Shibbir Ahmed, Washington, D.C. – The United States has imposed sanctions on Cuba’s state-owned Banco Internacional de Comercio, S.A. (BICSA), accusing the bank of providing financial services to an Iranian bank previously sanctioned by Washington. Secretary of State Marco Rubio announced the action on Thursday. According to Rubio’s statement, the Cuban bank has provided services to Iran’s sanctioned Karafarin Bank since at least 2022. The U.S. Department of the Treasury sanctioned Karafarin Bank in 2020 under Executive Order 13902.
Rubio said BICSA was designated under Section 2(a)(i)(A) of Executive Order 14404 for operating in, or having operated in, Cuba’s financial services sector. The decision was coordinated with a separate Treasury Department action targeting Iranian financial actors.
In his statement, Rubio accused communist-ruled Cuba of serving for years as a base for activities by Iran and other countries and groups considered hostile to U.S. interests. He described Iran as the world’s leading state sponsor of terrorism.
“The Trump Administration will not tolerate a rogue state hosting hostile foreign military, intelligence and terror operations less than a hundred miles from the American homeland,” Rubio said. He added that the administration would continue taking aggressive action to identify and dismantle the Cuban government’s financial and security connections with Iran and other countries and groups it considers dangerous and hostile.
According to the State Department, Executive Order 14404 authorizes broad sanctions against individuals and entities that support the Cuban government’s security apparatus, are responsible for repression in Cuba, or pose threats to U.S. national security.
The department said the action also advances the objectives of Executive Order 14380, titled “Addressing Threats to the United States by the Government of Cuba,” and National Security Presidential Memorandum 5. Those measures seek to improve human rights, strengthen the rule of law, encourage free markets and private enterprise, and promote democracy in Cuba.
Under the sanctions framework outlined by the State Department, all property and interests in property belonging to the designated entity that are located in the United States or are in the possession or control of U.S. persons are blocked. Such assets must be reported to the Treasury Department’s Office of Foreign Assets Control (OFAC). Entities owned individually or collectively at least 50% by one or more blocked persons are also subject to blocking restrictions.
Unless authorized or exempt, U.S. citizens, businesses and other persons subject to U.S. jurisdiction are prohibited from conducting transactions involving the property or interests of designated or otherwise blocked persons. The restrictions also prohibit providing or receiving funds, goods or services to, from, or for the benefit of blocked persons, unless an applicable authorization or exemption permits the transaction.
The State Department warned that foreign individuals and entities could also face sanctions risks if they conduct transactions with persons designated under Executive Order 14404. Foreign parties operating in Cuba’s energy, defense and related materials, metals and mining, financial services, or security sectors may also face sanctions exposure under the order.
Foreign financial institutions and other non-U.S. persons were urged to exercise caution when dealing with sanctioned parties. The department warned that returning assets to a sanctioned party or transferring them to another jurisdiction for the target’s potential use could expose non-U.S. persons to significant sanctions risks.
Additionally, the Cuban Assets Control Regulations restrict persons subject to U.S. jurisdiction from dealing in property in which Cuba or a Cuban national has an interest, unless the transaction is authorized or exempt.
The State Department said the purpose of sanctions is not simply to punish, but to encourage positive changes in behavior. Individuals and entities seeking removal from the Specially Designated Nationals and Blocked Persons List (SDN List) may submit petitions through OFAC’s Reconsiderations Portal. Applicants may also consult the State Department’s Delisting Guidance for information about the process.
