Financial Crime World

Yemen’s Financial Intelligence Unit Shines in Fight Against Financial Crime

============================================================

The Financial Intelligence Unit (FIU) in Yemen’s Aden has made significant strides in combating financial crime, according to its latest annual report published with support from USAID’s Economic Recovery and Livelihoods Program. The report highlights the Unit’s efforts to prevent terrorist financing and money laundering, which fuel criminal activities such as drug dealing, terrorism, and arms trafficking.

Establishment and Growth

Established in 2019, the FIU serves as a central hub for collecting, analyzing, and disseminating financial intelligence on suspicious transactions and activities. Since 2020, USAID experts have been working closely with the Unit’s head, Mr. Basem Dabwan, to establish its foundation and align its oversight activities with international anti-money laundering/counter financing terrorism (AML/CFT) best practices.

Collaborative Efforts

The collaborative efforts between the FIU and USAID ERLP aim to enhance the Unit’s financial intelligence capabilities, foster regulatory compliance and integrity in Yemen’s financial system, and demonstrate commitment to the Financial Action Task Force (FATF), a leading intergovernmental initiative that sets AML/CFT standards.

Key Achievements

  • Analyzing Yemen’s AML/CFT law, identifying areas for revision to meet FATF standards
  • Publishing two circulars by the Central Bank of Yemen (CBY) in 2022, providing guidance on bank compliance policies and precise indicators and red flags for human trafficking, sexual exploitation, and insurance fraud schemes
  • Establishing a five-person AML/CFT unit within the Central Bank of Yemen to oversee inspections of banks and exchange houses
  • Conducting on-site inspections of banks participating in foreign exchange auctions to evaluate potential suspicious activities or transactions
  • Assisting the FIU in adopting AML/CFT procedures and mitigation measures related to FX auctions, providing a major incentive for bank compliance with reporting requirements

Capacity Development and Expansion

USAID ERLP has also supported the FIU in several other initiatives, including:

  • Providing capacity development training for the FIU’s staff, establishing an in-house team of experts qualified to deliver specialized training
  • Signing Memoranda of Understanding (MOUs) between the FIU and other authorities, expanding the Unit’s national and international network

Commitment to Excellence

Aden FIU Head Mr. Basem Dabwan emphasized the importance of continued partnership and cooperation with USAID/ERLP, stating that the Unit is committed to presenting itself in the best possible light, adhering to the highest standards and qualities.

Overall, the partnership between the FIU and USAID ERLP has resulted in significant progress in combating financial crime in Yemen.