U.S. Treasury Department Imposes New Sanctions on Houthi Regime: Arms Smuggling and Illicit Iranian Oil Shipments

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on 12 individuals and entities, including the Houthi-aligned Governor of the Central Bank of Yemen, for their involvement in arms trafficking, money laundering, and the illicit shipment of Iranian oil.

The sanctions target key smugglers, arms dealers, and shipping brokers who helped the Houthis obtain dual-use components and weapon parts, thus supporting their regional activities that threaten stability.

Additionally, five cryptocurrency wallets linked to Houthi financial advisor, Said al-Jamal, who is supported by the Iranian Quds Force, were identified. Al-Jamal operates under multiple aliases.

Hashim Ismail al-Madani, the Governor of the Central Bank in Sana’a, is a key figure in the Houthi movement, overseeing funds sent to the Houthis by the Quds Force. His communication with al-Jamal has contributed to enhancing Houthi commercial activities.

Ahmed Mohammed Hassan al-Hadi, a senior Houthi financial official, facilitates the movement of money for the group, directing other officials to transfer and distribute funds, reflecting the Houthis’ complex financial organization.

The Houthis used their controlled financial companies in Sana’a to move money and bypass sanctions, with Al-Thawr Exchange transferring millions of dollars to support money laundering activities linked to the Iranian Revolutionary Guard Corps.

Moreover, Houthi agents in Yemen and the People's Republic of China play a significant role in facilitating arms shipments, using shipping companies like Safwan Dobi to transport components and weapons into Yemen.

Finally, al-Jamal’s network continues to generate revenue for the Houthis by exporting Iranian oil illicitly, benefiting from financial shipping companies in Malaysia, further demonstrating the complexity of the Houthi smuggling and financial support network.