U.S. Imposes Sanctions on Cuban Bank Over Iranian Ties

On Thursday, U.S. Secretary of State Marco Rubio announced sanctions against BICSA, the Cuban communist regime’s bank, for facilitating services to Iran’s Karafarin Bank, which is already under U.S. sanctions.

BICSA, formally known as Banco Internacional de Comercio S.A. (“International Commerce Bank S.A.”), was established in Havana in 1993 under the Castro regime. It was supposedly intended to serve as a financial entity focused on import and export activities, along with various banking functions.

In a press statement, Rubio highlighted that BICSA has been working with Karafarin Bank since at least 2022. The latter is among the eighteen major Iranian banks that were sanctioned by the U.S. back in October 2020 during Trump’s presidency, an action aimed at preventing illicit access to American dollars.

Rubio stated, “President Trump has made it clear: the United States will not tolerate terrorism, organized crime, or foreign forces promoting anti-American agendas in our region. For too long, Communist Cuba has served as a base for hostile groups, including Iran, which is recognized as the world’s leading state sponsor of terrorism, to target the United States.”

Interestingly, Cuba is classified by the U.S. as a State Sponsor of Terrorism, primarily due to its longstanding support for the Iranian government and various terrorist organizations, such as Hezbollah, Hamas, and Colombia’s FARC and ELN.

In his statement, Rubio continued: “Let me be clear: the Trump Administration will not allow a rogue state to host foreign military, intelligence, and terror operations so close to the American homeland. We will persist in identifying and dismantling the Cuban regime’s financial and security ties with Iran and other hostile entities.”

The sanctions against BICSA mark the latest move in a broader strategy targeting institutions linked to the Cuban regime as part of Trump’s efforts against what he views as a rogue communist government that has been in power for nearly seventy years. Miguel Díaz-Canel, Cuba’s nominal “president,” condemned the sanctions, terming them part of an “economic and multifaceted war” against Cuba.

Díaz-Canel expressed that the sanctions aimed at BICSA were designed to undermine the Cuban people’s economic well-being and strengthen collective punitive measures against them.

Cuban Foreign Minister Bruno Rodríguez Parilla defended BICSA, describing it as a “legitimate bank” and remarked that the sanctions reflect a cruel intention to punish the Cuban populace and limit the country’s economic opportunities.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) indicated there will be a one-month wind-down period extending until November 14, 2026, before foreign individuals and institutions face targeting for dealings with the newly sanctioned bank.

OFAC has cautioned foreign entities to be wary in their interactions with BICSA. They shared that any foreign entities unable to withdraw from dealings with BICSA should seek guidance from OFAC.

“Persons subject to U.S. jurisdiction have long faced prohibitions against engaging with BICSA, a State-Owned entity in Cuba, unless authorized by OFAC,” they explained. “This continues to apply even in scenarios where non-U.S. persons are winding down activities with BICSA, unless separately permitted by OFAC.”