Cuba Country Summary
Sanctions
High Concern
FATF AML Deficient List
Low Concern
Terrorism
High Concern
Corruption
Medium Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Low Concern
Offshore Finance Center
Low 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.
Bribery & Corruption
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 41 |
| World Bank: Control of Corruption Percentile Rank | 52 |
Economy
Cuba has a largely state-run planned economy that is increasingly privatizing under a new constitution, with significant reliance on tourism, skilled labor exports, and the production of sugar, tobacco, and coffee. Despite notable achievements in literacy and healthcare, the country faces severe economic challenges, including high poverty rates exacerbated by the COVID-19 pandemic and U.S. sanctions.
Cuba's investment climate is shaped by its socialist principles, with most production means owned by the state, although recent reforms have been introduced to attract foreign investment, especially in tourism and infrastructure. The abolition of the dual currency system in 2021 has created both challenges and opportunities for investors, but the environment remains complicated due to bureaucratic hurdles and the ongoing U.S. embargo.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
