Cuba Money

HomeGovernment › Money

The country is one of the few remaining communist states left in the world, meaning that the government is quite in control of almost anything that happens. In order to understand why there are so many rules and regulations surrounding remittance of money to anywhere in the country, one must take a moment to consider its history and current state.

Before the 1950s, Cuba was under the control of the United States. However, in 1959, the control was overthrown during a revolution led by Fidel Castro. After that time, Castro took total control of the island and created a very strict communist state.

In 1962, the United States entered a confrontation between itself, Cuba and the Soviet Union. Called the Cuban Missile Crisis, because for thirteen days, there was the threat of Castro sending a barrage of missiles aimed at the United States, the issue was quite volatile. Because of this event, the United States placed many embargos on the island, many of which still stand today.

Remittance to Cuba from the United States

Many people need to send money to the country since they may have relatives or friends there. A great influx of immigrants from the island to the United States has meant a growth in the Cuban population. With this growth has grown the need for the ability to send money back home. However, the United States does still have many regulations that affect remittance to the island.

The rules placed on sending money are law for all people living in the United States. This includes US Citizens and resident aliens. 
One sanction from the United States makes it so that certain government officials and nationals cannot receive money from the United States. These sanctions are an effort to keep US money from funding dangerous operations.

There are different regulations for various types of money transfers from the United States. The first is called family remittance. This means that a person over the age of eighteen can send money to any proven immediate family member who resides on the island. However, there is on how much they can send. Family remittance cannot go over three hundred dollars per three months. However, the aforementioned rule about government officials in Cuba will negate the family remittance rule.

An emigration remittance allows a person in the United States to send a one-time payment to a person in Cuba for up to one thousand dollars for the specific use to emigrate from the island. However, this one thousand dollar remittance has to be broken into two payments.

In addition to these regulations, a person who chooses to send money to Cuba and qualifies will have to understand that certain fees and tariffs will be levied, leading to extra costs. These costs will include the United States Tariff, an eight percent processing fee, and the fees from the sending agency.

Sending Money

Money Transfer Agencies, Which Can Handle Remittance to Cuba
Because of the many restrictions and regulations, not every money transfer company can handle a remittance to Cuba. A person must choose an agency that is licensed by OFAC.

These agencies will be knowledgeable of the regulations and will know the information that is required from the sender to make the remittance happen.

Four agencies are known for their ability to send money from the United States to the island. These four include Western Union money transfer, Duales, Transcard, and Cash2Cuba.

When American currency is sent to the country, it is not converted into standard Pesos. Instead, it is converted to the convertible Peso (CUC). When United States dollars are changed into Cuban Pesos, a 19% tax will be levied, meaning that one hundred dollars will only equal an exchange of approximately eighty dollars in pesos. 

All money that is exchanged from the United States dollar to Cuban currency will be charged this fee. United States dollars cannot be transferred as standard pesos.

Remittance to Cuba from other Countries

While the United States includes a number of regulations on trade and remittance to Cuba, not all countries include the same rules and embargoes. Often these countries will allow sending of money to the country, but they will restrict these money transfers to specialty remittance companies. Countries such as Canada, Australia, and the United Kingdom include such regulations. 

Because of past events, the strong embargoes and restrictions make it very difficult for people to send money from the United States to Cuba. In most cases, the only way to send money is to send it to a proven member of the immediate family. Even in this instance, there are regulations. While some of the regulations have been altered, most of the rules still remain in place. Other countries do not have the same embargoes, but they may include certain restrictions that a person will need to understand before they try to send money.


Custom Search

Havana-Guide.com copyright © 2005-2014
All Rights Reserved.