Why Cuban Americans Are Facing Bank Account Closures

Recently, a number of Cuban expatriates living in the United States have been receiving alarming messages and letters from their banks, particularly from larger financial institutions. These communications warn that their accounts might be frozen or even closed unless they update their immigration status. This situation has caused widespread panic and confusion. What is causing these alerts, and what lies behind them?

To begin with, it is important to understand the legal background: Cuba remains under stringent US sanctions, compelling banks to enforce rigorous controls when dealing with Cuban nationals or transactions that might be linked to the island. Additionally, the second Trump administration aggressively tightened immigration policies, casting a wide net of suspicion over large immigrant groups, including Cubans.

Essentially, banks are wary of breaching sanctions and of falling out of favor with a government that has made immigration a primary target for control and enforcement. As a result, they are engaging in what is known in the industry as "de-risking," which involves shutting down accounts deemed risky to avoid potential repercussions from the Treasury Department or immigration authorities.

What Are Banks Scrutinizing?

The primary areas of scrutiny include:

• Whether the client is a Cuban citizen or resident.
• Whether they are legally present in the US at this time.
• Any potential connections to Cuban entities restricted by the US government.

These checks particularly affect those under parole and I-220A status. Under the Biden administration, hundreds of thousands from Cuba, Haiti, Nicaragua, and Venezuela entered the US with humanitarian parole, granting them temporary status and work permits. The second Trump administration moved to revoke these protections en masse, announcing the end of the CHNV program and the early termination of parole for over half a million people. The Supreme Court has allowed these actions to proceed while litigation is ongoing. Once parole is canceled, affected individuals are no longer clearly "legally present," leaving them in a precarious position or even subject to deportation.

For banks, this situation is precarious. A client who once appeared in the system with valid parole and a work permit may now lack a clear status. Compliance algorithms and risk teams flag these accounts as problematic, especially in a political climate where the White House is pushing for stricter immigration enforcement. This leads to mass notifications asking clients to update their status and preventive account blocks until clients can show alternative protection or ongoing processes.

The I-220A Dilemma

The issue of I-220A further complicates matters. Many Cubans entered through the border and received this "supervised release" document, which is neither a classic parole nor a fully irregular stay. For years, they have been in limbo: not detained, but without a stable status. Recent court decisions in 2025 have begun recognizing that many with I-220A can be treated similarly to parole for immigration purposes, opening pathways like the Cuban Adjustment Act. However, the Trump administration has simultaneously intensified detentions of Cubans with I-220A during ICE checks and targeted them as part of their broader anti-immigration campaign.

From a banking perspective, a client with I-220A generates significant regulatory noise. There is uncertainty about their length of stay, potential detention or deportation, and whether their situation meets the "legally present" requirement for unrestricted account use. Faced with this ambiguity, many banks opt to protect themselves by blocking, requesting additional documentation, or severing ties with clients whose status relies on revoked parole or I-220A.

Impact and Recommendations

The combined effects of these dynamics include:

• More Cubans in fragile statuses (revoked parole, I-220A, uncertain processes).
• A government making immigration a key political and operational target.
• Banks pressured by sanctions, fines, and a political climate that prefer to mitigate risks rather than defend individual clients.

What can affected individuals do?

• Do not ignore bank communications.
• Gather and submit copies of all current immigration documents: work permits, asylum notifications, Cuban Adjustment receipts, parole extensions, etc.
• Always request a written explanation from the bank regarding potential closures, often labeled as a "risk" or "regulatory compliance" issue.
• In severe cases, consult an immigration attorney or a banking sanctions specialist to evaluate whether to contest the decision or switch to another financial institution.

The visible outcome is the alerts, blocks, and closures of accounts that many Cubans are experiencing today. For those caught in this storm, the best defenses are: not ignoring bank communications, providing all possible evidence of current immigration status or processes (asylum, Cuban Adjustment, residency, submitted renewals), documenting each bank decision in writing, and seeking legal advice when necessary, both immigration and financial.

In an environment where the second Trump administration has intensified immigration enforcement and dismantled parole security, demonstrating progress toward residency or already having it is the best way to avoid being perceived as a "risk" by the banking system.