_________________________________________________________
US State Dept Narcotics Report 2012 (introduction):
Cuba is located between some of the largest exporters of illegal drugs in
the hemisphere and the U.S. market. Drug trafficking organizations
(DTOs) frequently attempt to avoid Government of Cuba and U.S.
Government counter drug patrol vessels and aircraft by skirting Cuba’s
territorial waters. Bilateral interdiction efforts and GOC intensive police
presence on the ground have limited the opportunities in or around
Cuba for regional traffickers.
The goals of Cuba’s counternarcotics enforcement effort are to reduce
the available supply of narcotics on the island and to prevent traffickers
from establishing a foothold. The Cuban Border Guard (TGF) maintains
an active presence along Cuba’s coastal perimeter, primarily to deter
illegal emigration, but also to conduct maritime counter-drug operations
and coastal patrols. Cuba’s domestic drug production remains negligible
as a result of active policing, stiff sentencing for drug offenses, very low
consumer disposable income and limited opportunities to produce illegal
drugs, either synthetic or organic, in quantity. Cuba’s counternarcotics
efforts have prevented illegal narcotics trafficking from having a
significant impact on the island.
Cuba is party to the 1988 UN Drug Convention.nvention.
For Full report, click here
_________________________________________________________
US State Dept Trafficking in Persons Report 2011 (introduction):
(Tier 3)
Cuba is a source country for adults and some children subjected to
forced labor and sex trafficking. Some Cuban medical professionals
assigned to work abroad have claimed that their passports were retained
as a means of keeping them in a state of exploitation, thus preventing
them from traveling freely. Prostitution of children reportedly occurs in
Cuba as prostitution is not criminalized for anyone above 16 years old.
The scope of trafficking within Cuba is particularly difficult to gauge due
to the closed nature of the government and sparse non-governmental or
independent reporting.
The Government of Cuba does not fully comply with the minimum
standards for the elimination of trafficking and is not making significant
efforts to do so. The government did not publicize information about
government measures to address human trafficking through
prosecution, protection, or prevention efforts during the reporting period.
Recommendations for Cuba: Investigate reports of involuntary labor of
Cuban citizens; in partnership with trafficking victim specialists, ensure
adults and children have access to specialized trafficking victim
protection and assistance; take measures to ensure identified sex and
labor trafficking victims are not punished for unlawful acts committed as
a direct result of being trafficked; and publicize measures to address
human trafficking through prosecution, protection, or prevention efforts.
For full report click here
_________________________________________________________
US State Dept Terrorism Report 2009
The Cuban government and official media publicly condemned acts of
terrorism by al-Qa’ida and affiliates, while at the same time remaining
critical of the U.S. approach to combating international terrorism.
Although Cuba no longer supports armed struggle in Latin America and
other parts of the world, the Government of Cuba continued to provide
physical safe haven and ideological support to members of three
terrorist organizations that are designated as Foreign Terrorist
Organizations by the United States.
The Government of Cuba has long assisted members of the
Revolutionary Armed Forces of Colombia (FARC), the National Liberation
Army of Colombia (ELN), and Spain’s Basque Homeland and Freedom
Organization (ETA), some having arrived in Cuba in connection with
peace negotiations with the governments of Colombia and Spain. There
was no evidence of direct financial support for terrorist organizations by
Cuba in 2009, though it continued to provide safe haven to members of
the FARC, ELN, and ETA, providing them with living, logistical, and
medical support.
Cuba cooperated with the United States on a limited number of law
enforcement matters. However, the Cuban government continued to
permit U.S. fugitives to live legally in Cuba. These U.S. fugitives include
convicted murderers as well as numerous hijackers. Cuba permitted one
such fugitive, hijacker Luis Armando Peña Soltren, to voluntarily depart
Cuba; Peña Soltren was arrested upon his arrival in the United States in
October.
Cuba’s Immigration Department refurbished the passenger inspection
area at Jose Marti International Airport and provided new software and
biometric readers to its Border Guards.
_________________________________________________________
AML News / Updates
March 1, 2012 - OFAC has updated its list of Cuba Travel and Carrier
Service Providers and Remittance Forwarders.
Read More
On December 21, 2011 - OFAC updated its list of Cuba Travel and
Carrier Service Providers and Remittance Forwarders.
Read Update
Links:
Worldwide AML Legislation (International Bar Association)
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FATF Statement re AML Strategic Deficiencies:
Date: 16 February 2012
Cuba has not committed to the AML/CFT international standards,
nor has it constructively directly engaged with the FATF. At the
same time, Cuba attended a GAFISUD plenary as a guest and
prepared an informal document on its AML/CFT regime. The FATF
has identified Cuba as having strategic AML/CFT deficiencies that
pose a risk to the international financial system. The FATF urges
Cuba to develop an AML/CFT regime in line with international
standards, and encourages Cuba to establish a constructive and
direct dialogue with the FATF and is ready to work with the Cuban
authorities to this end.
____________________________________________________
Sanctions:
May 13, 2012 - OFAC has updated its Comprehensive
Guidelines for License Applications to Engage in Travel-Related
Transactions Involving Cuba
Read Update
March 1, 2012 - OFAC has updated its list of Cuba Travel and
Carrier Service Providers and Remittance Forwarders.
Read More
February 16, 2012 - OFAC has updated its list of Cuba Travel
and Carrier Service Providers and Remittance Forwarders
See List
On December 21, 2011 - OFAC updated its list of Cuba Travel
and Carrier Service Providers and Remittance Forwarders.
Read Update
The Cuban Assets Control Regulations, 31 CFR Part 515 (the
“Regulations”), were issued by the U.S. Government on July 8,
1963, under the Trading With the Enemy Act in response to
certain hostile actions by the Cuban government. They are still in
force today and affect any person subject to U.S. jurisdiction—
including all U.S. citizens and permanent residents wherever they
are located, all individuals and organizations physically in the
United States, and all branches and subsidiaries of U.S.
organizations throughout the world—as well as all persons
engaging in transactions that involve property in or otherwise
subject to the jurisdiction of the United States.
To view the full report on US sanctions in place against Cuba,
please visit the following link: -
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/cuba.aspx
The EU has agreed a resolution condemning the USA embargo
of Cuba. For further information, please visit the following link: -
http://ec.europa.
eu/external_relations/cfsp/sanctions/docs/measures_en.pdf
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
The Cuban Assets Control Regulations, 31 CFR Part 515, were
issued by the U.S. Government on July 8, 1963, under the
Trading With the Enemy Act. The regulations impose restrictions
on travel and remittances to Cuba and prohibit import of products
of Cuban origin or, with some exceptions, export of goods from the
U.S. to Cuba. Additionally, all assets of the Cuban government or
Cuban nationals in the U.S. are frozen. In 2009, some of the
restrictions related to family travel and remittances were relaxed,
however, the broad trade embargo enforced by the regulations
remains in place.
Cuba is not considered a regional financial center. Cuban
financial practices and U.S. sanctions prevent Cuba’s banking
system from fully operating in the international financial system.
The government-controlled banking sector, low internet and cell
phone usage rates, and threat of seizures related to the U.S.
embargo all render Cuba an unattractive location for money
laundering. There is a significant black market in Cuba that
operates as a supply and demand market parallel to the heavily
subsidized and rationed formal market controlled by the state.
The black market, including mostly goods obtained locally but also
some smuggled goods, is primarily funded by the nearly $1 billion
in remittances sent to Cuba every year. These funds, mostly in US
dollars or euros, are traded for Cuban pesos at government
foreign exchange houses. Most of these remittances come from
Cuban-Americans and are delivered to family members. Cuba
continues to have one of the most secretive and non-transparent
national banking systems in the world.
During 2010 there were no significant changes in the Government
of Cuba’s (GOC) policies or regulations concerning anti-money
laundering/combating the financing of terrorism (AML/CFT). There
were no reports of new arrests, seizures, or prosecutions. Cuba's
non-transparent national banking system hampers efforts to
monitor the effectiveness and progress of Cuba's AML/CFT
regime. The GOC claims to be in full compliance with international
counter-terrorism conventions and to have taken into account the
international standards.
Cuba’s significant black market and geographic location between
drug-supplying and drug-consuming countries present challenges
for authorities. Cuba has few international businesses, no
offshore casinos or internet gambling sites, and no free trade
zones.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: Not available
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, money exchangers, remitters, financial
management firms
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, money exchangers, remitters, financial
management firms
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: Not available
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
There have been no known instances of investigations or
prosecutions related specifically to money laundering. As of 2001,
Cuba has bilateral agreements with a number of countries related
to combating drug trafficking. It is unclear whether any of these
agreements include mechanisms to share information related to
financial crimes or money laundering.
On December 20, 2010, a prominent U.S. money remitting
company in Cuba began disbursing to customers “Cuban
Convertible Pesos” (CUC) instead of U.S. dollars. Therefore,
Cuban customers of the company no longer have to pay the 10%
fee for cash exchanges into CUC from dollars. This may
encourage an increase from the approximately $1 billion in
current annual remittances from the U.S. to Cuba, as well as shift
from couriers carrying hard currency toward more electronic fund
transfers.
Cuba should increase the transparency of its financial sector and
increase its engagement with the anti-money laundering/counter-
terrorist financing community in order to increase its capacity to
fight these illegal activities.
Date: 16 February 2012
Cuba has not committed to the AML/CFT international standards,
nor has it constructively directly engaged with the FATF. At the
same time, Cuba attended a GAFISUD plenary as a guest and
prepared an informal document on its AML/CFT regime. The FATF
has identified Cuba as having strategic AML/CFT deficiencies that
pose a risk to the international financial system. The FATF urges
Cuba to develop an AML/CFT regime in line with international
standards, and encourages Cuba to establish a constructive and
direct dialogue with the FATF and is ready to work with the Cuban
authorities to this end.
____________________________________________________
Sanctions:
May 13, 2012 - OFAC has updated its Comprehensive
Guidelines for License Applications to Engage in Travel-Related
Transactions Involving Cuba
Read Update
March 1, 2012 - OFAC has updated its list of Cuba Travel and
Carrier Service Providers and Remittance Forwarders.
Read More
February 16, 2012 - OFAC has updated its list of Cuba Travel
and Carrier Service Providers and Remittance Forwarders
See List
On December 21, 2011 - OFAC updated its list of Cuba Travel
and Carrier Service Providers and Remittance Forwarders.
Read Update
The Cuban Assets Control Regulations, 31 CFR Part 515 (the
“Regulations”), were issued by the U.S. Government on July 8,
1963, under the Trading With the Enemy Act in response to
certain hostile actions by the Cuban government. They are still in
force today and affect any person subject to U.S. jurisdiction—
including all U.S. citizens and permanent residents wherever they
are located, all individuals and organizations physically in the
United States, and all branches and subsidiaries of U.S.
organizations throughout the world—as well as all persons
engaging in transactions that involve property in or otherwise
subject to the jurisdiction of the United States.
To view the full report on US sanctions in place against Cuba,
please visit the following link: -
http://www.treasury.gov/resource-
center/sanctions/Programs/pages/cuba.aspx
The EU has agreed a resolution condemning the USA embargo
of Cuba. For further information, please visit the following link: -
http://ec.europa.
eu/external_relations/cfsp/sanctions/docs/measures_en.pdf
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
The Cuban Assets Control Regulations, 31 CFR Part 515, were
issued by the U.S. Government on July 8, 1963, under the
Trading With the Enemy Act. The regulations impose restrictions
on travel and remittances to Cuba and prohibit import of products
of Cuban origin or, with some exceptions, export of goods from the
U.S. to Cuba. Additionally, all assets of the Cuban government or
Cuban nationals in the U.S. are frozen. In 2009, some of the
restrictions related to family travel and remittances were relaxed,
however, the broad trade embargo enforced by the regulations
remains in place.
Cuba is not considered a regional financial center. Cuban
financial practices and U.S. sanctions prevent Cuba’s banking
system from fully operating in the international financial system.
The government-controlled banking sector, low internet and cell
phone usage rates, and threat of seizures related to the U.S.
embargo all render Cuba an unattractive location for money
laundering. There is a significant black market in Cuba that
operates as a supply and demand market parallel to the heavily
subsidized and rationed formal market controlled by the state.
The black market, including mostly goods obtained locally but also
some smuggled goods, is primarily funded by the nearly $1 billion
in remittances sent to Cuba every year. These funds, mostly in US
dollars or euros, are traded for Cuban pesos at government
foreign exchange houses. Most of these remittances come from
Cuban-Americans and are delivered to family members. Cuba
continues to have one of the most secretive and non-transparent
national banking systems in the world.
During 2010 there were no significant changes in the Government
of Cuba’s (GOC) policies or regulations concerning anti-money
laundering/combating the financing of terrorism (AML/CFT). There
were no reports of new arrests, seizures, or prosecutions. Cuba's
non-transparent national banking system hampers efforts to
monitor the effectiveness and progress of Cuba's AML/CFT
regime. The GOC claims to be in full compliance with international
counter-terrorism conventions and to have taken into account the
international standards.
Cuba’s significant black market and geographic location between
drug-supplying and drug-consuming countries present challenges
for authorities. Cuba has few international businesses, no
offshore casinos or internet gambling sites, and no free trade
zones.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: Not available
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, money exchangers, remitters, financial
management firms
Enhanced due diligence procedures for PEPs: Foreign: NO
Domestic: NO
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, money exchangers, remitters, financial
management firms
Number of STRs received and time frame: Not available
Number of CTRs received and time frame: Not available
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: NO
With other governments/jurisdictions: Not available
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
There have been no known instances of investigations or
prosecutions related specifically to money laundering. As of 2001,
Cuba has bilateral agreements with a number of countries related
to combating drug trafficking. It is unclear whether any of these
agreements include mechanisms to share information related to
financial crimes or money laundering.
On December 20, 2010, a prominent U.S. money remitting
company in Cuba began disbursing to customers “Cuban
Convertible Pesos” (CUC) instead of U.S. dollars. Therefore,
Cuban customers of the company no longer have to pay the 10%
fee for cash exchanges into CUC from dollars. This may
encourage an increase from the approximately $1 billion in
current annual remittances from the U.S. to Cuba, as well as shift
from couriers carrying hard currency toward more electronic fund
transfers.
Cuba should increase the transparency of its financial sector and
increase its engagement with the anti-money laundering/counter-
terrorist financing community in order to increase its capacity to
fight these illegal activities.
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| CUBA |
| KnowYourCountry |
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| Last Updated: 13 May 2012 |