US Targets International Bank of Yemen for Supporting the Houthis

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced Thursday sanctioning Yemen-based International Bank of Yemen Y.S.C. (IBY) for its financial support to the Houthi rebels, which is part of the Iran threat network, according to a press release published by the Department.

As part of this designation, the press release added, OFAC is also sanctioning key leaders or officials of IBY, Kamal Hussain Al Jebry, Ahmed Thabit Noman Al-Absi, and Abdulkader Ali Bazara. The designation of IBY complements the whole-of-government effort to stop Iran-backed Houthi attacks against commercial shipping in the Red Sea.

“Financial institutions like IBY are critical to the Houthis’ efforts to access the international financial system and threaten both the region and international commerce,” said Deputy Secretary of the Treasury Michael Faulkender. “Treasury remains committed to working with the internationally recognized government of Yemen to disrupt the Houthis’ ability to secure funds and procure key components for their destabilizing attacks.”

Based in Sana’a, Yemen, the press release added, the International Bank of Yemen Y.S.C. (IBY) is currently controlled by the Iran-backed Houthis and provides the terrorist group access to the bank’s Society for Worldwide Interbank Financial Telecommunications (SWIFT) network to make international financial transactions.

For instance, IBY has aided Houthi-associated businesses and officials to purchase oil through the bank’s access to the SWIFT network. IBY has also facilitated attempts by the Houthis to evade sanctions oversight, and has helped the Houthis to mobilize resources and confiscate assets from Houthi opponents. IBY has refused to comply with CBY – Aden information requests to avoid revealing the details of these Houthi confiscations.