InfoBytes Blog
OFAC sanctions network connected to Houthis in Yemen
On February 23, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions pursuant to Executive Order (E.O.) 13224 against members of an international network for funding the Houthis’ war against Yemen and threatening civilians and infrastructure in neighboring states. According to OFAC, the group is led by Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and a Houthi financier, which has transferred money to Yemen via a complex international network of intermediaries in support of the Houthis’ attacks. As previously covered by InfoBytes, in June 2021, OFAC designated the Houthi financier and members of his network pursuant to E.O. 13224, for their role in generating revenue through the sale of commodities such as petroleum to fund the Houthis. OFAC also noted that “the Houthis continue their destructive campaign inside Yemen, and have repeatedly launched ballistic missiles and unmanned aerial vehicles that have struck civilian infrastructure in neighboring states, resulting in civilian casualties.” As a result of the sanctions, all property and interests in property belonging to the sanctioned individuals, and “any entities that are owned, directly or indirectly, 50 percent or more” by the individuals that are subject to U.S. jurisdiction are blocked and must be reported to OFAC. OFAC’s announcement further noted that OFAC regulations “generally prohibit” U.S. persons from participating in transactions with designated persons or their blocked property, and foreign financial institutions that knowingly participate in significant transactions related to the designated individuals risk exposure to sanctions that could discontinue their access to the U.S. financial system or block their property or interests in property under U.S. jurisdiction.