This Monday, Cuban regime inspectors carried out a crackdown at the Aguilera Cultural Plaza, a bustling commercial hub in Santiago de Cuba commonly referred to as "the Subway." Several self-employed workers were penalized for not enabling electronic transfer payments.
The fines start at 16,000 Cuban pesos, a substantial sum for small business owners. These entrepreneurs highlight a fundamental contradiction: while the government mandates digital payments, many suppliers demand cash or foreign currency for the goods these businesses need to restock.
The operation was reported by independent journalist Yosmany Mayeta Labrada, who shared images of inspectors moving through the area, jotting down notes, and engaging with vendors.
Challenges for Small Businesses
The Aguilera Cultural Plaza hosts numerous stalls under simple tents and structures where clothes, shoes, and household items, among other products, are sold.
Mayeta Labrada questioned, "How can they be forced to accept money through transfers when much of the merchandise they need to restock must be purchased with cash or foreign currency?" This encapsulates a key issue faced by small businesses amid the government's push for banking reform: receiving money in an account does not ensure they can access the cash needed to keep their operations running.
Government's Banking Push and Cash Scarcity
The scrutiny in Santiago de Cuba is not an isolated incident. Throughout August, authorities have ramped up operations against private businesses for non-compliance with pricing, documentation, and electronic payment methods.
On August 14, a day of inspections in Centro Habana resulted in 232 businesses being audited, with 363 fines, 15 closures, and 11 forced sales. In Sancti Spíritus, between August 4 and 15, authorities issued over 200 fines and mandated at least five closures.
The crackdown on establishments not adhering to banking rules dates back several years. Official data released by the Granma newspaper in 2025 indicated 15,240 fines and 269 closures of establishments for irregularities found during inspections.
One of the most significant contradictions of the government's strategy lies here. While the state demands that businesses accept electronic transfers and other digital means, withdrawing money from banks has become increasingly challenging for Cubans.
Efforts to Alleviate Cash Shortage
In June, the Metropolitan Bank reduced the withdrawal limit in Havana from 5,000 to 3,000 pesos per transaction, amidst a context where over half of the capital's ATMs were out of service.
The situation prompted the Central Bank of Cuba (BCC) to announce extraordinary measures to address the cash shortage, including the introduction of 2,000 and 5,000 peso bills and the temporary removal of certain cash payment limits.
However, these measures have not resolved a liquidity crisis that continues to affect both consumers and businesses.
Allegations of Unequal Treatment
Reports about the operation in Santiago de Cuba also highlighted a common complaint: the apparent unequal enforcement of regulations.
Social media users claimed that at least two micro and small enterprises in the Aguilera area also did not accept transfers but were not penalized during the inspection. "Those must have good connections," one user commented.
Others argued that authorities should enforce the same standards on wholesale suppliers, as many of them also refuse electronic payments.
For self-employed workers, the issue forms a difficult cycle: the state demands digital payments, yet their suppliers require cash; meanwhile, banks cannot always provide the needed cash.
One user pointed out the irony in the penalties imposed by inspectors: "Can those fined now pay their fines through transfer? Because that's another paradox of this situation," they mused.
The government's banking reform program was launched in August 2023 with the stated aim of reducing cash usage, expanding electronic payments, and increasing control over economic flows.
Three years on, authorities continue striving to extend it through inspections, fines, and closures, while basic issues persist that hinder its implementation in everyday life.
The scarcity of cash, malfunctioning ATMs, withdrawal restrictions, and a supply market where numerous suppliers demand physical payments place small business owners in a particularly challenging position.
Frequently Asked Questions About Santiago de Cuba's Payment Policies
What are the recent penalties for not accepting electronic payments in Santiago de Cuba?
Recent penalties in Santiago de Cuba for not accepting electronic payments start at 16,000 Cuban pesos, targeting small business owners who lack electronic payment systems.
Why is it difficult for small businesses in Cuba to comply with electronic payment requirements?
Small businesses in Cuba struggle with electronic payment requirements due to the reliance on cash transactions by their suppliers, coupled with challenges in accessing cash from banks.
What steps has the Cuban government taken to address cash shortages?
To tackle cash shortages, the Cuban government has introduced higher denomination bills and temporarily lifted certain cash payment limits, although these measures have not fully resolved the liquidity crisis.