On January 17, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned the Yemen Kuwait Bank for Trade and Investment Y.S.C. (“Yemen Kuwait Bank”) for providing financial support to Ansarallah, commonly known as the Houthis. The U.S. Department of State designated Ansarallah as a Specially Designated Global Terrorist (“SDGT”) in February 2024. According to OFAC, Yemen Kuwait Bank has provided the Houthis with access to the international financial system enabling the group to engage in destabilizing attacks against U.S. military personnel, U.S. regional partners, and commercial entities in the Red Sea.
This designation was imposed pursuant to the counterterrorism authority, Executive Order 13224, as amended. As a result, all property and interests in property of the designated persons within the United States or within the possession or control of a U.S. person are blocked, and U.S. persons are generally prohibited from engaging in transactions involving a designated person. Entities owned 50 percent or more by one or more blocked persons are also blocked.
OFAC also issued a related general license pursuant to the Global Terrorism Sanctions Regulations (“GTSR”), 31 CFR part 594, to temporarily authorize wind down transactions involving Yemen Kuwait Bank or any entity in which the bank owns a 50 percent or greater interest. These transactions are authorized until February 16, 2025 provided that payments made to block persons are deposited into a blocked account in accordance with the GTSR.
U.S. Department of Treasury Press Release | General License 32