WASHINGTON, United States — The United States has imposed economic sanctions on Cuba's state-owned Banco Internacional de Comercio S.A. (BICSA), accusing the financial institution of maintaining business relationships with an Iranian bank already subject to American sanctions.

The measures, announced on Thursday, October 15, form part of a broader effort by President Donald Trump's administration to restrict Iran's access to international financial networks and increase economic pressure on governments Washington accuses of supporting Tehran.

According to the US Department of State, BICSA has provided financial services to Iran's Karafarin Bank since at least 2022, despite the Iranian institution being sanctioned by Washington in 2020.

US Secretary of State Marco Rubio accused the Cuban government of facilitating financial activities involving countries and organisations considered threats to American national security.

In a statement announcing the decision, Rubio described Cuba as a platform through which hostile foreign actors could operate against the United States.

He maintained that the Trump administration would continue targeting financial institutions suspected of helping Iran and other sanctioned entities access international banking services.

The sanctions are expected to restrict BICSA's access to the American financial system, including the freezing of any assets under US jurisdiction and limitations on transactions involving American individuals and institutions.

However, the US Treasury has outlined a limited period until November 14, 2026, during which foreign financial institutions can wind down certain existing transactions involving the Cuban bank without being targeted under the new sanctions authority.

The announcement drew an immediate condemnation from Cuba, with Foreign Minister Bruno Rodríguez rejecting Washington's accusations and describing the sanctions as another attempt to undermine the country's economy.

Writing on social media platform X, Rodríguez defended BICSA's operations, insisting that the bank conducts legitimate financial transactions both domestically and internationally.

He accused the United States of deliberately intensifying economic hardship for ordinary Cubans through measures designed to restrict the country's access to international financial services.

The latest development adds to longstanding tensions between Washington and Havana, which have worsened under the Trump administration's renewed economic and diplomatic restrictions.

In January 2026, the US government declared Cuba a national security threat and subsequently introduced additional measures targeting the island nation's energy supplies and financial activities.

Washington maintains that the restrictions are necessary to address security concerns and prevent sanctioned governments from using international banking networks to evade existing financial controls.

Cuban authorities, however, argue that the measures amount to economic coercion and place further pressure on a population already struggling with shortages of essential goods, energy disruptions and broader economic difficulties.

The sanctions against BICSA were announced alongside additional US Treasury measures targeting financial institutions and businesses accused of facilitating Iran's international transactions.

Among those sanctioned was the Iraq-based International Development Bank for Investment and Finance, which American authorities accused of helping Iranian entities obtain access to US dollars.

The Treasury Department also targeted several Iranian financial institutions, companies and individuals allegedly involved in networks used to circumvent international sanctions.

US officials said the coordinated measures were intended to disrupt financial arrangements that allow Tehran to maintain access to foreign currencies and support activities Washington considers destabilising.

The developments highlight the expanding use of financial sanctions as a central instrument of US foreign policy, particularly in its dealings with Iran and governments maintaining close economic relations with Tehran.

While American officials insist that such measures are necessary to protect national security, Cuba continues to challenge their legitimacy and their consequences for its economy.

The latest sanctions are likely to add further strain to relations between Washington and Havana, with both governments maintaining sharply different positions on the legality and implications of the restrictions.

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