The communist regime in Cuba — a U.S.-designated state sponsor of terrorism — tricked the outgoing administration of U.S. President Joe Biden into funding its repressive military through a “civilian” company that handles remittances sent to Cubans from abroad, El Nuevo Herald revealed on Tuesday.
The Castro regime’s scheme, in addition to funneling money illicitly to its military, allowed the communist regime to evade sanctions imposed by President-elect Donald Trump in 2020 on military-run companies that control remittances in Cuba, intended to prevent remittances from Cubans abroad from reaching the hands of the Cuban military.
According to leaked Cuban government documents reviewed by El Nuevo Herald, the Castro regime fooled the Biden administration through the creation of a new “independent” state company in 2022 to process remittances sent to Cuba through Western Union and Miami-based remittance agencies. In reality, the company is secretly run by the Cuban military, the Herald reported.
The Castro regime, through an umbrella of military-operated companies, has strict control over remittances and the nation’s tourism industry, both key funding sources for the authoritarian regime and its brutal repressive actions committed against the people.
By 2020, experts estimated that the Castro regime pocketed upwards of 74.3 percent of every dollar sent to Cubans through remittances. Cuba reportedly received some $46.8 billion in remittances between 1993, when the ruling communists allowed remittance operations in the country, and 2020. The Cuban military uses revenue obtained from remittances to build new hotels and prop up its tourism industry.
During the first administration of President-elect Trump, the United States imposed restrictions on remittances sent to Cuba meant to curb the flow of cash to the Castro regime and imposed sanctions on FINCIMEX, a Cuban military-owned company that at the time processed remittances to Cubans.
The Castro regime widely condemned the sanctions on FINCIMEX at the time, accusing the U.S. government of “cynicism, opportunism, and contempt for the Cuban people.” While the sanctions on FINCIMEX remain active at press time, the restrictions on remittances were reversed in 2022 by outgoing-President Joe Biden.
El Nuevo Herald explained in its report that the Castro regime created “Orbit S.A,” a state-owned company allegedly linked to the Cuban Commerce and Foreign Investment Ministry and with no ties to the military. The company reportedly received a license from the Biden administration in 2022 to process remittances “with the understanding that the Cuban company had no ties to the Cuban military.”
In reality, El Nuevo Herald reported that Orbit S.A. is actually run by Cimex, one of the many subsidiaries of the Cuban military’s GAESA holding company.
Cuban government documents reviewed by the newspaper reportedly showed that Cimex — which also handles the sanctioned FINCIMEX company — provides detailed monthly money transfer reports to GAESA processed by Orbit S.A. and regularly discusses the company’s performance with GAESA’s top executives.
Another document reviewed by the newspaper revealed that Orbit S.A. uses Cimex’s financial infrastructure to process the remittances sent from the United States. Furthermore, the offices of Orbit S.A. are located “literally next” to the military-run and sanctioned Fincimex company, and are staffed by Fincimex personnel. Orbit S.A.’s current director, identified as Diana Rosa Rodríguez Pérez, has “a long career at Cimex and GAESA,” El Nuevo Herald reported.
Emilio Morales, director of the Madrid-based Cuba Siglo 21 think tank, told Martí Noticias on Tuesday that “the Biden administration was explained from the beginning the true intentions of Orbit S.A. and the evidence was shown to the State Department that it was really a cover to evade sanctions, but they decided to go ahead.”
Rep. María Elvira Salazar (R-FL) stated on social media that she had warned the Biden administration on the Cuban military’s remittances scheme.
El régimen castrista quedó nuevamente al descubierto por robar el dinero que cubanos exiliados envían a sus familias en la Isla a través de otra empresa vinculada a GAESA.
— Rep. María Elvira Salazar (@RepMariaSalazar) December 3, 2024
Advertí a la Administración Biden que esto sucedería. ¡El 20 de enero se acerca!https://t.co/f0rAeKdAie
“The Castro regime was again exposed for stealing the money that Cuban exiles send to their families on the island through another company linked to GAESA,” Rep. Salazar said. “I warned the Biden Administration that this would happen. January 20 is coming!”
Christian K. Caruzo is a Venezuelan writer and documents life under socialism. You can follow him on Twitter here.
