U.S. Department of the Treasury’s OFAC sanctions Yemen Kuwait Bank for financial support to Ansarallah

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated Yemen-based Yemen Kuwait Bank for Trade and Investment Y.S.C. (Yemen Kuwait Bank) for providing financial support to Ansarallah, also known as the Houthis, under the counterterrorism authority in Executive Order 13224, as amended. The designation blocks all property and interests in property of Yemen Kuwait Bank that are in the United States or in the possession or control of U.S. persons, and generally prohibits U.S. persons and U.S.-nexus transactions involving the bank absent OFAC authorization or an exemption; entities owned 50% or more by blocked persons are also blocked. Treasury alleged the bank helped the Houthis exploit Yemen’s banking sector to launder money and transfer funds, including to allies such as Lebanese Hizballah, and supported Houthi front companies used to facilitate Iranian oil sales in coordination with sanctioned Houthi-associated money exchange Swaid and Sons for Exchange Co.; the release also referenced Houthi financial links involving the Islamic Revolutionary Guard Corps-Qods Force and sanctioned Houthi-aligned central bank official Hashem Ismail Ali Ahmad al-Madani. OFAC noted potential civil or criminal penalties for sanctions violations and warned of secondary sanctions risk, including potential restrictions on correspondent or payable-through accounts for foreign financial institutions that knowingly facilitate significant transactions on behalf of a Specially Designated Global Terrorist.