The EU Blocking Statute, designed to protect EU companies from the extraterritorial effects of certain U.S. sanctions laws, also applies to the EU banking system. However, some EU banks have been accused of violating the Statute by blocking transactions with Cuba or with the word “Cuba” in the transaction description, thereby illegally complying with U.S. sanctions.
Despite the EU’s efforts to protect its economic interests and uphold international law, some EU banks have chosen to prioritise compliance with U.S. sanctions over the EU Blocking Statute. This has led to criticism that the Statute has been underutilised and that EU companies continue to comply with U.S. sanctions, thereby undermining the EU’s efforts to protect its economic interests.