Yemen Kuwait Bank Sanctioned For Funding Houthi Attacks & Illegal Iranian Oil Trade

The U.S. Department of the Treasury has imposed sanctions on Yemen Kuwait Bank for helping the Houthis, a group designated as a terrorist group by the U.S.

The Houthis have been attacking U.S. military personnel and disrupting shipping in the Red Sea.

Bradley T. Smith, Acting Under Secretary of the Treasury, said the Houthis use banks like Yemen Kuwait Bank to get access to the global financial system and fund their attacks.

He added that the U.S. is working to stop these financial channels and protect Yemen’s banking sector from Houthi influence.

Yemen Kuwait Bank has been linked to illegal activities, including money laundering and transferring funds to the Houthis and their allies, like the Lebanese group Hizballah.

The bank has also helped the Houthis set up front companies to sell Iranian oil, further supporting their operations.

The U.S. has already sanctioned exchange houses and financial networks linked to the Houthis, especially those involved in Iranian oil sales.

The U.S. State Department had already labelled the Houthis as a Specially Designated Global Terrorist group in February 2024.

After the new sanctions, Yemen Kuwait Bank’s U.S. assets are frozen, and U.S. citizens and businesses are banned from doing business with the bank. Financial institutions around the world are also at risk of sanctions if they continue transactions with the bank.

Since November 2023, they have attacked over 100 vessels, sinking ships, seizing others, and killing several seafarers. These attacks have forced ships to avoid the Suez Canal, increasing delivery costs and contributing to global inflation.

The U.S. and the U.K. have launched operations to protect shipping in the Red Sea, and U.S. airstrikes have targeted Houthi weapons to stop their attacks.

Reference: U.S. Treasury

Source: Maritime Shipping News