US Treasury Maintains Pressure on Houthi Procurement and Financing Schemes

Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a dozen individuals and entities based in multiple jurisdictions, including the head of the Houthi-aligned Central Bank of Yemen branch in Sana’a, for their roles in trafficking arms, laundering money, and shipping illicit Iranian petroleum for the benefit of the Houthis. Among the persons designated today are key smuggling operatives, arms traffickers, and shipping and financial facilitators who have enabled the Houthis to acquire and transport an array of dual-use and weapons components, as well as generate revenue to support their destabilizing regional activities. Additionally, OFAC identified five cryptocurrency wallets associated with Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF)-backed Houthi financial official Sa’id al-Jamal (al-Jamal), who operates under the aliases “Khrpi,” “Ahmad Sa’idi,” and “Hisham,” among others.

“Today’s action underscores our commitment to leveraging all our tools to disrupt the Houthis’ efforts to acquire weapons, procure dual-use components, and secure additional revenue,” said Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith. “The United States will continue to expose these schemes and will hold accountable those who seek to enable the Houthis’ destabilizing activities.”

Today’s action is being taken pursuant to the counterterrorism authority, Executive Order (E.O.) 13224, as amended. The U.S. Department of State’s designation of Ansarallah (commonly known as the Houthis) as a Specially Designated Global Terrorist (SDGT), pursuant to

E.O. 13224, as amended, became effective on February 16, 2024. OFAC designated al-Jamal pursuant to E.O. 13224, as amended, on June 10, 2021, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the IRGC-QF. OFAC designated the IRGC-QF pursuant to E.O. 13224 on October 25, 2007, for providing material support to multiple terrorist groups.

Senior houthi financial officials AND EXCHANGE HOUSES

Hashem Ismail Ali Ahmad al-Madani (al-Madani), governor of the Houthi-aligned central bank in Sana’a, Yemen, serves as a key figure in the Houthi movement. Al-Madani is the primary overseer of funds sent to the Houthis from the IRGC-QF and has cooperated with IRGC-QF-backed Houthi financial official al-Jamal to conduct business activities for the benefit of the Houthis.

Ahmed Muhammad Muhammad Hasan al-Hadi (al-Hadi) is a senior Houthi financial official who coordinates and facilitates the movement of Houthi funds on the group’s behalf. Al-Hadi has ordered other Houthi financial officials, including al-Jamal, to move funds for the group and tasks them with disbursing funds to Houthi officials and other individuals in Yemen.

Al-Madani is being designated pursuant to E.O. 13224, as amended, for having acted or purported to act for or on behalf of, directly or indirectly, the Houthis. Al-Hadi is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the Houthis.

The Houthis have used Sana’a-based money services businesses under their control to move large sums and circumvent sanctions. Mohammed Ali Al Thawr Exchange (Al Thawr Exchange), under the supervision of U.S.-designated Houthi finance official Abdullah al-Jamal, has brought millions of dollars on behalf of the al-Jamal network into Yemen to enable money laundering operations with the IRGC-QF. Similarly, Khaled Al Hazmi and Brother Company General Partnership (Al Hazmi Exchange) transferred funds to U.S.-designated, al-Jamal-controlled Davos Exchange and Remittances Company (Davos Exchange) in early 2024 to cover Davos Exchange’s sanctioned assets and help the al-Jamal network circumvent sanctions.

Al Thawr Exchange and Al Hazmi Exchange are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, al-Jamal.

In addition to using money services businesses to access funding abroad, al-Jamal’s network has also used cryptocurrency to circumvent sanctions. Today, OFAC has added five wallet addresses used by al-Jamal and his network to the Specially Designated Nationals and Blocked Persons List (SDN List) to disrupt these financial flows.

HOUTHI Weapons Smuggling Operatives and Shipping Facilitator

Houthi operatives located in Yemen and the People’s Republic of China (PRC) play crucial roles in facilitating the movement of weapons and dual-use components into Yemen. Yemen-based Wail Muhammad Said Abd-al-Wadud (Al-‍Wadud) is a Houthi logistics official who has been involved in facilitating Houthi smuggling operations. Umar Ahmad Umar Ahmad Hajj (Umar) is a Houthi logistics official who, alongside Al-Wadud, has facilitated Houthi smuggling activities through Somalia.

Houthi procurement operatives leverage an array of shipping firms with offices in Yemen and the PRC to transport illicit procurements to Houthi fighters. One such firm, Safwan Al-Dubai Company of Shipping and Trade (Safwan Al-Dubai), is a Yemen-based shipping and logistics company that Houthi procurement officials have used to import dual-use items and other weapons components into Yemen. Safwan Al-Dubai maintains a presence in the PRC, which it likely uses to obfuscate weapons shipments to Houthi forces.

Al-Wadud and Umar are being designated pursuant to E.O. 13224, as amended, for having acted or purported to act for or on behalf of, directly or indirectly, the Houthis. Safwan Al-Dubai is being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the Houthis.
HOUTHI ILLICIT SHIPPING FACILITATORS

Al-Jamal generates revenue for the Houthis through the illicit sale of Iranian petroleum to customers in East Asia. Al-Jamal’s oil shipments are enabled by a network of shipping firms in Malaysia that provide critical services to ships transporting this cargo. Malaysia-based companies Blu Shipping (M) SDN BHD (Blu Shipping) and Tefcas Marine SDN BHD (Tefcas Marine) provided services to the U.S.-sanctioned vessel RENEEZ (IMO 9232450), which has transported tens of thousands of metric tons of Iranian commodities for al-Jamal’s network.

Merkur Energy Port Services SDN BHD (Merkur Energy) served as the port agent for another U.S.-designated vessel, the YORGOS (IMO 9150365), which has also transported Iranian commodities for al-Jamal’s network. Puvaneswaran Venayagamoorthy (Venayagamoorthy) is the sole owner and executive of Merkur Energy. Ezekial Kanniappan Jr (Kanniappan), who serves as Merkur Energy’s head of operations, assisted in providing services to the YORGOS.

Merkur Energy, Blu Shipping, and Tefcas Marine are being designated pursuant to E.O. 13224, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, al-Jamal. Venayagamoorthy is being designated pursuant to E.O. 13224, as amended, for owning or controlling, directly or indirectly, Merkur Energy. Kanniappan is being designated pursuant to E.O. 13224, as amended, for having acted or purported to act for or on behalf of, directly or indirectly, Merkur Energy.