Secretary of State Marco Rubio announced sanctions on Banco Internacional de Comercio S.A. (BICSA), a state-owned bank in Cuba, for allegedly servicing Iran’s Karafarin Bank, which has been blacklisted since 2020. The U.S. Department of State reported that BICSA has been providing services to Karafarin since at least 2022. Rubio stated that Cuba has been allowed to operate as a base for malign actors and terror groups, specifically naming Iran as a significant concern.
The sanctions block any BICSA assets located in the U.S. or under U.S. control. U.S. persons are already prohibited from conducting business with the bank without authorization. The sanctions also serve as a warning to foreign banks regarding potential penalties for dealings with sanctioned entities.
Karafarin Bank is listed as a Specially Designated National, limiting its access to the global financial system. The relationship between Cuba and Iran has historical roots dating back to the 1979 Islamic Revolution, characterized by mutual opposition to U.S. policies.
A State Department report identified Iran as one of Cuba’s main strategic partners, accusing Havana of providing various forms of support to Tehran. Recent actions by the Cuban government, including a condemnation of U.S. and Israeli military actions against Iran, have further highlighted this alliance.
This sanction follows a broader campaign by the U.S. to apply pressure on the Cuban regime, including previous sanctions against other Cuban financial institutions and high-ranking officials. Rubio has publicly opposed any perceived softening of U.S. policy towards Cuba, emphasizing the need for continued scrutiny of Cuba's international relationships.