Financial Crime World

Yemen’s Financial Intelligence Unit Makes Strides in Combatting Money Laundering and Terrorist Financing

Aden, Yemen - Significant Development in Combating Financial Crime

The Financial Intelligence Unit (FIU) of Yemen has published its second annual report, showcasing the country’s growing efforts to combat financial crime. The report, supported by the USAID Economic Recovery and Livelihoods Program (ERLP), provides an overview of the Unit’s activities in identifying patterns, trends, and anomalies within financial data that may indicate connections to criminal and terrorist activities.

History of the FIU

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 FIU head Basem Dabwan and his team to establish the foundation for the Unit’s effective functioning and alignment of its oversight activities with best practice requirements for international anti-money laundering/counter financing terrorism (AML/CFT) initiatives.

Significant Achievements

The collaboration has resulted in significant achievements, including:

  • Establishment of an AML/CFT Unit: A five-person unit was established within the Central Bank of Yemen to oversee inspections of banks and exchange houses.
  • On-site Inspections: The FIU conducted on-site inspections of banks participating in foreign exchange auctions, evaluated potential suspicious activities or transactions, and adopted AML/CFT procedures and mitigation measures related to FX auctions.
  • National and International Network Expansion: The FIU signed Memoranda of Understanding (MOUs) with the Central Bank of Yemen, Yemen’s Customs Authority, and six other countries’ Financial Intelligence Units, streamlining the exchange of information between authorities and enhancing cooperation in combating financial crime.

Capacity Development

USAID ERLP has provided targeted capacity development for the Unit’s staff, including:

  • Training-of-Trainers Program: A training program was conducted for seven staff members to establish an in-house team of experts qualified to deliver specialized training to government authorities.
  • Workshops with Yemen’s AML/CFT National Committee: Workshops were conducted with members of Yemen’s AML/CFT National Committee to enhance their knowledge of key risks associated with non-compliance with core AML/CFT procedures.

Quote from FIU Head Basem Dabwan

“We are committed to presenting ourselves in the best possible light, adhering to the highest standards and qualities,” said FIU head Basem Dabwan. “We look forward to further enhancing our positive image through continued partnership and cooperation with USAID/ERLP.”

Conclusion

The report highlights the importance of regulatory compliance and integrity within Yemen’s financial system, as well as the country’s commitment to the Financial Action Task Force (FATF), a leading intergovernmental G7 initiative that sets AML/CFT standards and monitors their implementation.