United States designates Cuba's state-owned bank BICSA over its services to Iran's Karafarin Bank

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United States designates Cuba's state-owned bank BICSA over its services to Iran's Karafarin Bank

15 October 2026

The US State Department on 15 October designated Banco Internacional de Comercio, S.A. (BICSA), a Cuban state-owned bank, under Executive Order 14404. Washington said BICSA had served Iran's Karafarin Bank, which the US sanctioned in 2020, since at least 2022. The Office of Foreign Assets Control (OFAC) of the Treasury Department issued guidance on the designation. OFAC said it will not target foreign banks that wind down their dealings with BICSA by 14 November 2026. US persons were already barred from dealing with the bank under the Cuban Assets Control Regulations, the core of the US embargo rules. Humanitarian and diplomatic transactions can still be authorised under general licences.

Bank designated: Banco Internacional de Comercio, S.A. (BICSA) Legal basis: Executive Order 14404 Iranian bank linked: Karafarin Bank Wind-down deadline for foreign banks: 14 November 2026

Why it matters for exams: OFAC, the Treasury office that runs US sanctions, and the Cuban Assets Control Regulations behind the embargo are standard International Relations and economy facts.

Kerala PSCUPSC

15 October 2026 Source: US Treasury, Office of Foreign Assets Control (FAQ 1276)

In plain words

OFAC Office of Foreign Assets Control — The US Treasury office that administers and enforces economic sanctions.

BICSA Banco Internacional de Comercio, S.A. — A Cuban state-owned commercial bank.

CACR Cuban Assets Control Regulations — The US rules, in 31 CFR part 515, that carry out the embargo on Cuba.

Designation Sanctions designation — Adding a person or entity to a sanctions list so that its assets are blocked.