Houthis implement banking measures to disguise the transfers of the proceeds from the Iranian oil trade

Well-informed banking sources confirmed that the leadership of the Houthi militia at the Central Bank in Sana'a directed the banks to open accounts for the Sweid Exchange Company - listed on the US sanctions list - which raised the banks' concerns.

The Houthis, following their domination of the central bank in the capital, Sanaa, imposed illegal interventions on Yemeni banks, without regard for the devastating consequences on the economy, the banking sector, and the livelihood of the population.

The sources said that last August, CAC Bank and Yemen International Bank received instructions from the Houthi militia to open accounts for the Sweid & Sons Exchange Company under another name to bypass the strictures of the US sanctions decision.

"The Houthi militia's directives included opening accounts for the Sweid & Sons Exchange Company under pseudonyms in a number of banks in Sana'a in separate periods of time during the last quarter of 2021." The sources added.

Last June, the US Treasury issued sanctions against the Sweid & Sons Exchange Company for its involvement in the implementation of financial transfers from Iranian oil revenues to fund the Quds Force of the Iranian Revolutionary Guards, and the activities of the Houthi militia in Yemen.
 
The recent Houthi militia measures, obligating banks to deal in white dollars in a pre-2009 edition, confirm that they continue to receive cash from Iranian oil revenues through a maritime smuggling network that enters through the port of Hodeidah.

Banking experts attributed the reason for the Houthi militia's ban on dealing in blue dollars after 2009, to the militia's disposal of their stock of white dollars, which they reach from Iran through the port of Hodeidah, which is under their control, and use it for smuggling operations.
 
They stressed that the Houthi militia's measures do not interfere with the control of the exchange rate, as it is fixed in their areas of control.

Iranian support for the Houthi militia increased during 2021, to finance the militia’s continuous operations with the aim of overthrowing the oil-rich Ma’rib governorate, which drained the Houthi financial, human and military capabilities.