The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has announced its largest action to date against Ansarallah, also known as the Houthis, a group backed by Iran. This move targets four individuals, 12 entities, and two vessels involved in importing oil and other illicit goods to support the terrorist organization.
Deputy Secretary of the Treasury Michael Faulkender stated, "The Houthis rely on a series of front companies and trusted facilitators to clandestinely generate revenue, procure weapons components, and advance their reign of terror in partnership with the Iranian regime." He emphasized that this significant action aims to disrupt the financial and shipping networks that enable Houthi activities in the Red Sea region.
This measure is taken under Executive Order 13224 and follows previous actions targeting Houthi leaders and operatives. The U.S. Department of State designated the Houthis as a Specially Designated Global Terrorist group effective February 16, 2024.
The sanctioned entities include several Yemen-based companies such as Black Diamond Petroleum Derivatives, Star Plus Yemen, Tamco Establishment for Oil Derivatives, Royal Plus Shipping Services and Commercial Agencies, Yahya Al-Usaili Company for Import Limited, Gasoline Aman Company for Oil Derivatives Imports, Azzahra Establishment for Commerce and Agencies, Yemen Elaph Petroleum Derivatives Import, Abbot Trading Co., Ltd., among others. These companies are accused of facilitating oil sales that fund Houthi operations.
Zaid Al-Washli is identified as managing key Houthi-controlled ports like Hudaydah and Al-Salif. He is involved in coordinating weapons procurement efforts on behalf of the Houthis.
Additionally, three vessels were identified for discharging refined petroleum products at Houthi-controlled ports after sanctions had expired. Best Way Tanker Corp., Ocean Voyage LLC facilitated gasoline delivery via Valente vessel; Atlantis M. Shipping Co used Atlantis MZ vessel; while Sarah was previously known as Tulip BZ.
All property linked to these designated or blocked persons within U.S jurisdiction is now frozen. Violations could lead to civil or criminal penalties under OFAC regulations which prohibit transactions involving blocked persons without authorization from OFAC itself.
OFAC emphasizes that sanctions aim not just at punishment but encouraging positive behavioral change through removal processes from lists like SDN when warranted by law compliance improvements over time.
