it requires repatriation of funds or settlements of like debts via third parties. I have a mate in the Jewelry business who uses it extensively throughout middle east and pakistan/India. It takes great record keeping, tight family or longstanding commercial relationships to run smoothly. I had no idea it ran in central / south America on any significant scale. You learn something every day Link to comment Share on other sites More sharing options...
MrBirdman Posted October 30, 2020 Share Posted October 30, 2020 What’s strange about these US actions isn’t their timing - like most US sanctions related to Cuba in an election years their aim is entirely to curry favor in the swing state of Florida. But I can’t see how Cuban-Americans will rally around such a drastic move, when so many already put the welfare of their countrymen above their opposition to the Communist Gov’t when it comes to remittances to family and friends. 1 Link to comment Share on other sites More sharing options...
Bram Smoker Posted October 30, 2020 Share Posted October 30, 2020 Hawala runs everywhere. Full disclosure i was corp counsel for Western Union and did contract negotiations including some of their Caribbean dealings. I still work in the money remittance sector. There are many ways to move money and settle debts with one of the easiest being gift cards (iTunes, prepaid, and the like). Few limit use of funds to the countries in which they are loaded. The physical cards never move, only the information, where it is placed on a new physical card or used electronically. Settlement no longer requires physically meeting or providing cash. 3 Link to comment Share on other sites More sharing options...
JohnnyO Posted October 30, 2020 Share Posted October 30, 2020 16 minutes ago, Bram Smoker said: Hawala runs everywhere. Full disclosure i was corp counsel for Western Union and did contract negotiations including some of their Caribbean dealings. I still work in the money remittance sector. There are many ways to move money and settle debts with one of the easiest being gift cards (iTunes, prepaid, and the like). Few limit use of funds to the countries in which they are loaded. The physical cards never move, only the information, where it is placed on a new physical card or used electronically. Settlement no longer requires physically meeting or providing cash. Gift cards in Cuba are an unlikely scenario. Hell, no one wants to accept them in Miami. If it were ever to happen it would be only with the Cuban government orchestrating the whole thing. Money can be sent to Cuba, but the payout will be in CUC as there are no USD's circulating. About 15 years+ (before Western Union) some agencies in Miami were charging 24% to send USD's to Cuba. You would have to give $124 US to the agency for your family member to receive $100 US. More informal brokers were charging 10-15%. Right now its 1:1 but the payout is in CUC's. So there is quite a bit of money to be made on the exchange rates. John 1 Link to comment Share on other sites More sharing options...
Bram Smoker Posted October 30, 2020 Share Posted October 30, 2020 15 minutes ago, JohnnyO said: Gift cards in Cuba are an unlikely scenario. Hell, no one wants to accept them in Miami. If it were ever to happen it would be only with the Cuban government orchestrating the whole thing. Money can be sent to Cuba, but the payout will be in CUC as there are no USD's circulating. About 15 years+ (before Western Union) some agencies in Miami were charging 24% to send USD's to Cuba. You would have to give $124 US to the agency for your family member to receive $100 US. More informal brokers were charging 10-15%. Right now its 1:1 but the payout is in CUC's. So there is quite a bit of money to be made on the exchange rates. John Happy to have private discussions on how the movement of funds is orchestrated but hesitant to provide too much detail on public forms. Link to comment Share on other sites More sharing options...
Nino Posted November 14, 2020 Share Posted November 14, 2020 Western Union closes its Cuban branches November 23rd at 6 PM : https://www.14ymedio.com/cuba/Western-Union-oficinas-Cuba-noviembre_0_2984701512.html Western Union cerrará sus oficinas en Cuba el 23 de noviembre a las 6 de la tarde El pulso entre Washington y La Habana lleva a la compañía de remesas a anunciar el cese de sus actividades en la Isla 14ymedio, La Habana | Noviembre 13, 2020 Link to comment Share on other sites More sharing options...
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