Cuba -- Travel Rule Implementation Regulatory Overview

As of my last update, Cuba has a regulatory framework for virtual assets (VAs) and Virtual Asset Service Providers (VASPs), but it has not explicitly adopted or implemented the specific requirements of the FATF Travel Rule (FATF Recommendation 16) in the same granular detail as many other jurisdictions.

Cuba is a member of GAFILAT (Grupo de Acción Financiera de Latinoamérica), an FATF-Style Regional Body (FSRB), and as such, is expected to comply with FATF Recommendations. While its VASP regulations aim for AML/CFT compliance, they do not specifically mandate the collection and transmission of originator and beneficiary information for virtual asset transfers as defined by the Travel Rule.

Here's a breakdown based on available information:

1. Adopted?

   • No, not the specific FATF Travel Rule. Cuba's primary regulation, Resolution 215/2021 from the Banco Central de Cuba (BCC), focuses on authorizing, licensing, and supervising VASPs within Cuba and requiring them to implement general AML/CFT measures. It mandates a risk-based approach, customer due diligence, and reporting of suspicious transactions. However, it does not explicitly detail the requirement to collect and transmit originator and beneficiary information for all VA transfers above a certain threshold, which is the core of the Travel Rule.

2. Effective Date:

   • The primary regulation governing virtual assets in Cuba is Resolution 215/2021 of the Banco Central de Cuba (BCC), published in the Official Gazette No. 70 Extraordinary on August 26, 2021.
   • It came into effect 90 days after its publication, meaning it became effective around November 24, 2021.

3. Threshold Amounts:

   • Since the specific FATF Travel Rule is not explicitly adopted, there are no defined threshold amounts for the collection and transmission of originator and beneficiary information on VA transfers.
   • The existing regulation emphasizes a risk-based approach for general AML/CFT, but not specific Travel Rule thresholds.

4. Which VASPs are Covered:

   • Resolution 215/2021 covers any legal entity operating in Cuba that intends to provide virtual asset services to the public or other entities. These services include, but are not limited to:
     • Exchange between virtual assets and fiat currencies.
     • Exchange between different forms of virtual assets.
     • Transfer of virtual assets.
     • Custody and/or administration of virtual assets or instruments enabling control over virtual assets.
     • Participation in and provision of financial services related to the issuance and/or sale of a virtual asset.
   • These entities must obtain a license from the Banco Central de Cuba to operate legally.

5. Technical Implementation Requirements:

   • As the Travel Rule itself is not explicitly mandated, there are no specific technical implementation requirements for the transmission of originator and beneficiary information.
   • Resolution 215/2021 broadly requires authorized VASPs to have "robust technological infrastructure" and "risk management systems" to prevent money laundering and terrorism financing, but it does not specify data standards or protocols for inter-VASP information sharing related to transfers.

6. Penalties for Non-Compliance:

   • Resolution 215/2021 states that non-compliance with its provisions by licensed VASPs will result in penalties "in accordance with current Cuban legislation."
   • These penalties could include:
     • Administrative fines.
     • Revocation of the operating license.
     • Criminal charges for money laundering, terrorism financing, or other related offenses under Cuba's broader criminal code for severe breaches.
   • Specific penalties for failing to implement the Travel Rule do not exist because the rule is not explicitly a part of the Cuban regulatory framework for virtual assets.

References:

• Resolución 215 de 2021 del Banco Central de Cuba (BCC) sobre activos virtuales:
  • Published in the Gaceta Oficial Extraordinaria No. 70 de 2021.
  • While finding a direct, stable URL to the Cuban Official Gazette can be challenging due to their archival system, the resolution is widely cited and available through legal databases and news sources. A common reference point is:
    • Gaceta Oficial de la República de Cuba, Edición Extraordinaria No. 70 de 2021 (You may need to search within the PDF for "Resolución 215").
    • A more accessible version might be found on legal portals or news sites, e.g., Cubadebate's article referencing the resolution.
• GAFILAT (Grupo de Acción Financiera de Latinoamérica):
  • GAFILAT's official website (for general information on Cuba's AML/CFT commitments as a member).

In summary: While Cuba has taken steps to regulate virtual assets and requires VASPs to implement general AML/CFT measures, it has not yet adopted the specific requirements of the FATF Travel Rule. VASPs operating in Cuba are subject to the licensing and AML/CFT obligations outlined in Resolution 215/2021, but they are not explicitly mandated to collect and transmit originator and beneficiary information for VA transfers in the same way that Travel Rule-compliant jurisdictions require.