The situation in the Red Sea has escalated and the United States has imposed sanctions on Yemen International Bank
The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury recently announced sanctions against the International Bank of Yemen (IBY) and its three senior executives, accusing the bank of providing financial support to the Iran-backed Houthi forces.
This sanction also includes three senior officials of IBY: Chairman of the Board Kamal Hussain Al Jebry, Executive General Manager Ahmed Thabit Noman al-Absi and Deputy General Manager Abdulkader Ali Bazara. According to the sanctions regulations, all assets and property rights of these designated individuals in the United States will be frozen, and U.S. citizens and entities are generally prohibited from conducting transactions with them.
BY refused to move its headquarters from Sanaa, which is controlled by the Houthi, to Aden, despite the efforts made by the Central Bank of Yemen to isolate financial institutions from the influence of the Houthi. The Ministry of Finance stated that these sanctions reflect its ongoing commitment to undermining the financial network that supports commercial attacks at sea in the Red Sea region and its coordination and cooperation with the internationally recognized government of Yemen.
It is worth noting that this sanction is another intensified action following the US's reclassification of the Houthi armed group as a "foreign terrorist organization". For the shipping industry, this means that international Red Sea shipping insurance, risk ratings, port berthing strategies, etc. will all be affected by policy changes.
However, the United Nations has warned that if Yemeni banks were cut off from the SWIFT system, it could have "catastrophic consequences" for the economic and humanitarian situation in Yemen. Yemen is currently facing a severe humanitarian crisis. More than half of its population needs assistance, and over 2 million children are at risk of severe malnutrition.
This sanction also includes three senior officials of IBY: Chairman of the Board Kamal Hussain Al Jebry, Executive General Manager Ahmed Thabit Noman al-Absi and Deputy General Manager Abdulkader Ali Bazara. According to the sanctions regulations, all assets and property rights of these designated individuals in the United States will be frozen, and U.S. citizens and entities are generally prohibited from conducting transactions with them.
BY refused to move its headquarters from Sanaa, which is controlled by the Houthi, to Aden, despite the efforts made by the Central Bank of Yemen to isolate financial institutions from the influence of the Houthi. The Ministry of Finance stated that these sanctions reflect its ongoing commitment to undermining the financial network that supports commercial attacks at sea in the Red Sea region and its coordination and cooperation with the internationally recognized government of Yemen.
It is worth noting that this sanction is another intensified action following the US's reclassification of the Houthi armed group as a "foreign terrorist organization". For the shipping industry, this means that international Red Sea shipping insurance, risk ratings, port berthing strategies, etc. will all be affected by policy changes.
However, the United Nations has warned that if Yemeni banks were cut off from the SWIFT system, it could have "catastrophic consequences" for the economic and humanitarian situation in Yemen. Yemen is currently facing a severe humanitarian crisis. More than half of its population needs assistance, and over 2 million children are at risk of severe malnutrition.
