Cuba’s Central Bank Orders Zero Tolerance for Bank Staff Amid Cash Shortage
CUBA · BANKING
Key Facts
- —The country Cuba, the communist-run island just south of Florida, has a banking system almost entirely owned by the state.
- —Why it matters Banks and cash machines often run out of notes, so middlemen sell cash for bank transfers at steep fees.
- —What happened On 28 September Cuba’s central bank ordered zero tolerance for bank staff who try to profit from other people’s needs.
- —The arrests Staff at two state banks in Santiago de Cuba were reported held on 24 September over alleged 30–50% fees.
- —What it means for you The statement promises audits and whistleblower protection, but no extra banknotes for branches or cash machines.
- —Still open How many people were held, what they are charged with and how much cash was seized is unknown.
Cuba’s central bank has ordered “zero tolerance” for corruption among bank staff, in a statement published on Monday 28 September. The Banco Central de Cuba (BCC), which supervises the state banks, said offenders must answer with the full rigour of the law.
It names no case, but came four days after reports of arrests in Santiago de Cuba, the island’s second city. Workers at two state banks there were detained, suspected of selling scarce cash for fees of 30 to 50 percent.
What happened in Santiago de Cuba
On Thursday 24 September Héroes del Moncada, a pro-government Facebook page linked to the Interior Ministry, reported the detentions. Among those held were staff of two state banks, BPA (Banco Popular de Ahorro) and Bandec (Banco de Crédito y Comercio).
According to the page, bank workers acted “by mutual agreement” with self-employed traders to hand out cash in return for bank transfers. They allegedly used several bank cards and identity cards belonging to customers, Periódico Cubano reported.
Two branches were named: BPA branch 8312, and Bandec branch 8391 on Santo Tomás street. Officers seized cash, banknote-counting machines, bank cards and records of the transactions, Directorio Cubano reported.
The page said the operation ran over recent months and also caught people trading cash directly at cash machines. None of those detained has been named, and all are presumed innocent unless a court rules otherwise.
What the central bank said
The statement is signed by the bank’s president, Juana Lilia Delgado Portal, and it does not mention Santiago or any specific case. CiberCuba pointed to that silence, while Periódico Cubano and Directorio Cubano both linked the statement to the arrests.
The bank voiced its “most energetic rejection” of any “opportunistic, unscrupulous or illicit” attempt to profit from other people’s needs. “There will be no room for complicity, cover-up or impunity,” the statement said, as quoted by Directorio Cubano.
It told all banks to investigate complaints “in depth and without delay” and to establish administrative, labour and criminal liability. It also ordered tighter internal controls, more audits and closer work with the state bodies that pursue illegal activity.
One instruction covers whistleblowers, who are to be protected with confidentiality and “no reprisals”. The document describes itself as a memorandum that every bank must circulate and obey.
Why cash is so hard to get in Cuba
Since 3 August 2023 Cuba has pushed payments into bank accounts and electronic channels, a policy it calls bancarización. The central bank said then that cash was costly to print, move and store, the state news site Cubadebate reported.
Yet some shops still refuse bank transfers, while branches and cash machines often run short of notes. That gap has created a street trade in which people pay a fee to turn their bank balance into banknotes.
The fees are steep, and the Santiago case fits a wider pattern. In July one complaint reported by CiberCuba said a 1,000-peso (US$1.34) transfer bought only 600 pesos (US$0.81).
Dollar values here use Cuba’s informal market rate of 745 pesos to the dollar on Monday 28 September, as tracked by CiberCuba. That rate has risen about 10% in 30 days, as the peso’s slide continues.
Not the first case in Santiago this year
Santiago has seen similar arrests in 2026, according to earlier cases recalled by CiberCuba. In May, police detained people at cash machines in the city’s railway station for charging 35 to 50 percent.
In June officers seized 380,000 pesos (about US$510) from an alleged cash reseller who charged a 20% fee. A Cubadebate report in late April said a Santiago court had jailed three people for 15, 14 and 10 years.
They were convicted of forging bank documents to divert 5.2 million pesos (about US$6,950) from a state firm’s loan. That separate case involved accountants at a state canning company and a cooperative’s economist, not bank employees.
How the government is trying to ease the cash squeeze
On 16 September the central bank began issuing 10,000-peso (US$13) and 20,000-peso (US$27) notes, the highest denominations Cuba has issued. Delgado Portal said the new notes adjust denominations to current prices, Cubadebate reported.
She told the state television programme Mesa Redonda on Tuesday 15 September that service quality is one of the public’s main worries. She listed plans to cut queues, simplify procedures and ease access to cash, according to Cubadebate.
On the same programme officials outlined 20 planned changes to banking, including room for banks with private and foreign capital. They also cover consumer loans, a review of interest on peso savings and more digital services.
Two readings of the same problem
The central bank blamed the sector’s troubles on “the economic crisis and the tightening of the blockade”, meaning the US embargo. It said such conduct does “not characterise Cuban bank workers” and thanked the public for reporting abuses.
Comments under the Facebook post were mostly critical, CiberCuba reported. “If there were money in the bank and cash machines, nobody would profit from trading cash for a percentage,” one reader wrote.
Periódico Cubano, an independent outlet critical of the government, said the challenge is restoring trust and letting people reach their own money. Earlier, it noted that officials had given no details on the causes of the high demand for cash.
What is not known
The number of people detained has not been published, nor their names or the exact charges. The value of the cash seized is also unknown, and the Facebook page described it only as “a large sum”, CiberCuba reported.
It could not be independently confirmed that the central bank wrote its statement in response to the Santiago arrests. The document itself names no case, no person and no bank branch.
What comes next
Those detained could face trial under Cuba’s criminal code, but no court date has been made public. The 20 banking changes outlined on 15 September are to be phased in gradually, and consumer-loan details have yet to be announced.
The statement does not change any rule for account holders and sets no new limits on withdrawals. It also contains no measure to put more banknotes into branches or cash machines.
Frequently Asked Questions
Why is cash so hard to get in Cuba?
Since August 2023 the government has pushed payments into bank accounts and electronic channels. Branches and cash machines often run short of notes, so middlemen sell cash for a fee.
What are BPA and Bandec?
The Banco Popular de Ahorro (BPA) and the Banco de Crédito y Comercio (Bandec) are state-owned Cuban banks that serve the public. Workers linked to one branch of each in Santiago de Cuba were detained in September.
Does the statement change anything for account holders or visitors?
No. Cuba’s central bank announced audits, investigations and whistleblower protection, not new rules for customers.
Who are the people detained?
Their names have not been published, and all are presumed innocent unless a court convicts them. Reports say they include bank employees and people trading cash at cash machines.
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