Banks action on Cuban sanctions hits UK companies

By Roland Gribben for the Telegraph
21 October 2010

Lloyds TSB has blocked a bank transfer from Cuba to a UK business that supplies agricultural consultancy services despite the free flow of trade between the Caribbean country and the EU

A small business consultancy has tabled complaints to the Business Secretary and EU authorities accusing Lloyds TSB of breaking the law by refusing to process a cash payment from a Cuban business for £7,156.

Barrie Bain, chairman of Tunbridge Wells-based Fertecon, said yesterday: "I find it astounding that a bank controlled by the state is doing something that is against the law. It is damaging our business and presumably the export efforts of thousands of other small UK companies."

Lloyds has told him the bank has reviewed its approach to dealing with countries subject to government and international sanctions "in order to best protect its customers, its businesses, its people and its reputation."

Keiron Walsh, a senior manager in the bank's commercial department, told Mr Bain: "Unfortunately we are unable to offer you advice on alternative arrangements for your payments."

The block on the bank transfer has thrown into fresh focus changes quietly introduced by banks to avoid falling foul of US regulations over the breach of its trade sanctions against Cuba.

Neither the UK nor the EU has similar blocks on trade with Cuba but the importance of the US market has seen UK banks fall into line.

Lloyds has already felt the full weight of the US regulatory authorities, being forced to pay $350m in January last year after being accused of helping clients in Iran, Libya and Sudan to avoid US sanctions. The sanctions power exercised by the US was also on display when Barclays was fined in August for allegedly breaking US sanctions through business dealings with people linked to Cuba, Iran, Libya, Myanmar and Sudan. The British bank agreed to pay a $298m fine covering business transactions worth $500m.

The upshot is that Barclays has told customers it no longer handles any business with links with Iran, North Korea, Myanmar or the sanctioned areas of Sudan. "Our sanctions policy also includes a prohibition on transactions involving anyone or any entity on the US, UN [United Nations], UK or EU sanctions list," the bank said.

Lloyds defended its action over the Cuban payment. "Lloyds takes its responsibility with regard to the application of sanctions very seriously and recently reviewed our approach to dealing with countries and entities that are subject to government and international sanctions across the globe in order to best protect our customers, our businesses, our people and our reputation."

Mr Bain, who specialises in providing advice on agricultural markets, particularly fertilisers, and has 95pc of his business overseas has undergone a crash course in trade restrictions since the cheque was blocked a week ago and said his research showed that under the Protection of Trade Interests Act and the EU Blocking Statute "it is illegal to block payments from Cuba".

He has been told by Vince Cable's Business Department that no order has been made under the terms of the Trade Interests Act making it an offence to comply with another country's extra territorial legislation – regulations designed to counter the US restrictions under the terms of the Helms-Burton act in 1996.

But Mr Bain has discovered there is scope for the department to consider an investigation if a complaint is tabled about a bank's refusal to handle a transaction with Cuba.

http://www.telegraph.co.uk

Cuba Moving to Reduce Public Sector Jobs

The Eighth Conference of the Transportation and Port Workers Trade Union was held over the weekend in Havana with a focus on the ongoing process to reduce staff numbers at workplaces nationwide.

General Secretary of the Cuban Workers Union of Cuba (CTC) Salvador Valdés spoke at the closing day of the conference. He noted that the Cuban trade union faces the challenge of cutting excessive staff in a frank, rational, transparent and just manner.

Valdés said that the trade union meetings are the best place to explain the urgent need to implement this policy and the series of measures approved by the government. He added that during these meetings, workers should be encouraged to express their opinions and respect dissenting points of view.

The new measures are aimed at overhauling the Cuban economic and labor model shifting excess workers to areas where they are needed and where they can be more productive with a focus on employment that is decent, socially useful and economically sustainable.

Quoting Cuban President Raúl Castro, Valdés said the Revolution will not abandon anyone, but that the State cannot guarantee unlimited salary and job protection. He urged citizens to be proactive in finding socially useful employment.

“We are aware that workers and people, in general, are very concerned about employment reduction and relocation. The enemies of the Revolution have exaggerated and manipulated this issue, distorting information released by the government,” said the CTC General Secretary.

Valdés pointed out that it is essential that the leaders of the workers’ movement and trade unions explain that there is no change in the policy of the Revolution or in the objectives set out in the construction of socialism.

Employment remains an essential component of the social and economic policy of the Cuban state and the principles that rule it continue to be in force. Procedures, salaries, employment and work relations are being modified along with new ways of management.

Across the country, political reflection and analysis is taking place. In workplaces, workers are studying and discussing the speech delivered by Cuban President Raúl Castro on August 1 at the closing ceremony of the ordinary session of the People’s Power National Assembly.

A strong, organized and united trade union and the unity of the Cuban workers and the Cuban people are fundamental to materialize the changes that will keep intact the principles of our Revolution and socialism.

http://www.juventudrebelde.co.cu

Cuban Trade Unions Urge Efficiency

Havana, Sep 14 (Prensa Latina) A call for efficiency and making the best of available resources for meeting national needs were the focus of a statement issued Monday by the Central Organization of Cuban Workers, CTC.

Cuba needs to advance economically, better organize its production, boost its reserves of productivity and increase productivity, and improve discipline and efficiency, and that is only possible through honest work and dedication, said the statement.

Today, more than ever, the will and determination to continue building socialism and advance in the development and upgrading of the Cuban economic model are alive and unshakeable, the statement said.

In line with that process, the 2011 economic plans include eliminating over 500,000 jobs in the state sectors, and increasing jobs in the non-state sector by the same number, the statement said. The success of the initiative will depend on the political support provided by union leaders and under the leadership of the Communist Party, and on the social consensus acheived on the economic and political relevance of this measure, the statement said.

Within the state sector, it will only be possible to continue filling jobs that are essential, for work that has historically faced labor shortages, such as agriculture, construction, teachers, police, industrial workers, and others, the text said.

Changes to employment policy will be implemented gradually and progressively, will begin immediately, and due to their magnitude and scope, will affect all sectors, the statement said.

The text concluded by saying that the unity between Cuban workers and the people has been key to creating the gigantic achievements of the Revolution, and to the transformations now underway, will continue to be the most important strategic weapon.

http://www.plenglish.com/

Washington Fines Swiss Bank for Violating Blockade of Cuba

HAVANA, Cuba, Dec 18 (acn) The US government has levied a fine of US $536 million on Credit Suisse Bank, Switzerland’s second largest bank, for carrying out transactions that violate the US blockade of Cuba and helped “enemies” of Washington such as Iran, Libya, Sudan and Burma.

The announcement was made by US Attorney General Eric Holder, who said that in the particular case of Cuba, Credit Suisse made 32 electronic transactions to the tune of over $323,000.

In announcing the agreement with the Switzerland-based bank that allowed the US investigators have access to its records, Holder said that “the criminal behaviour of Credit Suisse, because of its implication and complicity, is simply stunning.”

The transactions took place between August 2003 and December 2009 through US financial institutions violating US regulations that label Cuba as a “country that sponsors terrorism.”

In May 2004, the Union of Swiss Banks (UBS), Switzerland’s largest bank, had to pay $100 million after it was fined for allowing countries such as Cuba, Iran, Libya and Yugoslavia to use an international program of the US Federal Reserve to replace old banknotes.

http://www.juventudrebelde.co.cu

Cuba and Venezuela sign $3.2bn trade deal

Cuba's President Raul Castro and his Venezuelan counterpart Hugo Chavez are signing economic co-operation deals worth $3.2bn (£1.96bn).

The documents cover 285 accords in areas including energy, sport and technology.

The new deals will give Venezuela a greater involvement in oil exploration off the Cuban coast.

Cuba also agrees to buy more than $400m (£246m) worth of Venezuelan goods, including food, tyres and clothes.

The BBC's correspondent in Havana Michael Voss says the agreement will provide an economic lifeline to the communist-run island.

'Historic'

The signing comes a day before Cuba hosts a summit of the regional political and economic bloc, the Bolivarian Alliance for the Peoples of America (Alba), which was founded by the two nations five years ago as a radical alternative to America's free trade policies in the region.

Our correspondent says there is speculation that Fidel Castro may attend the summit.

The 83-year-old met President Chavez on Saturday but has not been seen in public for three-and-a-half years.

Mr Castro said the agreements were "historic".

Our correspondent says the deals also underscore Venezuela's role as Cuba's closest political and commercial ally and comes as Raul Castro struggles to cope with the global economic crisis.

The island has suffered a sharp decline its revenues from tourism as well as mineral and tobacco exports.

Venezuela - an Opec member - is already an important source of energy and trade to the Caribbean island, which repays part of its oil bill by providing the services of 40,000 professional workers.

Last year trade between the two countries was at around $5.26bn (£3.23bn) last year, the Reuters news agency reported.

www.bbc.co.uk