Western Union resumes remittance service to Cuba after 3-month outage

The Western Union

09/05/2024 18:39

HAVANA, May 9 (Reuters) - Western Union confirmed on
Thursday it had resumed its remittance service from the U.S. to
Cuba after the system collapsed more than three months earlier,
restoring a vital lifeline for Cubans and their friends and
families in the U.S.
    Western Union said its services to Cuba had been disrupted
since Jan. 28, forcing Cubans who depend on the company's money
transfer system to seek alternative, and often more costly,
routes for receiving money.
    "We understand our service is a crucial connection between
those living in the U.S. and their family living in Cuba," said
Rodrigo Garcia, the president of Western Union North America and
Latin America. 
    "We are pleased to resume service to this vital corridor and
provide essential money transfer services to those living on the
island."
    Western Union in February said services had collapsed due to
technical issues with the processing of transactions in Cuba,
and said the outage only affected the Caribbean island nation.
    Western Union, among the world's top providers of money
transfer services, resumed remittances to the communist-run
island in 2023, nearly three years after the Trump
administration put in place sanctions that triggered a halt in
service.
    Remittances are a crucial source of income for Cuban
families, but the need has become even more acute of late amid a
severe economic crisis resulting from tighter U.S. sanctions,
the COVID-19 pandemic and a floundering tourism sector.
    Studies show that almost 70% of the Cuban population
receives remittances in varying forms, according to a 2023
report from the United Nations Economic Commission for Latin
America and the Caribbean (ECLAC), though there are no official
figures available from the Cuban government.

 (Reporting by Dave Sherwood; Editing by Paul Simao)
 ((dave.sherwood@thomsonreuters.com;))