South Florida Bank Signs Correspondent Banking Relationship in Cuba
Published By : 23 Jul 2015 | Published By : QYRESEARCH
A bank from South Florida has become the first bank from the United States to enter into a correspondent relationship with Cuba. This step taken by the federal bank is touted as the latest strategy to strengthen the diplomatic relations between the longtime adversaries, United States and Cuba.
Stonegate Bank earlier this year was transformed into a bank for Cuban government that will take care of its diplomatic mission in the United States. Stonegate Bank on Tuesday entered into an agreement with Banco Internacional de Comercio SA of Cuba, after Cuba and the United States renewed their diplomatic ties which had remained severed for the past 54 years.
The Cuban bank, also called as BICSA, boasts over 600 correspondent relationships around the world and it is audited by Ernst & Young annually, a source from Stonegate said in a statement on Wednesday.
Chief executive of Stonegate, David Seleski earlier mentioned in a statement that this is an important step taken in terms of re-establishing the commercial relations between Cuba and the U.S. The ability to freely move finances from one country to another will help to increase trade between the countries and benefit the American companies wanting to do business in Cuba.
Although a majority of economic sectors in the U.S. until recently were banned to trade with Cuba under an economic embargo dating back to the Cold War, the recent steps taken by both the countries have created opportunities for food and medicine sales.
The President of the United States, Barack Obama had already relaxed parts of embargo earlier this year on January as a part of his policy to enhance the trade engagement with the Communist-governed Island. Such steps taken by the federal government allowed financial service institutions and telecommunication providers from the U.S. to carry out limited operations in Cuba.