Senior Policy Consultant Matthew Aho published an article in Cuba Study Group calling the U.S.’s current policy regarding remittance to Cuba ‘a de factor shutdown’ of Cuban emigrants’ contributions to the their families back on the Caribbean island. While Cuban Americans had previously relied on family remittances to provide support to their relatives in Cuba, new sanctions imposed during the final weeks of the Trump administration shut down many of these channels, Aho wrote. The new sanctions have caused confusion for U.S. policy makers, banks, remittance processing companies, and consumers, he adds.. He clarifies the current legal situation, why the Trump administration issued sanctions and what the impact has been, common misconceptions about the Cuban government’s role in the remittance process, and whether Cuban Americans are still allowed to send money to their families back home.
“The Trump administration contended that its goal was not to ‘shut down’ remittances to Cuba, but, rather, was to remove companies with alleged ties to the Cuban military from any involvement in remittance processing,” Aho said. “However, the end result has been a de facto shutdown of formal remittances.”