Cuba Country Summary
Sanctions
US
FATF AML Deficient List
No
Terrorism
Corruption
US State ML Assessment
Criminal Markets (GI Index)
EU Tax Blacklist
Offshore Finance Center
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, which are designed to maintain international peace and security. Since 1966, the UN Security Council has established 31 sanctions regimes, including economic sanctions and targeted measures like arms embargoes and travel bans. Currently, there are 15 ongoing sanctions regimes that focus on political settlements, nuclear non-proliferation, and counter-terrorism, with a consolidated list of individuals and entities affected by these measures.
The U.S. has its own sanctions against Cuba, established under the Cuban Assets Control Regulations since 1963, which prohibit various transactions. In May 2022, the U.S. government announced changes to its sanctions regime concerning Cuba. These sanctions are part of a broader strategy that aims to support peaceful transitions rather than merely impose punitive measures.
Bribery & Corruption
| Rating | 0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 42 |
| World Bank: Control of Corruption Percentile Rank | 52 |
Economy
Cuba has a largely state-run planned economy that is increasingly moving towards privatization, yet it faces significant challenges, including widespread poverty and shortages of basic necessities. The economy heavily relies on tourism, skilled labor exports, and the production of sugar and tobacco, but is constrained by a long-standing U.S. embargo and recent economic crises, with 88% of the population living in extreme poverty as of 2023.
The investment climate in Cuba is shaped by its socialist government, which limits foreign investments and economic activities primarily controlled by the Communist Party. Although recent reforms have been introduced to attract foreign investment, particularly in tourism and infrastructure, challenges such as bureaucratic hurdles and the ongoing U.S. embargo create significant uncertainty for potential investors.
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- Risk Analysis
- Corruption
- Economy
- Sanctions
- Narcotics
- Executive Summaries
- Investment Climates
- FATF Status
- Compliance
- Key Findings
