Cuba Country Summary
Sanctions
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
Cuba, as a UN member, must adhere to sanctions imposed by the United Nations to maintain international peace and security. The UN Security Council has established 31 sanctions regimes since 1966, which include various measures such as economic sanctions and arms embargoes. These sanctions are designed to be fair and transparent, with ongoing regimes focusing on political settlements, nuclear non-proliferation, and counter-terrorism.
The U.S. has its own sanctions against Cuba, initiated in 1963 under the Trading With the Enemy Act, which restricts exports and imports. Recent changes to the Cuban sanction regime were announced by the U.S. Government in May 2022. The regulations apply to all individuals and entities under U.S. jurisdiction.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 41 |
| World Bank: Control of Corruption Percentile Rank | 52 |
Cuba's criminal landscape is characterized by human trafficking, particularly in sex and labor exploitation, alongside a thriving black market fueled by state supply chain weaknesses. Organized crime includes drug trafficking, with Mexican cartels eyeing Cuba as a transit hub, while cyber and financial crimes are prevalent due to systemic corruption and economic instability. The government's single-party system suppresses dissent and limits civil society, contributing to a complex interplay of internal vulnerabilities and external pressures that challenge resilience efforts.
Economy
Cuba has a largely state-run planned economy that is increasingly incorporating privatization, with significant reliance on tourism, skilled labor exports, and key commodities such as sugar and tobacco. Despite facing challenges like widespread poverty and shortages of basic goods, the country has notable achievements in healthcare and education. The investment climate is constrained by socialist principles, bureaucratic hurdles, and the U.S. embargo, although recent reforms aim to attract foreign investment.
Cuba's investment climate is shaped by its socialist principles, with most production means owned by the state and limited private sector involvement. Recent reforms have sought to attract foreign investment, especially in tourism and agriculture, but bureaucratic challenges and the U.S. embargo significantly hinder progress. Although the government has introduced measures to promote cooperatives and private enterprises, the ongoing economic crisis and strict regulations continue to deter substantial foreign investment.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings