Biden will go down as one of the worst presidents in modern history. This latest move further cements that fact.
As all hell broke loose after Joe Biden was was tricked into helping this foreign adversary.
Cuba’s Communist Regime Deceives Biden Administration into Funding Military Through Remittance Scheme
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.
Remittance Revenue: A Lifeline for Repression
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.
A Military-Run Front Company
El Nuevo Herald reported that Orbit S.A. is directly tied to GAESA and staffed by personnel with longstanding ties to the military-run Cimex corporation. Government documents reveal that Orbit S.A. shares financial infrastructure with Cimex, processes remittances through its system, and regularly reports to GAESA executives. The company’s offices, located next to FINCIMEX, are even staffed by employees of the sanctioned entity. Diana Rosa Rodríguez Pérez, the current director of Orbit S.A., reportedly has an extensive career within Cimex and GAESA.
Despite this evidence, the Biden administration granted Orbit S.A. a license to process remittances under the belief that the company had no military ties. According to Emilio Morales, director of the Cuba Siglo 21 think tank, the administration was warned of Orbit S.A.’s true nature. “The Biden administration was explained from the beginning the true intentions of Orbit S.A. and the evidence was shown to the State Department that it was really a cover to evade sanctions, but they decided to go ahead,” Morales told Martí Noticias.
Political Backlash
Rep. María Elvira Salazar (R-FL) criticized the administration for falling into the regime’s trap.
“The Castro regime was again exposed for stealing the money that Cuban exiles send to their families on the island through another company linked to GAESA,” Salazar stated on social media. “I warned the Biden Administration that this would happen. January 20 is coming!”
The revelation highlights the Cuban government’s resourcefulness in evading sanctions and ensuring the flow of funds to its military, despite international efforts to curb its oppressive reach. It also reveals just how incompetent the Biden administration is for allowing this to happen.
Meanwhile, Cuban exiles face the painful reality that much of the money they send home never reaches their families but instead strengthens the very regime oppressing them.
Stay tuned to The Federalist Wire.
