Western Union ramps up US remittance service to Cuba

Western Union ramps up US remittance service to Cuba

US clients can send up to US$2,000 per day from over 4,400 retail locations in 50 states.

The test phase comes more than two years after Western Union left Cuba due to US sanctions. (File pic)
WASHINGTON:
Western Union said Thursday it was substantially expanding money transfer services to Cuba following a test phase more than two years after sanctions forced the US-based company to shut down operations on the communist-run island.

US customers are limited to sending a maximum of US$2,000 per day, but those transactions can now be made from more than 4,400 retail locations across 50 states, Western Union said in a statement.

It also made digital send service available from WesternUnion.com and the Western Union mobile app, it said.

During the test phase, the money can only be deposited as US dollars into three Cuban banks: Banco Popular de Ahorro, Banco Metropolitano S.A. and Banco de Credito y Comercio (Bandec).

Cuba is experiencing its worst economic crisis since the 1990s and has seen record levels of its citizens leaving the island in recent years.

Remittances from the US accounted for an estimated 6% of Cuba’s GDP until 2020, when then-president Donald Trump’s administration imposed sanctions on Fincimex, Western Union’s in-country affiliate, accusing it of aiding the Cuban military.

Cuba’s government in early 2022 set up a separate entity to handle money transfers from abroad, which the administration of Trump’s successor Joe Biden has since authorised to receive US funds.

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