Yemen Central Bank Sanctions 569 Individuals, Entities Linked to Houthi Militia

Yemen's Central Bank has imposed sanctions on 569 individuals, companies, and vessels due to their alleged ties to the Houthi militia or Iran, or for providing financial and commercial facilitation to the militia. This includes entities operating under shell companies or front businesses to conceal their activities and connections to Houthi leadership.

Banking sources revealed that the Yemeni Central Bank issued three directives to banks and exchange companies, prohibiting dealings with the sanctioned individuals and entities and mandating the freezing of their accounts, funds, and assets. These measures are intended to curb the exploitation of the banking sector for financing the activities of the Houthi militia and its financial networks.

One directive contained a list of 445 names, while two others were based on decisions by the Public Prosecutor to add individuals, entities, vessels, and shipping companies to national terrorism and sanctions lists. Financial institutions were instructed to freeze their assets and properties.

The sanctions encompass the freezing and seizure of bank accounts, funds, and assets belonging to the listed individuals and entities, as well as a ban on financial and commercial transactions with them. Financial institutions are also prohibited from opening new accounts for these parties, whether directly or through agents or proxies. The directives require financial institutions to immediately monitor outgoing and incoming transfers linked to these entities and report the data to the Financial Information Unit and the Anti-Money Laundering and Terrorism Financing Department.

Banking sources further indicated that the Public Prosecutor is preparing to issue a new batch of decisions targeting over 120 individuals and companies. This move is expected to expand regulatory oversight on financial and commercial networks associated with the Houthi militia, thereby tightening restrictions on their funding sources and financial movements through the banking sector. The upcoming measures will primarily focus on freezing the operations of exchange networks and financial companies operating in Houthi-controlled areas, suspected of involvement in money laundering and currency speculation.

Additionally, the measures include imposing penalties on banks that violate monetary directives issued by the Central Bank of Yemen in Aden. These actions also aim to prevent the circulation or trading of currency denominations that the Houthi militia attempts to introduce or reintroduce outside the frameworks set by the competent monetary authority. Furthermore, there will be monitoring of internal money transfer flows to prevent their use in illegal taxation and activities that destabilize the financial system.

These steps are part of the Yemeni Central Bank's efforts to enhance supervision of the banking sector, combat money laundering and terrorism financing, and limit the use of companies, commercial fronts, and exchange networks for transferring funds or concealing their origins and destinations. The accuracy of all names and numbers mentioned in the directives could not be independently verified.