The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has placed sanctions on the Yemen-based International Bank of Yemen Y.S.C. (IBY). The sanctions are due to the bank's financial support to the Houthis, also known as Ansarallah, a group within the Iran threat network. Alongside IBY, three key figures of the bank, Kamal Hussain Al Jebry, Ahmed Thabit Noman Al-Absi, and Abdulkader Ali Bazara, have been sanctioned to complement efforts against Iran-backed Houthi attacks on commercial shipping in the Red Sea.
Deputy Secretary of the Treasury Michael Faulkender stated, “Financial institutions like IBY are critical to the Houthis’ efforts to access the international financial system and threaten both the region and international commerce.” He added that the Treasury is intent on disrupting the Houthis' ability to secure funds and procure components for their destabilizing activities, in collaboration with the internationally recognized government of Yemen.
This action follows the January 17, 2025, designation of Yemen Kuwait Bank for Trade and Investment Y.S.C. and further aims to hinder the Houthis' exploitation of Yemen's banking sector. It reinforces Treasury's support for the internationally recognized Yemeni government’s sovereignty over its banking system.
OFAC's measures fall under the counterterrorism authority of Executive Order 13224, marking Ansarallah's contentious financial operations as materially assisted, sponsored, or provided for by IBY. The U.S. Department of State labeled Ansarallah as a Specially Designated Global Terrorist (SDGT) on February 16, 2024, and re-designated it as a Foreign Terrorist Organization (FTO) on March 4, 2025, as per the Immigration and Nationality Act’s section 219.
IBY is based in Sana’a, Yemen, operating under Houthi control, and facilitates access to financial systems like the SWIFT network, conducting transactions on behalf of Houthi-affiliated businesses and officials, such as buying oil. The bank’s reluctance to relocate from Houthi-controlled areas or comply with Central Bank of Yemen – Aden's requests further illustrates its resistance to external oversight.
As part of the sanctions, all property and interests of the sanctioned individuals within the U.S. or held by U.S. entities are blocked and must be reported to OFAC. It limits transactions involving these entities unless authorized. Violations carry civil and criminal penalties.
Engagement in transactions with the sanctioned parties risks secondary sanctions under the amended Executive Order 13224. OFAC's sanctions strength is derived from both designation power and the potential removal of entities from its list upon lawful compliance.
For more and specific information on IBY and the designated individuals, further details are available.
