Financial Crime World

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Yemen’s Financial Intelligence Unit Takes Major Steps to Combat Fraud and Money Laundering

As part of its ongoing efforts to combat financial crime, the Aden-based Financial Intelligence Unit (FIU) has published its second annual report in collaboration with the USAID Economic Recovery and Livelihoods Program. The report highlights the unit’s growing strength in identifying and disrupting terrorist financing and money laundering activities.

Establishment and Objectives

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, experts from USAID ERLP have been working closely with the unit’s head, Mr. Basem Dabwan, and his team to establish its foundation and align its oversight activities with international anti-money laundering/counter financing terrorism (AML/CFT) standards.

The FIU’s primary objectives are:

  • To identify patterns, trends, and anomalies within financial data that may indicate connections to criminal and terrorist activities
  • To foster regulatory compliance and integrity within Yemen’s financial system

Collaboration with USAID ERLP

USAID ERLP has provided significant support to the FIU, including:

  • An analysis of Yemen’s AML/CFT law, which identified areas in need of revision
  • Assistance in updating two circulars related to bank compliance policies and human trafficking

Key Achievements

The CBY distributed the updated circulars to banks and financial institutions, requiring them to classify clients according to risk and submit detailed annual reports evaluating any risks they had been exposed to. The FIU has also:

  • Established an AML/CFT unit within the CBY
  • Conducted on-site inspections of banks participating in foreign exchange auctions
  • Adopted procedures related to FX auctions

Capacity Development and Networking

USAID ERLP has supported the expansion of the Unit’s national and international network through the signing of Memoranda of Understanding (MOUs) with six countries. The unit has also received targeted capacity development for its staff, including a training-of-trainers program for seven staff members.

Conclusion

In conclusion, Aden’s FIU is committed to presenting itself in the best possible light, adhering to the highest standards and qualities. Through continued partnership and cooperation with USAID/ERLP, the unit aims to further enhance its positive image and contribute to a more transparent and secure financial system in Yemen.