UN Report Reveals Role of Exchange Companies and Networks in Transferring Money to Houthis

The final report of the United Nations expert team on Yemen revealed the involvement of exchange companies and financial entities in the illegal transfer of funds in favor of the Houthis in Yemen and abroad.

The report presented to the UN Security Council identified companies such as Rawdhah Exchange Company, Ridhwan Exchange Company, Global Express Exchange Company, Nabco Exchange Company, and the Iranian company "ALAman Kargo Ithalat Ihracat Ve Nakliyat Limited Sirketip" among those involved.

 The investigation conducted by the UN team found that the Houthis use various networks of individuals and entities operating in multiple jurisdictions, including Iran, Turkey, Djibouti, Iraq, and Yemen, to finance their activities.

The Houthis rely on multiple banks, fake companies, exchange companies, shipping companies, and financial facilitators.

The team said that officials of some of these companies and banks confirmed that this method of work was followed.

The Platform for Tracking Organized Crime and Money Laundering in Yemen (P.T.O.C) issued its second report titled "Secret Financial Entities of the Houthis," which contains data, documents, and evidence proving the involvement of hundreds of exchange companies, commercial entities, and official entities in secret activities aimed at enhancing the financial resources of the Houthi militia, enabling them to continue local, regional, and international wars and enriching some of their terrorist leaders at the expense of the suffering of the Yemeni people.

The platform exposed official and commercial documents of companies and individuals linked to the secret financial wing of the Houthis, revealing the hidden financial system Iran relies on to fund its branches in Yemen and the region.

The UN report noted that the Houthis recently formed a special committee to increase their revenues and plan military spending, including on weapons, under the supervision of a high-level expert known as "Abu Radwan" affiliated with the Radwan Force of Hezbollah. "Abu Radwan" advises on increasing customs duties, taxes, levies, and telecommunications company tariffs. Recently, the Houthis increased customs duties on some goods, imposed new fees, and raised telecommunications taxes by approximately 35%. The report stated that a significant amount of money is being illegally transferred, under the direction of Said Al-Jamal, a member of the Islamic Revolutionary Guard Corps' Quds Force, to support the Houthis.

Secret sources implicated several individuals, including senior Houthi leaders, and entities facilitating financial support for the Houthis, such as Nabil Ali Ahmed Al-Haddah, Abdullah Najib Ahmed Al-Jamal, a relative of Said Al-Jamal residing in Yemen, Abdi Nasser Ali Mahmoud, a Houthi affiliate and business partner of Said Al-Jamal, Ibrahim Al-Nasheri, a member of the Houthi group, and some leading companies owned or controlled by Mohammed Salah Fleita and Mohammed Abdul Salam.

The report added that the foreign currency needs of Houthi-affiliated companies for purchasing imports may have been facilitated by the Houthi Payments Committee. The team is currently investigating a case involving a Yemeni businessman connected to the senior Houthi leadership in purchasing weapons for the Houthis using funds transferred through several exchange companies. This person worked as a customs clearance agent and attempted to facilitate the clearance of a shipment seized by Yemeni customs on March 10, 2022, at the border shipping point, containing 52 anti-tank missiles or missile parts of the Delilah type for the Houthis.

The report indicated that this individual was involved in purchasing operations and payments related to various military materials acquired by the Houthis, and he established a company in Djibouti, living there under a different name, using a fake passport. The team is examining copies of several documents showing cash deposits and money transfers in the name of three exchange companies in Djibouti and Yemen.