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US sanctions money lending network to Yemen’s Houthi rebels

Responding to increased attacks on ships in the southern Red Sea by Iranian-backed Houthi rebels, the U.S. announced sanctions against 13 people and firms alleged to be providing tens of millions of dollars from the sale and shipment of Iranian commodities to the Houthis in Yemen.

Quick Read

  • U.S. Sanctions Against Houthi Supporters: The U.S. imposed sanctions on 13 individuals and entities accused of providing financial support to Iranian-backed Houthi rebels in Yemen. The sanctioned entities are believed to be involved in the sale and shipment of Iranian commodities, generating significant funds for the Houthis.
  • Escalation in Red Sea Attacks: The sanctions come in response to increased missile attacks by Houthis on commercial vessels in the southern Red Sea. These attacks have escalated since the outbreak of the Israel-Hamas war.
  • Combined Maritime Forces Expansion: The U.S. is encouraging allies to join the Combined Maritime Forces to counter non-state actors’ threats in international waters. The 39-member partnership aims to enhance maritime security and combat the Houthi threat.
  • Treasury’s Action Against Financial Network: The U.S. Treasury Department identified a network led by Sa’id al-Jamal, a Houthi and Iranian financial facilitator, who uses exchange houses and firms to funnel Iranian funds to Yemen’s militants.
  • Targeted Sanctions: Sanctions were levied against money lenders and shipping firms across various countries, including Lebanon, Turkey, Russia, and Dubai. These sanctions aim to disrupt the financial and logistical support enabling Houthi attacks.
  • U.S. Response to Houthi Aggression: Brian Nelson, from the Treasury, emphasized the U.S. commitment to disrupting networks that support destabilizing activities by the Houthis. The U.S. condemns the unprovoked attacks on civilian infrastructure and commercial shipping by the Houthis.
  • Increasing Houthi Attacks: The frequency of Houthi attacks on shipping operations has risen, particularly following an incident at a hospital in Gaza in October, which the Houthis have cited as a motivation for their actions.
  • International Collaboration Efforts: The White House’s focus is on ensuring adequate military assets to deter Houthi threats and maintain maritime security. Several key partners have shown interest in joining the Combined Maritime Forces.
  • Possible Naval Task Force: The U.S. is considering establishing a naval task force to escort commercial ships in the Red Sea, reflecting the seriousness of the Houthi threat to international shipping and trade.
  • Protecting Maritime Navigation: The U.S. aims to safeguard freedom of navigation in the region and views the Houthi issue as requiring an international solution, given its global economic implications.

The Associated Press has the story:

US sanctions money lending network to Yemen’s Houthi rebels

Newslooks- WASHINGTON (AP)

Responding to increased attacks on ships in the southern Red Sea by Iranian-backed Houthi rebels, the U.S. announced sanctions against 13 people and firms alleged to be providing tens of millions of dollars from the sale and shipment of Iranian commodities to the Houthis in Yemen.

The White House also announced Thursday that it was encouraging allies to join the Combined Maritime Forces, a 39-member partnership that exists to counter malign action by non-state actors in international waters, as it looks to push back against the Houthis. The State Department and Pentagon are leading the effort to expand the maritime partnership after three commercial vessels were struck by missiles fired by Iranian-back Houthis in Yemen earlier this week.

The strike marked an escalation in a series of maritime attacks in the Mideast linked to the Israel-Hamas war, as multiple vessels have found themselves in the crosshairs of a single Houthi assault for the first time in the conflict. The U.S. vowed to “consider all appropriate responses” in the wake of the attack, specifically calling out Iran, which is the chief sponsor of both Hamas militants in Gaza and the Houthis in Yemen.

FILE – The Treasury Building is viewed in Washington, May 4, 2021. In response to increasing attacks against ships in the southern Red Sea by Iranian-backed Houthi rebels, the U.S. has announced sanctions against 13 people and firms alleged to be providing tens of millions of dollars to the Houthis in Yemen. (AP Photo/Patrick Semansky, File)

In the new sanctions announced Thursday, Treasury said that previously sanctioned Houthi and Iranian financial facilitator Sa’id al-Jamal uses a network of exchange houses and firms to help Iranian money reach the country’s militant partners in Yemen.

The sanctions block access to U.S. property and bank accounts and prevent the targeted people and companies from doing business with Americans.

Money lenders in Lebanon, Turkey and Dubai are listed for assisting al-Jamal, along with shipping firms from Russia to St. Kitts and Nevis, which allegedly move al-Jamal’s Iranian commodity shipments. All people and firms were hit with sanctions Thursday.

Brian Nelson, Treasury’s under secretary for terrorism and financial intelligence, said the Houthis “continue to receive funding and support from Iran, and the result is unsurprising: unprovoked attacks on civilian infrastructure and commercial shipping, disrupting maritime security and threatening international commercial trade.”

“Treasury will continue to disrupt the financial facilitation and procurement networks that enable these destabilizing activities.”

Since October, the Houthis have launched missile and drone attacks over commercial shipping operations in the Red Sea and the Gulf of Aden.

The Houthis have sporadically targeted ships in the region over time, but the attacks have increased since the start of the war between Israel and Hamas, spiking after an Oct. 17 explosion at a hospital in Gaza killed and injured many. Houthi leaders have insisted Israel is their target.

National Security Council spokesman John Kirby speaks during the daily briefing at the White House in Washington, Thursday, Oct. 26, 2023. (AP Photo/Susan Walsh)

White House National Security Council spokesman John Kirby said that the U.S. has already heard from “several key partners” interested in potentially joining the Combined Maritime Forces.

The maritime partnership focuses on counter-narcotics, counter-smuggling, suppressing piracy and promoting a safe maritime environment. When requested, CMF assets at sea respond to environmental and humanitarian incidents.

“Our focus at this time is ensuring that there are sufficient military assets in place to deter these Houthi threats to maritime trade in the Red Sea and in the surrounding waters to the global economy writ large,” Kirby said.

The White House announced earlier this week that the U.S. may establish a naval task force to escort commercial ships in the Red Sea. National security adviser Jake Sullivan said on Monday that the U.S. has been in active conversations with allies about setting up the escorts, though nothing was finalized.

Kirby stressed that the U.S. is “not in an armed conflict with the Houthis per se” but is determined to protect and determine freedom of navigation.

“This is an international problem. And it demands an international solution and that is exactly the approach that the United States is going to take to it now,” Kirby said.

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