Western Union Expands Its U.S.-to-Cuba Remittance Pilot

Nearly two months after announcing it was resuming money transfers from the United States to Cuba, The Western Union Co. is significantly expanding the service to include more than 4,400 locations in the U.S. and Puerto Rico from which remittances to the island nation can be initiated. In addition, U.S. consumers can initiate a money transfer via WesternUnion.com and the Western Union mobile app.

The move follows Wednesday’s news that Western Union is teaming with 7-Eleven Mexico to enable money transfers from some 1,800 7-Eleven stores in that nation.

In January, Western Union announced it was resuming money transfers from the U.S. to Cuba after a two-year hiatus. At the time, money transfers could be initiated through a select group of retail locations in the greater Miami area. The remittance giant ceased money transfers to Cuba in January 2020 after the Trump administration tightened sanctions on that country after branding it a state sponsor of terrorism. The Biden administration has since loosened some Trump-era restrictions on Cuba, including those on remittances.

To facilitate the transfers, Western Union is working with three banks in Cuba: Banco Popular de Ahorro; Banco Metropolitano S.A.; and Banco de Credito y Comercio. U.S. consumers can send money to Cuban residents who hold bank and debit card accounts at one of the three banks. Transactions will be processed by Orbit S.A., a global trading corporation that received authorization from the Central Bank of Cuba in February to process money transfers to the island as a non-bank financial institution.

U.S. consumers can remit up to $2,000 per transaction by presenting a valid U.S. government-issued identification. Transactions initiated by noon Eastern time will be available for same day receipt. Remittances sent after noon Eastern will be available the next business day.

One restriction Western Union has put in place is that U.S. consumers are prohibited from sending funds to their own MLC bank accounts/debit cards in Cuba. MLC, or Moneda Libremente Convertible, cards are prepaid cards that can be used by visitors to the island at stores where their existing credit and debit cards are not accepted. Travelers can request MLC cards at Banco de Crédito y Comercio and Casas de Cambio S.A. MLC is Cuba’s official digital currency, representing a value of 1 MLC to the U.S. dollar.

Western Union says it plans to expand the pilot further later this year.