Financial Crime World

Yemen’s Financial Intelligence Unit Cracks Down on Financial Crime with US-Aided Support

A Major Boost in the Fight Against Financial Crime

Aden, Yemen - The Yemen’s Financial Intelligence Unit (FIU) has published its second annual report, highlighting significant strides made in combating terrorist financing and money laundering. This milestone marks a major boost to the country’s fight against financial crime and demonstrates the successful collaboration between the FIU and the US Agency for International Development’s (USAID) Economic Recovery and Livelihoods Program (ERLP).

Establishment of the Financial Intelligence Unit

Established in 2019, the FIU serves as a central hub for receiving, analyzing, and disseminating financial intelligence related to suspicious transactions and activities. Since 2020, USAID ERLP experts have been working closely with the FIU’s head, Mr. Basem Dabwan, and his team to establish the foundation for the Unit to function effectively and align its oversight activities with international anti-money laundering/counter financing of terrorism (AML/CFT) initiatives.

Key Accomplishments

  • The report showcases the FIU’s efforts in identifying patterns, trends, and anomalies within financial data that may indicate connections to criminal and terrorist activities.
  • USAID ERLP has enhanced the Unit’s financial intelligence capabilities, demonstrating its commitment to fostering regulatory compliance and integrity within Yemen’s financial system.
  • Key amendments have been made to Yemen’s AML/CFT law to meet Financial Action Task Force (FATF) standards.

Strengthening Regulatory Compliance

The Central Bank of Yemen (CBY) has distributed two circulars to banks and financial institutions, requiring them to: * Classify clients according to risks posed * Submit detailed annual reports evaluating any such risks they had been exposed to and related mitigation strategies USAID ERLP supported the establishment of a five-person AML/CFT unit within the CBY to oversee inspections of banks and exchange houses.

Adoption of AML/CFT Procedures

The FIU has adopted AML/CFT procedures and mitigation measures related to foreign exchange (FX) auctions, providing a major additional incentive for bank compliance with reporting requirements. USAID ERLP has proactively assisted the Unit in publishing its first annual report and expanding its national and international network through Memoranda of Understanding (MOUs) with other authorities.

Capacity Development Programs

Targeted capacity development programs have been conducted to enhance the FIU’s staff capabilities, including: * A training-of-trainers program for seven Unit staff members * Establishing an in-house team of experts qualified to deliver specialized training to government authorities and boost their capacity to conduct thorough financial investigations.

Future Plans

The FIU is committed to presenting itself in the best possible light, adhering to the highest standards and qualities, and looks forward to further enhancing its positive image through continued partnership and cooperation with USAID ERLP.

“As we move forward, we are committed to strengthening our financial intelligence capabilities, enhancing regulatory compliance, and promoting international cooperation,” said Mr. Dabwan, head of Aden FIU. “We are excited about the prospect of signing information-sharing MOUs with other countries and expanding our network to combat financial crime effectively.”