Western Union ramps up US remittance service to Cuba

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 $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.

As 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 United States accounted for an estimated six percent 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 authorized to receive US funds.