By Timothy S. Donahue
Top Takeaways:
Banking pressure: Several European Habanos distributors reportedly had their accounts closed or financing limited.
De-risking trend: Banks point to sanctions exposure and “de-risking” policies, even when there are no direct legal violations.
Supply chain risk: The situation raises concerns about the stability of payment flows and distribution in the Cuban cigar market.
European distributors of Cuban cigars are facing mounting banking pressure, with several companies reportedly losing access to financial services amid growing scrutiny tied to sanctions risk.
Several sources say distributors, including Laguito 1492 (Benelux) and Fifth Avenue (Germany, Austria, Poland), have had their bank accounts unilaterally closed in recent weeks, highlighting what industry participants describe as an accelerating “de-risking” trend across the financial sector.
According to L’Amateur de Cigare, The issue seems partly linked to the complex ownership structure of Habanos S.A. and longstanding U.S. sanctions on Cuba. While businessman Chen Zhi—connected to the Habanos distribution network—is not officially sanctioned by the European Union, banks are increasingly acting early to limit exposure.
“We work with several banks, so we are still able to process payments without interruption,” one European distributor said, speaking on condition of anonymity to L’Amateur de Cigare.
Chen Zhi, a 38-year-old Chinese national accused by U.S. authorities of leading a multibillion-dollar criminal enterprise, was arrested in early January in Cambodia and transferred to China, where he is expected to face investigations into bribery, money laundering, and other alleged offenses.
In Spain, Tabacalera SLU—the exclusive Habanos distributor and co-shareholder in Habanos S.A.—has also faced financial challenges. Although the company declined to confirm account closures, Spanish media previously reported that banks have refused short-term financing due to concerns over shareholder exposure.
Tabacalera stated earlier that legal measures, including pre-insolvency proceedings started in late 2025, were meant to “protect the company’s banking relationships and ensure operational continuity.”
Industry participants say the situation reflects a broader financial practice known as “de-risking,” where banks cut ties with clients considered to pose regulatory or reputational risks—even without direct legal violations.
A spokesperson for Belgium’s financial sector federation, Febelfin, highlighted the impact of U.S. sanctions on global banking practices. “Any contact with a designated person or entity is prohibited… This constraint is further reinforced by the extraterritorial reach of U.S. sanctions,” the group said, noting that banks exposed to the U.S. dollar system must consider the risk of secondary sanctions.
For distributors, the lack of transparency about these decisions creates additional uncertainty. “Bank compliance is an enormous black box,” one distributor said. “There is no transparency… When we ask for explanations, the commercial teams simply tell us, ‘We can no longer work with you because your file is flagging orange or red.’”
Industry sources say efforts are underway to reshuffle ownership ties related to Chen Zhi, though timelines are still uncertain. In the meantime, distributors are working to keep alternative banking relationships to ensure ongoing operations.
