P.T.O.C.Yemen Report Exposes Houthi Secret Financial Network Spanning 200 Companies

A groundbreaking report by the P.T.O.C.Yemen Center for Research and Specialized Studies has uncovered a clandestine financial network established by the Iranian-backed Houthis. This network, comprising approximately 200 companies, is designed to fund the group’s military operations and expand its economic and political influence through a parallel economy.

Titled "The Houthis' Secret Financial Entities," the report’s third installment reveals that the Houthis have registered these companies under the names of loyalists or individuals closely tied to their leadership. This strategy allows them to bypass international sanctions and restrictions imposed on entities associated with the group. The network has been operational since the Houthis seized control of the capital, Sanaa, and several provinces in September 2014, followed by the escalation of conflict in March 2015.

These companies operate across critical sectors, including currency exchange, trade, import and export, real estate, and energy, exploiting the absence of government oversight caused by the ongoing war.

Currency Exchange: A Hub for Shadow Economy

The currency exchange sector has become a cornerstone of the Houthis’ shadow economy. The group has established a network of exchange companies operating beyond the reach of official financial oversight. This setup enables large-scale money laundering and facilitates the transfer of funds both domestically and internationally, evading regulatory scrutiny.

The Organized Crime and Money Laundering Tracking Platform in Yemen, an initiative of the P.T.O.C.Yemen Center, has been working tirelessly to expose and document these illegal activities. The platform aims to shed light on the Houthis’ methods of building their secret financial system, which undermines Yemen’s official economy and replaces it with one entirely under their control.

Exploitation of Key Sectors

The report highlights the Houthis’ exploitation of the pharmaceutical sector, where they have established affiliated import and distribution companies while imposing restrictions on competitors. This monopolistic approach allows them to generate massive profits by inflating prices and controlling supply chains.

Additionally, the group has taken control of ports and customs outlets in areas under their influence, imposing illegal taxes and fees on imports. These measures provide a significant source of income and facilitate the smuggling of funds, goods, and even weapons to support their military operations.

The platform relies on a variety of sources, including leaked documents, banking reports, trusted financial sector insiders, and in-depth investigations, to uncover these covert activities. The updated list of companies reveals the extent of the Houthis’ infiltration into Yemen’s national economy and their ability to divert resources for their benefit, exacerbating the suffering of ordinary citizens.

The report identifies Ibrahim Mohsen Ali Al-Najjar (Ibrahim Mohsen Al-Suwaidi) as a central figure in the Houthis’ financial operations. Al-Suwaidi played a pivotal role in acquiring MTN Yemen and transferring its ownership to Houthi-affiliated entities without raising suspicion. The company was subsequently renamed "Yemen Oman Telecommunications Company" (YOU). As chairman of the board, Al-Suwaidi ensured the telecommunications sector remained under Houthi control, using it as a key revenue stream through commissions from subscribers and digital services.

Al-Suwaidi collaborates closely with Ismail Mohammed Abdullah Al-Akoua, a Yemeni national with German citizenship. Together, they manage joint investments, including a chain of restaurants and various commercial projects. Frequent financial transfers through international banking networks and exchange offices further underscore the global reach of their operations.

The P.T.O.C.Yemen report paints a stark picture of the Houthis’ extensive financial network, which thrives on exploitation, monopolization, and illicit activities. By infiltrating key sectors and evading international sanctions, the group continues to strengthen its grip on Yemen’s economy, perpetuating the country’s instability and humanitarian crisis.