The Cuban regime, labeled as a U.S. state sponsor of terrorism, has reportedly duped the Biden administration into inadvertently aiding its military through a remittance processing scheme. El Nuevo Herald revealed details that showcase how the Castro government established what was presented as a “civilian” company to manage remittance transactions sent to Cubans from abroad. This maneuver allowed the regime to sidestep sanctions imposed by outgoing President Donald Trump in 2020, aimed at preventing remittances from being funneled to the Cuban military.
Documents leaked from the Cuban government indicated that this deception was made possible through the creation of a new state company named “Orbit S.A.” in 2022, which claimed independence and was positioned as part of the Cuban Commerce and Foreign Investment Ministry. However, the true nature of Orbit S.A. was that it operated under the control of the Cuban military, effectively disguising itself to gain a license from the Biden administration to process international remittances. This tactic has permitted the regime to maintain financial support from emigrants, all while reinforcing its military’s economic influence.
The regime’s financial operations are tightly interwoven with both remittances and tourism, significant sources of revenue that sustain its authoritarian grip on power. By 2020, estimates suggested that the Castro government retained around 74.3 percent of every dollar sent in remittances. Between 1993 and 2020, Cuba received an estimated total of $46.8 billion in remittances, largely benefitting military-run ventures and enabling investments in hotels and tourism at the expense of everyday Cuban citizens.
During Trump’s first term, the U.S. had imposed restrictions on remittance flows to Cuba, targeting specifically the military-owned company FINCIMEX, which had previously managed overseas money transfers. The Castro regime reacted sharply to these sanctions, accusing the U.S. of exploiting and disregarding the hardships faced by the Cuban people. Although these sanctions are still active, the Biden administration reversed the restrictions on remittances in 2022, inadvertently facilitating funds that likely benefited the Cuban military.
The design of Orbit S.A. was deceptive, as documents reviewed by El Nuevo Herald revealed its operational ties to Cimex, a known military subsidiary under the GAESA holding, which also manages the banned FINCIMEX. Reports indicated that the new remittance company reported financial data and performance metrics to GAESA officials, demonstrating that it essentially functioned as a front for military interests. Furthermore, the physical proximity of Orbit S.A. to the previously sanctioned FINCIMEX and the staffing overlap emphasized the ongoing connection between the two entities.
Experts and political figures have voiced their concerns, asserting that the Biden administration was fully aware of Orbit S.A.’s true purpose. Emilio Morales, director of Cuba Siglo 21, stated that substantial evidence presented to the State Department should have prompted a reevaluation before the approval of the remittance processing license. Similarly, Congresswoman María Elvira Salazar highlighted that she had warned the Biden administration about the potential for exploitation in this remittance scheme, underlining the continuous problem of the Castro regime profiting from the generosity of Cuban exiles, further compounding the struggles faced by families on the island.