Cuba Country Summary
Medium-High Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Lower Concern
Terrorism
Higher Concern
Corruption
Medium Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Cuba is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The latest follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Cuba was undertaken in 2024. According to that Evaluation, Cuba was deemed Compliant for 19 and Largely Compliant for 20 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 5 of the Effectiveness ratings.
Sanctions
The United States maintains the most comprehensive sanctions regime against Cuba, administered primarily by the Office of Foreign Assets Control (OFAC), and implemented through authorities including the Trading with the Enemy Act, the Cuban Assets Control Regulations (CACR), the Cuban Democracy Act, and the Helms-Burton Act, with measures such as asset freezes, a trade embargo, travel restrictions, the Cuba Restricted List, and export controls. Other major actors do not impose autonomous sanctions on Cuba; instead they largely oppose the US embargo and maintain normal relations, with the EU not imposing sanctions on Cuba and using the Blocking Regulation to mitigate extraterritorial US measures, and the UK, Canada, Australia, Japan, New Zealand, and Switzerland likewise not imposing unilateral sanctions.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 40 |
| World Bank: Control of Corruption Percentile Rank | 52 |
Cuba faces significant challenges related to crime and corruption, characterized by a thriving black market and systemic exploitation in various sectors, including human trafficking and illicit trade. The state's control over resources and the economy, combined with low salaries and currency instability, fosters an environment where corruption is rampant, and public trust in institutions remains low, further complicating efforts to combat these issues.
Economy
Cuba's economy is predominantly state-run and planned, with recent constitutional changes indicating a shift towards increased privatization. The economy heavily relies on tourism, skilled labor exports, and key commodities such as sugar and tobacco, yet it grapples with significant challenges including widespread poverty and shortages of essential goods. While the government has initiated reforms to attract foreign investment, particularly in tourism and agriculture, bureaucratic obstacles and the U.S. embargo continue to hinder substantial economic growth and investment opportunities.
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