If you have sent money via Western Union to your relatives in Cuba, then these new changes will make you look for alternatives. Due to new U.S. sanctions, Western Union has immediately suspended money transfer service to the island indefinitely. This has been due to the inclusion of Orbit SA, the Cuban entity responsible for processing these transactions in the U.S Cuba restricted lists.
Why did Western Union suspend services to Cuba?
With the implementation of U.S. sanctions against entities aligning with the Cuban military, the services were put on hold. The Cuba Restricted List was modified to include Orbit SA, which regulates the sending of remittances to Cuba and prohibits U.S. companies from transacting with the entity. Given that Western Union is a global company, it must comply with these regulations, halting services.
What are the alternatives for sending money to Cuba?
Here are alternatives you can use:
- Online money transfer services: These include Small World and Fonmoney, who focus on remittances to Cuba. These companies allow you to send money directly to a bank account in Cuba for depositing or providing cash for pickup in designated locations around Cuba.Â
- Cryptocurrency transfers: Cryptocurrencies like Bitcoin probides decentralized ways to send money. Organizations such as BitRemesas make it easy to do cryptocurrency transfers using Bitcoin or other cryptocurrencies. Recipients will, of course, convert those funds into local currency in Cuba. It is important that both the sender and the recipient are familiar with how cryptocurrencies work since this method essentially moves away from traditional banking.Â
- These money transfer operators (MTOs) such as VaCuba and Cubamax remain on the scene and continue to provide remittance services to Cuba, with options for cash pickup, bank deposit, or reloadable debit cards.Â
- Informal channels: Some people utilize their trusted travelers, also known as “mules,” to hand-carry into Cuba cash or goods. Although informal and risky, this method is widely accepted among some communities.
Are there any fees or limitations with these alternatives?
Each alternative comes with its own set of fees, exchange rates, and limitations. It’s essential to:
- Compare Fees: Look into the transaction fees and exchange rates offered by different services to ensure you’re getting the best deal.
- Understand Limitations: Some services may have restrictions on the amount you can send or may require the recipient to have specific types of bank accounts or identification.
- Assess Security: Ensure that the service you choose is reputable and secure to protect both your funds and personal information.
What should I consider when choosing an alternative method?
When choosing an alternative means to send money to Cuba, here are a few things you need to consider:
- Reliability: Only use a platform that has successful records of sending money to Cuba.Â
- Speed: Transfer times depend on urgency and can vary from very very quick to quite slow and dependable services.Â
- Recipient’s easy access: Make sure that the transfer method chosen allows for easy recipient access to the funds, be it a bank deposit, cash pick-up, or debit card use.Â
- Comply with regulations: Ensure that the service you chose complies with regulations imposed by the United States of America and, in Cuba to avoid litigation.
There are alternatives you can use to continue to support your loved one back in Cuba regardless of the suspension by the western Union. But when choosing an alternative, make sure you stay informed about the regulatory changes.
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