ICYMI: FATF Takes Cuba Off Its AML/CFT List! Wait, What?

October 31, 2014

Unless you cyber-troll the FATF website, you probably missed this item.

Last Friday, FATF congratulated Cuba for taking such strong actions to police its financial system that Cuba will no longer be monitored for its compliance with anti-money-laundering and anti-terrorist finance rules.

Be patient. Don’t flip to the “Recommended Reading” section just yet. This is about Cuba’s false and unfair listing by the U.S. State Department as a state sponsor of terror.

FATF is actually a thing, not just a bad acronym: The Financial Action Task Force. It was created in 1989 at meeting of the G-7 nations to combat money-laundering and, after September 11, 2001, its mandate expanded to cover terrorist financing.

Countries that fail to embrace and enforce its rules suffer consequences. As the Wall Street Journal reports, it is “difficult for those nations to transact with the banking systems” of countries throughout the world, costing them billions.

If countries out of step with FATF are also subject to U.S. sanctions (e.g. the U.S. State Department’s list of terrorism-sponsoring states), their problems multiply. As a practical matter, they are locked out of the global financing sector, which could deny them “billions of dollars in potential investment,” according to one analysis.

Cuba knows this well.

Cuba was added to the list of State Sponsors of Terrorism in 1982, when the Reagan administration decided to play politics with counter-terrorism, a dangerous game taken up by every White House since. Listen to Dick Clarke, a career civil servant who advised three U.S. presidents on counter-terrorism policy, explain why Cuba stayed on the list in the 1990s; it wasn’t because Cuba supported terrorism, but rather it was for purely domestic political reasons.

Because no administration has been as candid as Mr. Clarke, they have kept Cuba on the list, but shifted their rationales for doing so as circumstances warranted.

At the start, the U.S. government accused Cuba of supporting insurgencies in Africa and Latin America. While Cuba’s activist foreign policy once involved supporting armed insurrection abroad, Cuba has long since ended these practices, as the Congressional Research Service (CRS) explains.

In 2004, the Bush administration called out Cuba for publicly opposing Washington’s “War on Terror,” not for supporting terror but for voicing criticism of U.S. policies. This was a flimsy charge, but it took the State Department a few years to drop it.

As recently as 2011, the State Department has used Cuba’s failure to meet FATF standards to justify its presence on the terror list: “Despite sustained and consistent overtures, Cuba has refused to substantively engage directly with the FATF. It has not committed to FATF standards and it is not a member of a FATF-style regional body.” Then, things changed.

Just a year later, State reported that “Cuba became a member of the Financial Action Task Force of South America against Money Laundering, a FATF-style regional body. With this action, Cuba has committed to adopting and implementing the FATF Recommendations.”

By the time the Department issued its 2013 report, all references to Cuba’s compliance with FATF’s standards had vanished completely.

So, remind us again, why is Cuba still on the terror list?

Even the State Department seemed confused when it released this year’s terror report which said, “there was no indication that the Cuban government provided weapons or paramilitary training to terrorist groups.”

In another sentence, State reported “Cuba has long provided safe haven to members of Basque Fatherland and Liberty (ETA) and the Revolutionary Armed Forces of Colombia (FARC).” But, in the very next line, State said, “Reports continued to indicate that Cuba’s ties to ETA have become more distant.”

We also know that Spain’s government told former President Carter that “ETA members are there at the request of the Spanish government,” and that Colombia, a close U.S. ally, is relying on Cuba as a host and facilitator for its peace talks with the FARC to help end their civil war.

This leaves only one allegation: “The Cuban government continued to harbor fugitives wanted in the United States.”

Here, the report refers to Joanne Chesimard, convicted in the U.S. for her role in the murder of a New Jersey state policeman, and to other so-called “militant groups” active in the U.S. decades ago. But, Cuba’s decision to allow them to live on the island is not an act tantamount to supporting terrorism.

Terrorism is a terrible thing. In 2013, the data show there were over 9,700 terror attacks worldwide that caused more than 17,800 deaths and 32,500 injuries. But not one casualty, not one act of violence was connected to Cuba.

So, if Cuba has zero connections to terrorism, why is it that when a reporter asked Marie Harf, the Spokesperson for State, “How much longer are you going to keep Cuba on the list of state sponsors of terrorism?” she replied by saying, “Well, it’s a good question that I know comes up a lot. The State Department has no current plans to remove Cuba from the State Sponsors of Terrorism list”?

Of course, she could have offered a more candid answer. There’s just one thing holding up Cuba’s removal from the State Department’s State Sponsors of Terrorism list, and it isn’t radical fugitives from the 1970s or 80s who found safe haven in Cuba.

It’s politics – and that’s a FATF, er, a fact.

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August Vacation and the Freedom to Travel

August 15, 2014

Just so you know, we are clearing out of the office for a week, which means we won’t be sending a fresh edition of the Cuba Central News Blast until August 29th. We’re going on vacation!

Of course, if we were working in Europe we’d have longer leave (and a better Cuba policy).  But, we still consider ourselves lucky, and still count ourselves as baffled that U.S. law frustrates the ability of most Americans to visit Cuba.

These restrictions on what Americans can do are imposed on us by the U.S. government in the name of advancing freedom in Cuba.  Which itself is altogether odd, when you consider that it is more restrictive, more bureaucratic, and more costly for nearly all Americans to receive permission from our government to visit Cuba than it is for Cubans to visit the United States or any other country.

Even worse, some policymakers in Congress would like to increase the restrictions on Americans who want to visit Cuba at a moment when more Cubans are coming to the U.S. and traveling the world than at any time since 1959.

Even worse than that, these same policy makers — the ones who restrict our rights to travel as a method for bringing democracy to Cuba — are also the biggest fans of our totally messed up “regime change” programs run out of USAID.  Read Fulton Armstrong’s recent piece about them here.   They want to shut the front door to Cuba while sending in a cast of amateurs and subversives through the backdoor.  To do what?  To break Cuba’s information blockade?   Isn’t that what travel’s for?

George Orwell could’ve designed the policy.  Some Americans — Cuban Americans, academics, and journalists — are more equal than others.  If you cannot be stuffed into one of these categories, you can journey to the island on a people-to-people program.  But it can be costly and the U.S. stipulates what you can do or can’t do once you arrive.

For most of Cuba’s post-revolutionary history, the government put tight restrictions on the right of their people to travel anywhere. The U.S. State Department is still handing out copies of a speech that President George W. Bush delivered in 2007, in which he said: “In Cuba it is illegal to change jobs, to change houses, to travel abroad…”

But, in January 2013, Cuba eliminated the requirement that its travelers obtain exit visas.  As Human Rights Watch reported this year, “Nearly 183,000 people traveled abroad from January to September 2013, according to the government. These included human rights defenders, journalists, and bloggers who previously had been denied permission to leave the island despite repeated requests, such as blogger Yoani Sanchez.”

The end of travel restrictions has begun a blossoming of economic and social openings for Cubans.  Cuentapropistas (self-employed Cubans, since it is now legal to change jobs) have reaped incredible material and professional gains from being able to purchase much needed inputs — at better prices and higher quality — and to meet their counterparts in the U.S., who share knowledge, experience and insight with them.

Our friend, Niuris Higuera, owner of Atelier Paladar in Havana, said she went home with “her head spinning from all the projects she wanted to develop in Cuba,” based on ideas she picked up in the States.

The experience was even more profound for young participants in a summer exchange program arranged by the Center for Democracy in the Americas and Cuba Educational Travel (CET) to bring four young Cubans to the U.S. to do homestays and internships.

As Collin Laverty of CET wrote us, Yoan Duarte, who graduated from the University of Havana in June and hopes to become a fashion designer, spent the summer in New York City shadowing some of the industry’s best. “The first few weeks I was constantly slapping myself in the face, thinking I was going to wake up in Havana at any moment. Now I’m eager to get back and put to work all the new skills I’ve acquired,” he said recently. Yoan plans to start his own clothing line upon return to Cuba.

Earlier today, the White House posted this paean to the travel industry, praising the growing number of jobs it is creating, the upward spiral of spending on travel and tourism-related goods and services, and how the U.S. hopes to welcome 100 million visitors per year by 2021.

We can only imagine what a stir would be created if Cubans and Americans of non-Cuban descent enjoyed the unrestricted right to exchange ideas and experience without any restrictions.  It would be good. It would be human.  But, today, that is not reality.

But the President can change that.  He has executive authority to broaden revenue-producing, information-exchanging, re-humanizing, and demystifying travel between the island and our country, which has outsized benefits compared to secreting USAID contractors into Cuba masquerading as advocates working on AIDS prevention, when they’re really trying to incite rebellion.

The choice ought to be clear to the President who, after all, got to go on vacation a week before us (which is, like, totally fair, ok?).

Happy vacation.

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