The White House announced Tuesday plans to excise Cuba from a list of countries that support terrorism, a step that would remove one of the largest hurdles to U.S. financial ties to the nation. In a message to lawmakers, President Obama said that a U.S. State Department review of Cuba's designation ordered in December concluded that the country hasn't provided support to international terrorism in the last six months, and that the Cuban government recently pledged to deny support to terrorists going forward. The planned removal of Cuba from the department's State Sponsors of Terrorism list, which could take effect...
U.S. President-elect Donald Trump's pledge to reverse current American sanctions policies for Cuba and Russia is forcing financial institutions to reconsider whether and how to process transactions to and from those countries, say sources.
U.S. officials are increasingly relying on economic sanctions as a tool of foreign policy, but the effectiveness of sanctions in achieving policy objectives is questionable, according to Bryan Early, political science professor at University at Albany.
Thursday's partial easing of U.S. sanctions against Cuba will do much to bring money to the island nation, but even a full rollback of economic restrictions won't soon resolve the biggest barriers to entry for American banks: low profit margins and high regulatory risk.
New U.S. Treasury Department regulations easing economic sanctions against Cuba and the compliance burden of financial institutions could make it easier for money remitters to break the rules, say analysts.