The U.S. Department of the Treasury has announced new sanctions against Yemen Kuwait Bank for Trade and Investment Y.S.C, citing its financial support to Ansarallah, known as the Houthis. The Office of Foreign Assets Control (OFAC) is targeting this bank due to its alleged role in helping the Houthis access international financial systems.
Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, stated that "the Houthis rely on a few key financial institutions like Yemen Kuwait Bank to access the international financial system and finance their destabilizing attacks in the region." He emphasized that "the United States is committed to disrupting these illicit channels."
The recent designation follows previous sanctions aimed at Houthi-affiliated exchange houses and networks involved in channeling proceeds from Iranian petroleum sales to the group. The U.S. government continues its efforts to block Houthi access to both U.S. and global financial systems.
This action is based on Executive Order 13224, which targets entities providing support to terrorist organizations. The State Department's designation of Ansarallah as a Specially Designated Global Terrorist became effective last year.
Yemen Kuwait Bank is accused of assisting the Houthis in money laundering activities within Yemen's banking sector and facilitating front companies for Iranian oil sales. Senior Houthi officials have reportedly played significant roles in transferring funds from Iran's Islamic Revolutionary Guard Corps-Qods Force.
As a result of these sanctions, all property and interests in property linked to Yemen Kuwait Bank within U.S. jurisdiction are blocked. Transactions involving designated persons are generally prohibited unless authorized by OFAC.
Violations could lead to civil or criminal penalties for both U.S. and foreign individuals or entities involved with sanctioned parties. Engaging with designated individuals today may also expose parties to secondary sanctions under Executive Order 13224.
OFAC emphasizes that its sanction powers aim not only at punishment but at encouraging positive behavioral changes among sanctioned entities.
For further details about today's sanctioned individuals and entities, information can be accessed through provided links by OFAC.
