Visa, Mastercard Suspend Card Processing in Cuba

Visa and Mastercard stopped processing payments in Cuba after a foreign bank that handled outbound card transactions ended its relationship with Fincimex, the Central Bank of Cuba announced. The interruption is linked to U.S. Executive Order 14404, which takes effect June 6.

The Central Bank said it received a notice from an unnamed foreign processor that it would end its commercial agreement with Fincimex. The notice described the action as “directly related to Executive Order No. 14404 of May 1.” The U.S. Treasury’s Office of Foreign Assets Control (OFAC) says the order expands U.S. sanctions on Cuba and allows targeting non‑Cuban persons and foreign financial institutions that conduct or facilitate significant transactions with designated Cuban entities.

Under OFAC guidance, foreign banks face the risk of U.S. sanctions if they continue to process substantial transactions involving entities on OFAC’s lists. The Central Bank said the processor informed Cuban authorities that, effective June 6, it would be “unlawful and impossible to continue executing the agreements with the Cuban entity.” As a result, transactions routed through that processor on the Visa and Mastercard networks will no longer be accepted.

The suspension affects tourists and Cuban businesses that relied on international Visa and Mastercard transaction flows. Cuban authorities said alternative payment options will remain available, including national prepaid cards and cards on the Russian Mir network and China’s UnionPay. Tourists are advised to confirm whether their cards will function on those networks or to carry cash or local prepaid payment options.

Fincimex, registered in Panama, handles remittances and foreign operations for Cuba’s central bank. OFAC designated Fincimex in 2020 as an entity controlled by the Cuban military and linked to Grupo de Administración Empresarial S.A. (GAESA), an umbrella enterprise tied to the armed forces. The U.S. designation cited Fincimex’s role in the Cuban economy and opened the possibility of secondary measures against institutions that facilitate significant transactions with it.

The Central Bank did not name the foreign bank or set a timetable for restoring Visa and Mastercard services if U.S. policy changes. Financial institutions with correspondent ties to Cuban‑linked entities must now weigh compliance risks under Executive Order 14404 and OFAC guidance. Earlier rounds of sanctions and related pressures have previously led major card networks to curtail services in other markets.