Yemen’s Financial Crimes Statistics Paint Bleak Picture

Yemen’s business climate remains fraught with danger, making it a challenging environment for foreign nationals and companies. The risk to staff and assets is exacerbated by the country’s persistent terrorist activity and escalating crime rates.

Risk Factors

Widespread criminal elements
Inefficient police force
Divided security apparatus
Escalating US-Houthi military confrontation threatening ceasefire enforcement

Crime and Security Risk Index

According to BMI’s Crime and Security Risk Index, which evaluates crime and security risks faced by foreign business travelers and expatriates operating in 170 countries worldwide, Yemen presents a highly perilous environment for financial operations. The country’s vulnerability to crime is compounded by the presence of terrorist groups and organized criminal networks.

Conflict Risks

Ongoing internal conflicts
Terrorism posing significant threats to businesses and individuals alike
Petty crimes such as theft and burglary are widespread
Violent crimes including armed robbery and kidnapping are increasingly common

Financial Crimes

Financial crimes pose a significant threat to businesses operating in Yemen, with:

Fraud
Money laundering
Cybercrime being major concerns
Corruption in the corporate governance culture

Defence Market Challenges

Historic defence sector data showing lack of investment in military infrastructure
Limited resources and international sanctions hampering armed forces’ ability to effectively counter terrorist threats

Conclusion

Yemen’s financial crimes statistics paint a bleak picture of a country plagued by conflict, terrorism, and corruption. Businesses operating in Yemen must be extremely cautious when conducting financial transactions and should prioritize thorough due diligence on local partners and suppliers to minimize their exposure to financial crime.