Financial Crime World

Yemen Tightens Grip on Anti-Money Laundering Regulations

In a bid to strengthen its financial regulatory framework and combat money laundering and terrorist financing, Yemen has established several key institutions and enacted laws aimed at combating these illicit activities.

Key Institutions and Laws

  • The Central Bank of Yemen (CBY) plays a crucial role in overseeing the country’s banking system’s compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations.
  • The Financial Information Unit (FIU) is responsible for receiving, analyzing, and disseminating suspicious transaction reports from financial institutions.
  • The National Committee for AML/CFT develops and updates national strategies, monitors implementation, and ensures compliance with international standards.

Yemen’s primary legal framework for AML/CFT activities is Law no. 1/2010 On Anti-Money Laundering and Counter-Terrorism Financing, which outlines:

  • Definitions of money laundering and terrorist financing
  • Obligations and penalties for non-compliance
  • Measures for combating money laundering and terrorist financing

Key Provisions

  • The definition of money laundering includes:
    • Transferring funds knowing or having reason to believe they are from criminal activities
    • Concealing the origin of such funds
    • Acquiring or using funds knowing or having reason to believe they are from criminal activities
  • Complicity in money laundering is also covered under the law, as well as predicate crimes for money laundering, including:
    • Organized crime involvement
    • Terrorism and its financing
    • Smuggling
    • Tax offenses
    • Fraud
    • Environmental crimes

Treatments of Money Laundering and Terrorism Financing

  • Money laundering is treated as a separate offense from the underlying predicate crime.
  • Complicity in terrorism financing is punishable under the law, as well as organizing and involvement in groups for terrorism financing activities.

International Monitoring

Yemen’s efforts to combat financial crimes are being closely monitored by international bodies, including the Financial Action Task Force (FATF). The country’s progress in implementing its AML/CFT regulations will be crucial in determining its compliance with global standards and preventing the misuse of its financial system.