The Ministry of Labor and Social Security of Cuba issued a new directive that tightens the requirements for self-employment, mandating the opening and mandatory operation of tax bank accounts.
The document, shared by the Communicator of the Department of Labor and Social Security of the municipality of Río Cauto on their Facebook profile, states that no accreditation documents will be provided to those who do not present a valid bank contract.
The official communication, signed by Ariel Fonseca Quesada, Deputy Minister of Labor and Social Security, is addressed to provincial and municipal directors of the agency, heads of Non-State Employment departments, officials of self-employment assistance offices, and heads of offices subordinate to the municipal administration councils.
According to the text, the processing offices must verify that each applicant possesses:
- A contract for the opening of an individual checking account for individuals authorized to engage in self-employment.
- A magnetic card linked to the tax bank account, with the first digits being 9212 or 9213.
In case of non-compliance, the self-employment project will be canceled
The document states that, despite previous efforts, the number of private workers who have not complied with the opening of tax accounts remains significant, which is why requirements are being reinforced and all relevant organizations are being called to cooperate.
This measure is part of the bancarization process initiated by the Cuban government since August 2023, which aims to reduce the use of cash, prevent financial crimes, save foreign currency, and strengthen fiscal control over the non-state sector. However, this process has faced criticism and encountered multiple obstacles in its implementation.
Previous reports have documented that many private businesses resist conducting their operations according to government dictates and reject the requirement to process payments through electronic channels, preferring to use cash in order to maintain liquidity in their operations.
In addition, failures have been reported in the payment platforms and limited access for the population to the digital means necessary to operate within this system
The imposition of banking services has also created issues with public access to cash, resulting in long lines and restrictions on cash withdrawals at banks and ATMs, particularly affecting workers and retirees.
Despite these challenges, the Cuban government continues to implement coercive measures to enforce the banking of the private sector, which has been interpreted by many as an attempt at economic control rather than a genuine financial modernization.
This document was shared by a communicator from the Municipal Directorate of Labor and Social Security of Río Cauto in Granma. Its structure, wording, recipients, and signature correspond to the usual formats of official communications from the Ministry of Labor and Social Security of Cuba. Although it has not been published on official government channels, its content reflects current guidelines within the process of banking and regulating self-employment on the island.
Frequently Asked Questions about the New Restrictions for Self-Employed Workers in Cuba
What are the new requirements that the Cuban government imposes on self-employed workers?
The Cuban government now requires self-employed workers to open and operate tax bank accounts. Without these bank accounts, no accreditation documents will be issued to carry out self-employment. This measure aims to strengthen fiscal control and reduce the use of cash in the Cuban economy.
What consequences do self-employed workers face if they do not comply with the opening of tax accounts?
Those who do not comply with the opening of tax accounts will see their self-employment project canceled. This measure is part of the government's strategy to enforce the banking of the private sector, despite the resistance and technical issues encountered in implementing this policy.
Why does the Cuban government insist on the banking of the private sector?
The Cuban government aims to reduce cash usage, prevent financial crimes, and strengthen fiscal control over the non-state sector. However, this measure has been criticized for creating issues with cash access and affecting the liquidity of private businesses, which many interpret as an attempt at economic control rather than a financial modernization.
How has the private sector reacted to the new restrictions imposed by the Cuban government?
The private sector has shown increasing discontent with the new restrictions imposed by the government. Reports and testimonies indicate that many private businesses prefer to use cash and reject the requirement to conduct payments through electronic channels, due to failures in payment platforms and limited access to digital means.
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