U.S. Targets Iran, Houthis, Smuggling, and Oil Trade with Sanctions

The U.S. is seeking to continue the pressure both on the regime in Iran and its efforts at financing its proxies including the Houthis and Hamas. The U.S. Department of the Treasury and its Office of Foreign Asset Control each announced additional sanctions today, December 19, targeting Iran’s oil industry, the Houthis, smuggling operatives, arms trafficking, shipping and financial facilitators, including five cryptocurrency wallets associated with a key Houthi financial official.

“Iran continues to rely on its shadowy network of vessels, companies, and facilitators to finance the development of its nuclear program, the proliferation of its weapons systems, and support to its proxies,” said Acting Under Secretary for Terrorism and Financial Intelligence Bradley T. Smith. Speaking about the other tranche of sanctions being announced, he said, “Today’s action underscores our commitment to leveraging all our tools to disrupt the Houthis’ efforts to acquire weapons, procure dual-use components, and secure additional revenue.”

Focusing on the Houthis, the U.S. sanctioned a dozen individuals including the head of the Central Bank of Yemen branch in the Houthi stronghold Sana’a. The U.S. cited the financing efforts used for trafficking arms. Laundering money, and shipping Iranian petroleum.

The governor of the central bank was cited for coordinating and facilitating the money of funds and organizing transactions. It said that Hashem Ismail Ali Ahmad al-Mandani of the bank worked closely with Ahmed Muhammad Hasan al-Hadi a senior financial official. They were using Sana’a-based money services businesses to move large sums and circumvent sanctions. 

In addition to the individuals, they also designated two money exchange firms involved in the transactions. They also identified the five cryptocurrency wallets linked to another senior financial official Sa’id al-Jamal who had been previously designated.

The sanctions cite the role of Houthi operatives in Yemen and China and the leveraging of an array of shipping firms with offices in Yemen and China to transport the illicit materials.

Tow Malaysia-based shipping companies and two tankers are also included for their role in transporting Iranian commodities to finance the Houthi’s efforts. 

The action focused on Iran’s activities also listed tankers from Liberia and Greek registered shipping companies as well as a Marshall Islands company controlling a Djibouti-flagged crude oil tanker. 

The Biden administration highlights that it is committed to keeping up the pressure on Iran and all the related financial streams. They said efforts would continue to expose the schemes and will hold accountable those who seek to enable the destabilizing activities.