Western Union Resumes Remittance Services Between US And Cuba In Limited Capacity

Money transfer company Western Union said on Wednesday that it will resume in a limited capacity the ability to transfer money from the United States to Cuba, in reopening a key economic lifeline for the beleaguered nation.

Western Union will now open a test phase that will allow transfers for some areas in Miami, which can be picked up in Cuba through three government-run banks: Banco Popular de Ahorro, Banco Metropolitano SA and Banco de Credito y Comercio, according to the Washington Post.

The money being sent cannot be done online, and the company will be imposing a hard limit of $2,000 per day. The company said that it will also only allow the money to be picked up by those who have a valid Cuban ID, the Associated Press reported.

Money transfers between the U.S. and Cuba was halted in 2020 after then-President Donald Trump had issued policies that restricted the relationship between the two countries. While President Joe Biden has been loosening these ties, the ability to transfer money between the two countries had not been set in place until today.

“The close connection between our U.S. customers and their families living in Cuba, together with the role our services play in helping create better lives, are inextricably linked,” Western Union North American President Gabriella Fitzgerald said.

The return of money transfer services between the two countries reestablishes an economic lifeline to Cubans in the country as it faces a severe economic crisis that has encouraged many to leave and migrate out of the island.

The remittance payment suspension had become a hurdle for the country struggling to overcome the economic slowdown, and many have reportedly used other tactics such as Bitcoin or lugging money in their luggage to get the cash to their home. Now, the re-establishment of the service may help alleviate some of the problems being faced.

“We are delighted to offer this critical connection once again for our customers,” Fitzgerald said.