Financial Crime World

Yemen Adopts Tougher Regulations to Combat Money Laundering and Terrorist Financing

In a move to strengthen its fight against financial crimes, Yemen has introduced a raft of regulations aimed at preventing the misuse of its financial system. The new laws and institutions are designed to combat money laundering and terrorist financing, and bring the country into line with international standards.

Key Players in Yemen’s AML/CFT Efforts

  • Central Bank of Yemen (CBY): Tasked with overseeing the banking sector’s compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations.
  • Financial Information Unit (FIU): Responsible for receiving, analyzing, and disseminating suspicious transaction reports from financial institutions. Works closely with other agencies and international organizations to identify and disrupt illegal financial activity.
  • National Committee for AML/CFT: Formulates and implements Yemen’s national AML/CFT strategies, monitors their implementation, and ensures compliance with international standards.

Yemen has passed a law, known as Law no. 1/2010 On Anti-Money Laundering and Counter-Terrorism Financing, which provides the legal framework for AML/CFT activities in the country. This law:

  • Defines money laundering and terrorist financing
  • Outlines the obligations of financial institutions to report suspicious transactions
  • Sets out penalties for those found guilty of these crimes

Definitions

Under Yemeni law, money laundering is defined as:

  • Concealing or disguising the source of funds derived from criminal activity
  • Assisting others in doing so
  • Transferring funds knowing they are the proceeds of crime
  • Concealing the origin of funds
  • Acquiring assets with the intention of hiding their ownership

Complicity in money laundering is also criminalized, including acts such as:

  • Initiating, participating in, or assisting in money laundering activities

Terrorist financing is defined under Yemeni law as:

  • Intentionally providing funds to support terrorist activity
  • Directing funds towards a terrorist entity or individual

Complicity in terrorist financing is also criminalized, including acts such as:

  • Organizing or participating in terrorist financing activities

Conclusion

The new regulations are designed to bring Yemen into line with international standards for combating money laundering and terrorist financing. They are seen as an important step in strengthening the country’s financial system and preventing it from being used to support illegal activity.