The U.S. Department of State imposed sanctions on the Cuban state-run entity, Banco Internacional de Comercio S.A. (BICSA), on Thursday. This action comes due to BICSA's provision of financial services to Iran's Karafarin Bank since at least 2022, a bank that the U.S. had already sanctioned in 2020.
Secretary of State Marco Rubio made the announcement, citing Executive Order 14404, signed by President Trump on May 1, 2026. This order allows for extensive sanctions against those participating in Cuba's financial sector.
“For far too long, communist Cuba has served as a base for hostile actors and terrorist groups—including Iran, the world's leading state sponsor of terrorism—to target the United States,” Rubio stated when revealing the sanctions.
Rubio strongly emphasized that the Trump administration will not permit a rogue state to host hostile military, intelligence, and terrorist activities so close to U.S. soil. He pledged to continue dismantling the financial and security ties between the Cuban regime, Iran, and other threatening entities.
This action by the State Department was coordinated with the Department of the Treasury’s campaign against Iranian financial networks, named "Operation Economic Outcast." Launched in August 2026 by Secretary Scott Bessent, it was dubbed the "Economic D-Day."
In this operation, the Treasury also sanctioned the Iraqi International Development Bank for Investment and Finance, alongside two Iranian banks operating in free trade zones: Jazireh International Bank Company and Chabahar International Bank Overseas Company.
“The noose is tightening around Iran's economy, and even its so-called allies can't save it,” Bessent remarked, asserting that the Treasury will persist until Iran's financial resources are depleted and all channels supporting its war machinery are severed.
As a result of the sanction, all assets and interests of BICSA within U.S. jurisdiction are frozen and must be reported to the Office of Foreign Assets Control (OFAC). Moreover, foreign entities transacting with BICSA risk facing secondary sanctions.
The pressure on BICSA is part of a broader financial strategy the Trump administration has enforced against Cuba throughout 2026. The International Financial Bank (BFI), the financial arm of the military conglomerate GAESA managing most foreign exchange on the island, was sanctioned on June 23, along with other military-linked entities.
Subsequently, the Banco Exterior de Cuba was included in a new round of sanctions in September, targeting four entities associated with mineral resources and energy sectors.
With BICSA's designation, three major Cuban state banks have faced U.S. sanctions within less than four months, marking the most sustained financial blow Washington has delivered to Cuba's banking system since Trump resumed the presidency.
Cuba and Iran have maintained cooperative relations over decades, unified in their opposition to U.S. foreign policy. Tehran provided around $700 million in credits to Havana during the early 2000s, and both governments have signed successive economic and financial agreements, the latest of which was discussed in 2017 during the XVI Cuba-Iran Intergovernmental Commission.
The historical ties between Cuba and Iran have been extensively documented as an alliance of two regimes opposing U.S. influence.
Key Insights into U.S. Sanctions on Cuban and Iranian Banks
What prompted the U.S. to sanction BICSA?
The U.S. sanctioned BICSA for providing financial services to Iran's Karafarin Bank, a bank already under U.S. sanctions.
What are the implications of these sanctions for BICSA?
All assets of BICSA within U.S. jurisdiction are frozen, and entities transacting with BICSA may face secondary sanctions.
How do these sanctions fit into the broader U.S. strategy against Cuba?
The sanctions are part of a broader effort by the Trump administration to apply financial pressure on Cuba, targeting its major state banks.