Yemen government Accused of money-laundering in new EU report

In a report seen by Reuters on Tuesday, U.N. sanctions monitors accused Yemen’s government of money-laundering and corruption “that adversely affected access to adequate food supplies” Stating that the Houthi group collected at least $1.8 billion in state revenue in 2019, using it to fund it’s war effort.

The monitors said Saudi Arabia deposited $2 billion with the Central Bank of Yemen intended for Development and re-construction. The money was intended to fund credit to buy things such as rice, sugar, milk and flour – to strengthen food security.

Investigations found that the Central Bank broke foreign exchange rules, manipulating the foreign exchange market and “laundered a substantial part of the Saudi deposit in a sophisticated money-laundering scheme” that saw traders receive $423 million.

“The $423 million is public money, which has been illegally transferred to private corporations. Documents provided by the Central Bank of Yemen fail to explain why they adopted such a destructive strategy,” according to the U.N. report.

The monitors said it was “an act of money-laundering and corruption perpetrated by government institutions, in this case the Central Bank of Yemen and the Government of Yemen, in collusion with well-placed businesses and political personalities, to the benefit of a select group of privileged traders and businessmen.”

Yemen’s government and the Central Bank did not immediately respond to a request for comment on the accusations.

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