Visa and Mastercard halt payments in Cuba amid U.S. sanctions

Visa and Mastercard have halted payment processing services in Cuba, a move directly linked to the latest sanctions imposed by the U.S. government against foreign business partners of the island nation. The Cuban Central Bank announced that the foreign financial institution responsible for processing transactions for both Visa and Mastercard in Cuba is terminating its ties with Fincimex, a state-run financial services provider. Fincimex is part of Gaesa, a powerful economic conglomerate controlled by the Cuban military. The U.S. administration under President Donald Trump had previously targeted Gaesa with sanctions in early May, threatening repercussions for foreign banks and companies continuing to collaborate with the military group. This action has led to a significant disruption for tourists and residents relying on these international payment methods. Cuba's central bank condemned the decision, attributing it to Washington's "strangulation strategy" aimed at pressuring the Cuban economy. The bank stated that continuing these agreements would be unlawful from June 6. Consequently, only cash payments, national prepaid cards, and cards from Russia's Mir and China's UnionPay will be accepted for transactions on the island. The ongoing tensions between the U.S. and Cuba, exacerbated under the Trump administration, continue to impact the island's economic activities and international relations.

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it is impossible for us to continue fulfilling the agreements with Fincimex because it would be illegal.