Canadian Financial Group Linked to Castro Family Approved to Serve Cuban SMEs

The Central Bank of Cuba has given the green light for the establishment of Novabank S.A., a financial entity described as a "fully foreign-owned corporate bank." This marks the first of its kind in the nation authorized to provide services to small and medium-sized enterprises (SMEs). According to Resolution 28/2025, two entities are listed as the "owners" of the bank: Les Fonds Generation Nova Inc. and Groupe Novinvest Inc., both newly created and associated with the business of Mario and Nancy Lussier, known as Terracam Équipement International, as noted by economist Pedro Monreal.

Independent media outlet Cubanet disclosed in a Friday report that these entities were established in May 2022 by the couple with ties to the Castro family. Both companies are registered in Quebec and share the same address: 1341 B, rue Principale, Sainte-Julie. The extraordinary edition of the Official Gazette states that Novabank will provide services to legal entities, including "banks and financial institutions, joint ventures, entities involved in international economic association contracts, foreign-capital Cuban firms, foreign companies, state enterprises, legally recognized non-state sector businesses (such as cooperatives and SMEs), diplomatic missions, and international organizations."

Novabank's operations will include account opening, maintaining foreign currency deposits, providing related banking services with smooth and secure payments, conducting financial transactions, receiving and granting loans or other credit forms, and offering payment services associated with granted financing.

The Lussier Group's Deep Ties with Cuba

The Lussier Group, now launching Novabank, has been active in Cuba for nearly 30 years through Terracam. Nancy Lussier, who serves as the vice president, is also the president of the Canada-Cuba Chamber of Commerce and Industry (CCICC) since 2016, noted for her staunch support of the Castro regime, as highlighted by Cubanet. She has played a pivotal role in forming the so-called Cuba Solidarity Groups in Quebec and founded Rebus Pay, a remittance company to Cuba, having signed a contract with Orbit S.A. in 2023 to establish a digital wallet.

Given these connections, the independent media suggests Novabank S.A. might act as a front for Scotiabank, possibly circumventing U.S. banking sanctions. They stress that Carlo de Benedictis, a key representative of this bank in Cuba for years, is also a member of the CCICC and part of its Board of Directors.

Economic Implications and Risks

Until 2022, the Lussier Group concentrated its Cuban endeavors on the transportation equipment sector, as Pedro Monreal recalls. This background shows that Novabank is a newcomer to banking activities, "lacking large-scale financial backing but with experience in business with Cuban state entities and government access." Though the regime celebrates this new entity, economists warn that the Canadian company serves as a means to alleviate the state's foreign currency liquidity crisis. "In terms of possible currency credits to SMEs, different types of credit risks (such as default, exposure, collateral) would exist. Would there be a viable mechanism for collateral or other forms of guarantees?" Monreal questions.

Back in 2018, Nancy Lussier, as the president of the Canada-Cuba Chamber of Commerce and Industry, commented that the Island was the most significant commercial market in the Caribbean for Canada. "We've seen an increased interest from Canadian entrepreneurs in the Cuban market; therefore, we train companies and manage trade missions to seize these opportunities," she said at the time.

However, amid the current liquidity crisis, the Cuban government has withheld foreign currency from several foreign companies, raising questions about the true intention behind the new bank's opening in Cuba. As an alternative for foreign businesses, the regime proposed opening a new type of foreign currency bank account on the island, but these accounts only accept new capital. This means companies cannot transfer money from frozen accounts; only transfers from abroad are accepted. Some companies, particularly those linked to GAESA, are already utilizing these accounts.