Cuba’s Central Bank has announced the suspension of all Visa and Mastercard transactions effective June 6, in a move that underscores the impact of recent U.S. sanctions on the country’s financial sector.

In a statement, the bank said that a foreign partner responsible for processing international card transactions for Cuba decided to scale back its operations after a U.S. executive order issued on May 1 significantly expanded restrictions on commercial activities involving the island.

The Central Bank noted that the decision prevents Cuba from receiving revenue from the sale of goods and services through internationally recognized payment cards such as Visa and Mastercard, potentially affecting key sectors including tourism, trade, and services.

The measure comes as Cuba continues to face mounting economic challenges, including a shortage of foreign currency and declining tourism revenues, prompting authorities to seek alternative payment channels to support cross-border transactions.

Historically, international credit card transactions in Cuba were handled through a partnership between a foreign bank and Fincimex, the financial arm of the military-linked conglomerate GAESA, which remains subject to U.S. sanctions.

The United States has accused GAESA of controlling profits from several strategic sectors of the Cuban economy, including tourism, remittances, financial services, and logistics, and of using those revenues to support the country’s military establishment and ruling elite.