Financial Crime World

Yemen’s Financial Crime Investigation Techniques Boosted by USAID Collaboration

Enhancing Financial Intelligence Capabilities

Aden, Yemen - The Financial Intelligence Unit (FIU) in Aden has made significant strides in combating financial crime, thanks to a collaborative effort with the United States Agency for International Development’s (USAID) Economic Recovery and Livelihoods Program (ERLP). The FIU recently published its second annual report, highlighting its progress in fighting terrorist financing and money laundering.

Establishment of the Aden-based FIU

Established in 2019, the Aden-based 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 FIU head Basem Dabwan and his team to establish the foundation for the Unit to function effectively and align its oversight activities with best practice requirements for international anti-money laundering/counter financing terrorism (AML/CFT) initiatives.

Key Achievements

  • Enhanced financial intelligence capabilities, identifying patterns, trends, and anomalies within financial data that may indicate connections to criminal and terrorist activities.
  • Established a five-person AML/CFT unit within the Central Bank of Yemen (CBY).
  • Conducted on-site inspections of banks participating in foreign exchange auctions.
  • Adopted AML/CFT procedures related to FX auctions.
  • Signed information-sharing Memoranda of Understanding (MOUs) with the FIUs of six countries: Algeria, Ethiopia, Jordan, Libya, Somalia, and United Arab Emirates.

Support for Capacity Development

USAID ERLP has also supported targeted capacity development for the Unit’s staff. This effort reflects the Unit’s commitment to the Financial Action Task Force (FATF), a leading intergovernmental initiative that sets AML/CFT standards and monitors their implementation.

Key Amendments to Yemen’s AML/CFT Law

The collaboration has led to key amendments to Yemen’s AML/CFT law, which were reviewed with the Unit’s staff and published in 2022. The first circular provided instructions on bank compliance policies necessary to meet AML/CFT requirements, while the second outlined precise indicators and red flags related to human trafficking, sexual exploitation, and insurance fraud schemes.

Impact of the Collaboration

  • Addressed legislative and legal gaps, resulting in an improved business environment and heightened transparency and integrity.
  • Enhanced the FIU’s national and international network through information-sharing MOUs with foreign countries.

Quote

“We have addressed legislative and legal gaps, resulting in an improved business environment and heightened transparency and integrity,” said Basem Dabwan, head of the Aden FIU. “We look forward to further enhancing our positive image through continued partnership and cooperation with USAID/ERLP.”