The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated two individuals and five entities for facilitating weapons procurement for Ansarallah, commonly known as the Houthis. Additionally, OFAC has designated one individual and one company, and identified one vessel involved in commodity shipments that fund Houthi weaponry.
This action targets key actors who have enabled the Houthis to generate revenue and acquire materials for advanced weaponry used in ongoing attacks against commercial ships. Since November 2023, the Houthis have deployed unmanned aerial vehicles (UAVs), ballistic missiles, and cruise missiles to attack merchant vessels in the Red Sea and Gulf of Aden, resulting in civilian casualties and significant damage to commercial ships.
“The Houthis’ continued, indiscriminate, and reckless attacks against unarmed commercial vessels are made possible by their access to key components necessary for the production of their missiles and UAVs,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States remains resolved to use the full range of our tools to halt the flow of military-grade materials and funds from commodities sales that enable these destabilizing terrorist activities.”
Today’s action is pursuant to Executive Order (E.O.) 13224, as amended. The U.S. Department of State designated Ansarallah as a Specially Designated Global Terrorist effective February 16, 2024.
**Houthi Procurement Activities in China**
Ali Abd-al-Wahhab Muhammad al-Wazir is a China-based Houthi-affiliated individual procuring materials for manufacturing advanced conventional weapons inside Yemen through his company Guangzhou Tasneem Trading Company Limited. Guangzhou Tasneem is a subsidiary of Hong Kong-based Tasneem Trading Company Limited.
Al-Wazir is designated under E.O. 13224 for acting on behalf of Ansarallah. Guangzhou Tasneem is also designated under E.O. 13224 for providing support to Ansarallah, while Tasneem Trading Company Limited is designated for owning or controlling Guangzhou Tasneem.
**Houthi Procurement Activities in Oman**
Houthi leaders transfer weapons-grade materials into Yemen using import-export firms in third countries like Oman-based International Smart Digital Interface Limited Liability Company (ISDI). ISDI has facilitated the transfer of missile components and other dual-use materials into Yemen with coordination from senior Houthi members.
ISDI is designated under E.O. 13224 for supporting Ansarallah, while its operator Muaadh Ahmed Mohammed al-Haifi is also designated under E.O. 13224 for acting on behalf of ISDI.
**China-Based Suppliers**
The Houthis have sourced critical components from China-based companies such as Ningbo Beilun Saige Machine Co., Ltd., which provides materials critical for manufacturing UAVs and other weapons, and Dongguan Yuze Machining Tools Company Limited, which supplies equipment worth tens of thousands of dollars.
Both companies are designated under E.O. 13224 for supporting Ansarallah.
**Commodity Shipment**
The Cameroon-flagged OTARIA loaded commodities associated with Houthi financier Sa’id al-Jamal in May 2024 to be discharged in Singapore. The vessel managed by UAE-based Stellar Wave Marine L.L.C., captained by Vyacheslav Salyga, carries cargo worth millions.
Stellar Wave Marine L.L.C., Vyacheslav Salyga, and OTARIA are all designated under E.O. 13224 due to their connections with Sa’id al-Jamal.
**Sanctions Implications**
As a result of these designations, all property within U.S jurisdiction belonging to these persons must be reported to OFAC and blocked. Transactions involving these entities are generally prohibited unless authorized by OFAC or exempted by regulation.
Financial institutions engaging with sanctioned entities may face sanctions or enforcement actions themselves. The ultimate goal remains behavioral change rather than punishment through sanctions removal processes outlined by OFAC's guidelines.
For more information on today's designations:
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