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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.

Criminality

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 incorporating privatization, with significant reliance on tourism, skilled labor exports, and key commodities such as sugar and tobacco. Despite facing challenges like widespread poverty and shortages of basic goods, the country has notable achievements in healthcare and education. The investment climate is constrained by socialist principles, bureaucratic hurdles, and the U.S. embargo, although recent reforms aim to attract foreign investment.

Cuba's investment climate is shaped by its socialist principles, with most production means owned by the state and limited private sector involvement. Recent reforms have sought to attract foreign investment, especially in tourism and agriculture, but bureaucratic challenges and the U.S. embargo significantly hinder progress. Although the government has introduced measures to promote cooperatives and private enterprises, the ongoing economic crisis and strict regulations continue to deter substantial foreign investment.

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  • Risk Analysis
  • Corruption
  • Economy
  • Sanctions
  • Narcotics
  • Executive Summaries
  • Investment Climates
  • FATF Status
  • Compliance
  • Key Findings
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