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Cuba to open account with American bank, State Department says Cuba to open account with American bank, State Department says
(about 2 hours later)
Cuba has re-established a banking relationship in the US, a senior State Department official said on Tuesday, a major step toward satisfying one of the island nation’s longstanding demands and restoring embassies in both countries.Cuba has re-established a banking relationship in the US, a senior State Department official said on Tuesday, a major step toward satisfying one of the island nation’s longstanding demands and restoring embassies in both countries.
The official refused to identify the bank, but the chief of the Cuban Interest Section, José Ramón Cabañas Rodríguez, visited Bradenton, Florida, last week and said the country was negotiating with a Florida-based institution. The official, who briefed reporters anonymously, said the Cuban government would make an announcement soon.The official refused to identify the bank, but the chief of the Cuban Interest Section, José Ramón Cabañas Rodríguez, visited Bradenton, Florida, last week and said the country was negotiating with a Florida-based institution. The official, who briefed reporters anonymously, said the Cuban government would make an announcement soon.
Related: Spies, artificial insemination and the pope: how Cuba came in from the coldRelated: Spies, artificial insemination and the pope: how Cuba came in from the cold
For more than a year, Cuba’s diplomats and employees in the US have had no access to a bank accounts or services, and have had to rely on cash shipments in order to pay salaries and the bills of running a de facto consulate. Few details have emerged from the diplomatic talks between Cuba’s chief negotiator, Josefina Vidal, and the US’s assistant secretary of state, Roberta Jackson, but reports indicate that the Cuban team have repeatedly raised the issue of access to banking services. For more than a year, Cuba’s diplomats and employees in the US have had no access to a bank accounts or services, and have had to rely on cash shipments in order to pay salaries and the bills of running a de facto consulate. Few details have emerged from the diplomatic talks between Cuba’s chief negotiator, Josefina Vidal, and the US assistant secretary of state, Roberta Jackson, but reports indicate that the Cuban team has repeatedly raised the issue of access to banking services.
Cuba’s two diplomatic missions in the US lost banking services in July 2013, when M&T Bank announced it would no longer handle the accounts of foreign interests. The bank gave Cuba until March 2014 to find a new bank, but ceased taking deposits that February. Cuba has been unable to procure banking services ever since.Cuba’s two diplomatic missions in the US lost banking services in July 2013, when M&T Bank announced it would no longer handle the accounts of foreign interests. The bank gave Cuba until March 2014 to find a new bank, but ceased taking deposits that February. Cuba has been unable to procure banking services ever since.
Jackson told the Miami Herald in January that the banking issue is “very important to the functioning of embassies. We have been trying to help them with it and will continue to work on it.”Jackson told the Miami Herald in January that the banking issue is “very important to the functioning of embassies. We have been trying to help them with it and will continue to work on it.”
Vidal and Jackson will next meet on 21 May to discuss the burgeoning relationship between the US and Cuba, and about what remains to be done before official embassies in Washington and Havana can open their doors.Vidal and Jackson will next meet on 21 May to discuss the burgeoning relationship between the US and Cuba, and about what remains to be done before official embassies in Washington and Havana can open their doors.
The US may also face a challenge in acquiring banking services for an embassy in Cuba, though it has been able to run an interests section from inside Havana’s Swiss embassy for years. Despite the cautious approach of certain businesses, banks remain wary of the high compliance costs and legal dangers of doing business on the island.The US may also face a challenge in acquiring banking services for an embassy in Cuba, though it has been able to run an interests section from inside Havana’s Swiss embassy for years. Despite the cautious approach of certain businesses, banks remain wary of the high compliance costs and legal dangers of doing business on the island.
Barring unlikely resistance from Congress, Cuba’s designation as a state sponsor of terrorism will expire on 29 May, greatly reducing the stigma and dangers of working on Cuba. But the Congress-imposed embargo and Havana’s untested maze of bureaucracy still represent minefields for banks that are interested in Cuba.Barring unlikely resistance from Congress, Cuba’s designation as a state sponsor of terrorism will expire on 29 May, greatly reducing the stigma and dangers of working on Cuba. But the Congress-imposed embargo and Havana’s untested maze of bureaucracy still represent minefields for banks that are interested in Cuba.
Presidents Barack Obama and Raúl Castro met in April in Panama for the first talks between American and Cuban heads of state in more than half a century. During secret negotiations that spanned more than a year and involved members of Congress, Pope Francis and deals to free spies, political dissidents and American captive Alan Gross, the two leaders orchestrated the historic rapprochement. Presidents Barack Obama and Raúl Castro met in April in Panama for the first talks between American and Cuban heads of state in more than half a century. During secret negotiations that spanned more than a year and involved members of Congress, Pope Francis and deals to free spies, political dissidents and captive American Alan Gross, the two leaders orchestrated the historic rapprochement.
In practice, however, both sides must still resolve a slew of questions regarding travel, business, infrastructure and politics within the constraints of a decades-old embargo.In practice, however, both sides must still resolve a slew of questions regarding travel, business, infrastructure and politics within the constraints of a decades-old embargo.