Cuba duped Biden on spending

 The Federalist Wire:

...

The communist government in Cuba, labeled a U.S.-designated state sponsor of terrorism, reportedly duped the administration of President Joe Biden into financing its repressive military apparatus through non-government company handling remittances, according to an investigation by El Nuevo Herald published Tuesday.

The scheme, orchestrated by the Castro regime, funneled money to its military and circumvented sanctions imposed by President-elect Donald Trump in 2020.

These sanctions targeted military-run businesses controlling remittances to ensure that money sent by Cubans abroad would not bolster the regime’s authoritarian grip. However, the Cuban government evaded these restrictions by establishing a new company in 2022 that presented itself as independent but, in reality, was under military control, El Nuevo Herald revealed.

According to leaked Cuban government documents reviewed by the outlet, this state-controlled entity, named Orbit S.A., was set up to process remittances through Western Union and Miami-based agencies. Though officially portrayed as separate from the military, the company operates covertly under the Cuban military’s Cimex corporation, itself a subsidiary of the powerful GAESA conglomerate, which controls much of the nation’s economy.

The Castro regime has long relied on remittances and tourism to fund its oppressive rule. Military-operated companies dominate these sectors, channeling significant revenue into government coffers. By 2020, experts estimated that the regime absorbed up to 74.3% of every dollar sent in remittances. Between 1993—when remittances were first permitted—and 2020, Cuba received approximately $46.8 billion from this revenue stream. Much of this income is used to finance luxury hotels and bolster the tourism industry, all under military control.

Recognizing the connection between remittances and regime funding, the Trump administration sanctioned FINCIMEX, a Cuban military-owned firm processing these transactions, in 2020. The sanctions were part of a broader effort to reduce the cash flow propping up the regime. In response, the Cuban government lashed out, accusing the U.S. of “cynicism, opportunism, and contempt for the Cuban people.”

Despite the sanctions on FINCIMEX remaining in effect, President Joe Biden’s administration reversed restrictions on remittances in 2022. This decision inadvertently allowed the Castro regime to reroute funds through Orbit S.A., which was falsely presented as unaffiliated with the military.
...

This is more evidence of what a failure the Biden administration was in dealing with hostile countries like Communist Cuba.  This is something else the Trump team will have to clean up.