MIAMI –
Western Union said on Wednesday it had resumed money transfer services between the US and Cuba in a limited capacity after two years of a critical economic lifeline being cut off.
The company stopped money transfers in 2020 after President Donald Trump tightened old US restrictions on Cuba. The Biden administration has relaxed some of the Trump-era restrictions, including remittance payments, but much remains.
“The close relationship between our US customers and their families living in Cuba, along with the role our services play in helping to create a better life, is inextricably linked,” said Gabriella Fitzgerald, president of Western Union North America. “We are pleased to offer this important connection once again to our customers.”
The test phase is being rolled out at select locations in Miami, and transfers can be sent to three government-operated banks in Cuba – Banco Popular de Ahorro, Banco Metropolitano SA and Banco de Credito y Comercio.
Western Union says payments cannot be sent online, a widely used alternative, and money can only be transferred in dollars. Payments are also limited to $2,000 per day, and the money must be collected with a Cuban ID card, Fitzgerald said in a news release.
The reopening of remittance payments could provide key economic support to Cuban families during the Caribbean country’s time of economic crisis, one of a number of factors fueling the migratory exodus from the island.
The migration has put political pressure on the Biden administration as large numbers of Cubans arrive at the US southern border, also pushing for new dialogue with the Cuban government.
The suspension of remittance payments has added a significant hurdle to the island’s economic recovery efforts after the pandemic.
Cubans abroad often have to use creative techniques to get money from relatives on the island, such as sending money through a bitcoin trading app or carrying large amounts of cash on the flight home.
