Regime cancels BBVA bank operating license

SAN LUIS POTOSÍ, Mexico.- The Central Bank of Cuba (BCC) agreed to cancel the operating license of Banco Bilbao Vizcaya Argentaria SA (BBVA), of Spain.

In an official provision published this Monday in the Official Gazette, it was approved, at the request of the Spanish entity, to close the bank’s operations on the Island, after 23 years.

“Banco Bilbao Vizcaya Argentaria SA has notified the Central Bank of Cuba of the decision adopted by the Permanent Delegate Commission, on October 3, 2023, to proceed with the closure of the Representative Office in Havana, consequently, Banco Bilbao Vizcaya Argentaria SA has requested the cancellation of the Representation License granted through the aforementioned Resolution 57, of August 10, 2000, of the Central Bank of Cuba,” the legislation reported.

The same document that reports on the end of that relationship announced that a new financial entity is arriving in Cuba, directly from one of its greatest allies, Russia.

BCA Novikombank SA, a banking institution based in Russia, was authorized to open a representative office in Havana.

“As of the validity of this Resolution, BCA NOVIKOMBANK SA requests registration in the Registry of Financial Institutions and Non-Financial Entities attached to the Central Bank of Cuba, within a period of fifteen business days from the entry into force of this Resolution. this Resolution, in accordance with the provisions of current legislation,” the resolution indicated.

The Wikipedia description states that Novikombank specializes in financing companies in the heavy machinery, automotive, high-tech, oil and gas industries. The bank is ranked among the 40 largest in Russia and is a member of the deposit insurance system.

The license allows the Russian bank to direct, promote or coordinate the business carried out by its parent company, in freely convertible currency with entities established in the national territory. Also manage, promote or coordinate the execution of correspondent contracts between BCA NOVIKOMBANK SA, Representative Office, and financial entities established in the national territory.

The financial institution was sanctioned by New Zealand in connection with the Russian invasion of Ukraine in 2022.

In December 2023, the United Kingdom subjected the bank to additional sanctions, including a ban on correspondent banking relationships, in addition to freezing assets.

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