Supporters of the Houthi movement rally to denounce air strikes launched by the U.S. and Britain on Houthi targets, in Sanaa, Yemen January 12, 2024. REUTERS/Khaled Abdullah
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on Yemen Kuwait Bank for Trade and Investment Y.S.C for providing financial support to the Houthis, who continue to threaten shipping lanes and U.S. interests in the Red Sea.
“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,” said acting Under Secretary Bradley T. Smith.
The sanctions are part of a broader U.S. strategy to disrupt the financial networks supporting Houthi attacks on shipping, naval forces, and Israel, building upon previous actions targeting Houthi-affiliated exchange houses and international finance networks that channel Iranian petroleum sale proceeds to the militant group.
Investigation revealed that Yemen Kuwait Bank has played a crucial role in helping the Houthis establish and finance front companies, facilitating Iranian oil sales in coordination with already-sanctioned entities. The bank has been instrumental in laundering money and transferring funds to Houthi allies, including Lebanese Hizballah.
The designation, effective under Executive Order 13224, comes after the U.S. State Department’s classification of Ansarallah (Houthis) as a Specially Designated Global Terrorist organization back in February 2024. Under these sanctions, all U.S.-based assets of Yemen Kuwait Bank are now frozen, and American persons are prohibited from conducting transactions with the institution.
Financial institutions worldwide are now on notice that engaging with Yemen Kuwait Bank could result in secondary sanctions, potentially restricting their access to the U.S. financial system.
The sanctions comes after ceasefire agreement between Israel and Hamas announced this week could signal the beginning of the end for Houthi attacks on commercial shipping in the Red Sea.
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