Pinar del Río

Cuban Authorities Crack Down on Informal remittance Networks

Cuban authorities, through the Ministry ⁢of the Interior (MININT), have⁢ announced a series ⁣of investigations and actions​ targeting individuals and networks facilitating the transfer​ of remittances‍ outside⁢ of official ⁣state channels. These operations, spanning multiple provinces including Villa Clara, Sancti Spíritus,⁢ Las Tunas, Pinar del ​Río, and⁤ Havana’s 10 ⁢de ​Octubre municipality, reveal a complex system leveraging non-state forms of management – specifically Micro, Small⁤ and Medium Enterprises ⁤(MSMEs) – to circumvent official financial institutions.

The investigations‍ detail a scheme​ where operators‍ negotiated with MSMEs to pay foreign suppliers directly from abroad.the equivalent value in Cuban ⁣pesos ​was then distributed to remittance recipients‍ within Cuba,⁤ bypassing state-controlled banks and exchange houses. This involved organized structures with managers overseeing the collection​ of pesos from MSMEs and distributing funds​ through informal networks extending⁢ across provinces.Individuals in Sancti Spíritus and Las Tunas were identified as key‌ players ⁢in transferring and delivering cash within these subnetworks.

Authorities allege these operations generated⁤ “million-dollar enrichments”⁤ through commissions​ ranging ​from 8 to⁤ 12% on both​ shipment⁢ values and the final price of goods sold by individuals.⁤ MININT asserts these⁢ practices violate‍ laws ⁣in both Cuba⁣ and the sending countries, ⁢negatively impacting economic growth ⁢and the daily ​lives of citizens.

While MININT stated this is ‍not​ a direct attack on non-state forms of management, they⁢ acknowledged the growth of the⁣ private sector‌ has created opportunities for operations outside the⁣ state banking ⁢system. The government framed these schemes⁣ as⁢ a form of “economic war” imposed ⁤by the United States, and confirmed criminal proceedings ⁤have been initiated against ten individuals, with some currently held under provisional arrest.

A separate investigation in pinar del Río uncovered an individual operating an informal currency exchange ⁤from their home, assisted by collaborators handling money transport and ‍social‍ media promotion. Another network was ‌detected in Havana, directly linked⁣ to MSMEs requiring​ significant⁣ amounts of both Cuban pesos‌ and⁤ foreign currency to maintain operations.

MININT ⁣reports over one hundred similar investigations are currently ⁤underway across the country, coinciding with a period of economic, energy, and epidemiological crisis exacerbated by Hurricane Melissa. The government maintains that dismantling these‌ networks is crucial‌ for “preserving order and ⁤tranquility” and ensuring⁣ financial flows benefit “the social and common interest.”

According to official figures, less than 10% of remittances currently reach Cuba through state channels. Though,‌ critics argue the proliferation of these informal networks is a direct consequence of the failings of ‌the ‌cuban banking system – including delays and a lack of public⁤ trust ⁣- ‌forcing families ⁤to seek‍ option methods for receiving funds. The government continues ⁣to portray those facilitating‍ these‌ transfers abroad ⁢as exploiting remittances sent by emigrants, ⁣while many‌ Cubans view the crackdown as an attempt to regain control of ‌a market lost due to state inefficiencies.