Financial Crime World

US Sanctions: What You Need to Know About Transactions in Yemen

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has clarified its sanctions regulations regarding transactions with Yemen, amid concerns over the country’s conflict.

Permissible Transactions

According to OFAC, financial transfers to or through Yemeni financial institutions that do not involve designated individuals or entities are permissible, as long as they do not support Ansarallah or other blocked parties. This means that organizations can still make transactions with Yemen, including:

  • Purchasing fuel for humanitarian purposes
  • Paying taxes, fees, and import duties related to fuel purchases
  • Receiving permits and public utility services

However, these transactions must not be made to a blocked entity.

Designation of Ansarallah

The clarification comes after OFAC designated Ansarallah, a group affiliated with the Houthi movement in Yemen, as a terrorist organization. However, this designation does not affect all transactions and activities within areas controlled by Ansarallah, said OFAC.

General Licenses 25 and 26

In an effort to facilitate humanitarian efforts in Yemen, OFAC has issued two general licenses:

  • General License 25: Authorizes the payment of taxes, fees, and import duties related to fuel purchases, as well as permits and public utility services.
  • General License 26: Allows for certain transactions involving Ansarallah necessary to operations, import/export of goods, or transit of passengers through Yemen’s ports and airports.

Humanitarian Efforts

Non-governmental organizations (NGOs) are authorized to coordinate with Ansarallah regarding the transfer or distribution of humanitarian goods, as long as:

  • The transactions are non-commercial
  • They are designed to directly benefit the civilian population

Complying with OFAC Regulations

For further guidance on complying with OFAC regulations, NGOs and non-profit entities are encouraged to review OFAC’s guidance on this topic. Those seeking specific license applications or requests for guidance related to humanitarian activity can prioritize their requests with OFAC.

Reporting Non-Compliant Activities

The agency urges anyone with information about activities that do not comply with OFAC sanctions to contact the OFAC Compliance Hotline at:

Additional Information

For more information on complying with OFAC regulations, please review their guidance on this topic.