Why U.S. banks are keeping an eye on Cuba talks

Why U.S. banks are keeping an eye on Cuba talks
by Nancy Marshall-Genzer
Friday, February 27, 2015 - 05:00

U.S. and Cuban negotiators will meet in Washington Friday. On the
agenda: whether Cuba should be taken off the U.S.'s list of state
sponsors of terrorism. Cuba wants off that list, and American banks are
watching the negotiations closely. So are U.S. travelers, who can't use
their credit or debit cards on the island.

Right now, Americans can pay for hotels and plane tickets to Cuba in
advance. But once you get there, "all of your expenses, you need cash
for them," says Philip Peters, president of the Cuba Research Center in
Alexandria, Va., who was traveling in Havana when we spoke.

"You're going to rent a car, you're going to rent a cell phone, you're
going to feed yourself," he says. "You're going need about $200 a day in
cash."

Peters says, if Cuba were taken off the terrorism list, U.S. banks would
be more willing to do business there.

Geoff Thale, a Cuba analyst with the advocacy group Washington Office on
Latin America, says right now, banks are leery.

"What may seem like, to the bank, an innocent banking arrangement, could
lead to substantial fines," he says.

But Thale says, even if Cuba were taken off the list, U.S. banks would
still be cautious.

Case in point: MasterCard is removing its block on U.S. card
transactions in Cuba this Sunday. But, that doesn't mean your bank will
clear them. MasterCard says you should contact your bank before you go
to ensure your card will be "supported on the island."

Source: Why U.S. banks are keeping an eye on Cuba talks |
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