Cuba changes the rules for its investors: this is what they need to operate – 2024-04-04 11:34:32

The Official Gazette of the Republic of Cuba published in its last edition of March 2024, Resolution 163/2023, which contains the terms and conditions for investment in the country.

The document, signed last December by the then president of the Central Bank of Cuba (BCC), Joaquín Alonso, specifies the minimum amount of money that the government requires to allow investments in its territory.

The resolution will come into effect seven days after its publication in the gazette, and represents significant changes in financial regulations, directly affecting banking and non-banking financial institutions, both with Cuban, mixed or foreign capital, that want to operate in Cuba. .

Minimum amounts to start financial operations in Cuba

The amounts establish the bases for the entry and operation of financial entities in the Cuban market, and differentiate between companies with purely Cuban, mixed or foreign capital.

According to the ruling party, this scheme seeks to “strengthen the country’s financial system”, promote investment and ensure a solid banking structure for Cuba.

1. Cuban Capital Banks:

• • Universal, Corporate and Second Floor Banks:
    • Minimum Initial Capital: 120 million Cuban pesos.
  • Investment Banks:
    • Minimum Initial Capital: 72 million Cuban pesos.

2. Mixed or Foreign Capital Banks:

• • • • Includes Universal, Corporate, Investment and Second Floor Banks:
        • Minimum Initial Capital: 5 million US dollars or its equivalent in freely convertible currency.

3. Non-Banking Financial Institutions of Cuban Capital:

• • • • General:
        • Minimum Initial Capital: 48 million Cuban pesos.
      • Specialized in Trust, Fund Administration, Remittances, ATM Network Administrators, Debit Card Operation Processors and Other Technological and Financial Services:
        • Minimum Initial Capital: 1.5 million Cuban pesos.

4. Non-Bank Financial Institutions with Mixed or Foreign Capital:

• • • • Minimum Initial Capital: 2 million US dollars or its equivalent in freely convertible currency.

Banks and financial institutions that currently operate with less than the minimum capital requirements have only one year to comply with these rules.