Screening Before Anything Else
Cuba sits inside a dense and shifting set of restrictive measures, and the exposure is not only Cuban. Banks in third countries apply their own policies to Cuba-related transactions, and a payment that is entirely lawful for a UK or EU creditor may still be refused by a correspondent bank on its own risk grounds.
We therefore screen the counterparty, the transaction and the intended payment route before recommending any recovery step, and we will say plainly where we think a recovery cannot be received even if it can be obtained. Sanctions and financial crime compliance remains the creditor's own responsibility and requires its own specialist advice.
We do not provide sanctions, regulatory or legal advice. Screening forms part of our commercial assessment only.
Trading With the State
Foreign trade is conducted principally through state enterprises holding trading authorisations in defined sectors, together with joint ventures and, in the Mariel zone, foreign-invested entities operating under a distinct regime.
This changes the meaning of a default. A state trading enterprise does not usually disappear, does not usually dissipate assets and does not usually dispute a well-documented debt. What it does is queue. Payment obligations are met in the order and at the pace that centrally allocated foreign currency permits, and a creditor's position in that queue is influenced far more by relationship management and documentation than by legal pressure.
Arbitration Rather Than Litigation
Cuban foreign trade contracts typically provide for arbitration, frequently before the Cuban international commercial arbitration institution, occasionally at a seat in a third country. Cuba is a party to the New York Convention.
The consequence is that the dispute clause, not the Cuban court system, determines the route. Reading it correctly is the single most important step on the file, and where the clause points to a neutral seat with recognisable enforcement, the commercial position is considerably stronger than most creditors expect.
What Actually Moves a Cuban File
In our experience three things move a Cuban receivable: a complete and reconciled documentary record that the enterprise can present internally to justify allocation; a realistic instalment structure that fits the currency reality rather than the contract terms; and continuity of the commercial relationship, since an enterprise expecting future supply prioritises differently from one that is not.
Aggressive escalation, by contrast, tends to be counterproductive. It moves the file from the trading department to a legal one, and legal departments do not allocate currency.
How Long Does a Cuban Claim Take?
| Stage | Typical Duration | Cost |
|---|---|---|
| Screening and clause review Compliance, then the dispute clause | 3–6 weeks | Low |
| Documentary reconciliation A record the enterprise can act on | 4–8 weeks | Low |
| Negotiated instalment structure Fitted to currency allocation | 3–9 months | Low |
| Arbitration Where the clause is invoked | 12–24 months | High |
| Enforcement of an award Depends entirely on asset location | Variable | High |
How Does SXB Global Handle a Cuban Case?
We screen, then read the contract, then reconcile the documents - in that order - and only afterwards discuss escalation. On most Cuban files the recovery comes from a structured schedule supported by clean paperwork rather than from an award. Where legal proceedings become appropriate, SXB Global coordinates the instruction of appropriately authorised local counsel. Legal services are provided by the relevant independent legal professionals.