The Studies and Economic Media Center (SEMC) and the Economic Reforms Team (ERT) organized a webinar on Monday, January 20, to discuss the practices and challenges facing efforts to combat money laundering and terrorism financing in Yemen’s banking sector. The webinar aimed to diagnose the current procedures adopted by the sector regarding these efforts.
Held via Zoom, the webinar facilitated serious discussions among representatives from the Central Bank of Yemen in Aden, Yemeni banks and money exchange companies, and relevant international organizations. It provided a platform to review the experiences of Yemen’s banking sector, develop relevant practices, and understand the efforts being made by banks to establish anti-money laundering (AML) and counter-terrorism financing (CTF) measures in Yemen.
At the opening of the webinar, Ahmed Bazara, Head of the ERT, emphasized the importance of working
towards a secure financial environment amidst the country’s deteriorating security and economic conditions over recent years. He highlighted the difficulties faced by the Yemeni banking sector in light of accelerating regional and international developments and their impact on Yemen.
Meanwhile, Mustafa Nasr, Chairman of SEMC, addressed the challenges of combating money laundering and terrorism financing in Yemen’s financial sector against the backdrop of growing U.S. and international sanctions on Yemeni banks and individuals. Nasr stressed that these sanctions would not only affect targeted entities and institutions but would also exacerbate the suffering of Yemenis and further complicate the situation.
This underscores the need for logical solutions to mitigate the economic crisis and the sector’s accelerating decline, which has far-reaching implications for both financial and banking sectors.
Nasr also presented findings from a diagnostic survey regarding the escalation of sanctions on Yemen’s banking sector. Approximately 36% of respondents believed U.S. sanctions would significantly impact the targeted entities and individuals, while the same percentage saw no major effect. About 27% anticipated a limited impact, while 55% noted a significant impact on Yemen’s economy due to sanctions on entities and individuals linked to the Houthi group (Ansar Allah).
Nasr outlined several potential scenarios to address the sanctions, including accepting unofficial roadmap by the Houthis, relocating financial operations to Aden, or maintaining the current approach, which could lead to further sanctions.
On the official level, Basim Dabwan, head of the Financial Information Unit at the Central Bank of Yemen in Aden, discussed Yemen’s legal and legislative framework for combating money laundering and terrorism financing, which peaked in 2014 before stalling due to the ongoing conflict.
Dabwan described the current situation as unpromising due to the continuous advancement of international standards and the lack of updates to Yemen’s laws and regulations, which have remained stagnant for nearly a decade.
Abdul Fattah Aqlan, Assistant General Manager at Al-Kuraimi Islamic Bank, addressed current compliance and AML/CTF practices. He shared the bank’s efforts to enhance compliance policies among its staff and its engagement with local and international entities to provide integrated financial services to clients.
Similarly, Moath Qassem, Compliance Manager at Tadhamon Bank, highlighted the Bank’s historical path toward compliance with AML/CTF standards through system automation, transforming policies into actionable procedures and templates applied across all financial operations. He noted the bank’s continuous updates to local and international blacklists.
In his remarks, Yasser Al-Maqtari, Branch Manager at the Shamil Bank of Yemen and Bahrain in Taiz, stressed the need for collective efforts to rescue the financial and banking sectors by unifying stances. He emphasized the importance of adopting transparent and well-defined mechanisms that align with international changes in AML/CTF practices.
Participants underscored the importance of collaboration with the Central Bank of Yemen in Aden and international financial institutions to shield the banking sector from the negative consequences of sanctions. They called for a clear strategy for combating money laundering and terrorism financing while adhering to principles of transparency and compliance.
The webinar concluded with contributions from representatives of international and local organizations, banks, exchange companies, business figures, and economic researchers, discussing the impact of U.S. sanctions on Yemen’s financial and banking sectors.
To watch the full Webinar, click here
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