Report: The Houthi militia used the banking sector for looting and money laundering

 A new economic report said that the Houthi militia used the banking sector to launder money and plunder, implementing unconstitutional laws to freeze bank accounts, confiscate interest on deposits, and prevent banks from collecting any form of interest on most banking transactions.

The report, “The Houthis’ Destruction of the Banking Sector - Money Laundering and Looting,” issued by the “Restore Yemen” initiative, added that the Houthi militia’s violations and measures against the banking sector will accelerate the bankruptcy of banks in the near future.

The report stated that the Houthi militia worked hard to destroy the banking sector and support exchange facilities.

 The report focused on the serious violations committed by the Iran-backed Houthi militia against banks in Sanaa and several governorates, which caused damage to the banking sector, which was forced to work in an environment full of challenges.

 Among the most prominent challenges are the severe liquidity crisis and the lack of confidence of depositors in banks due to restrictions on withdrawing deposits in local and foreign currencies from banks.

The report highlighted the impact of the Houthi coup on the banking sector, the repercussions of the Houthis targeting the banking sector, the liquidity crisis, overdrafts, the deterioration of the Yemeni riyal, the division of monetary policy, and the ban on any bank.  As well as issuing the new currency, targeting and bankrupting banks, external isolation, opening fake accounts, plundering customers’ money, and the decision to prevent usurious transactions.

 The report indicated that the devastating Houthi coup caused major cracks in the Yemeni banking system, which led to challenges that constitute an existential threat to the survival of the banking sector itself and its ability to perform its normal functions as it was before the crisis.

It explained that the Houthi militia took advantage of the war to completely control the banking sector, destroy it, and replace it with exchange facilities that helped the Houthi militia obtain financing from abroad and evade anti-money laundering and counter-terrorism financing procedures.

 The report said that the banking sector was affected by the economic war waged by the Houthi militia, starting with the ban on trading in the national currency, which exacerbated the liquidity crisis.

It added that the Houthi economic war forced banks not to deal with the Central Bank in Aden.

The report stated that the Houthi militia advised international organizations not to deal with a number of banks under the pretext of their affiliation with the Central Bank in Aden.

 It pointed out that the Houthi militia imposed many contradictory regulations on banks, in addition to raiding branches, conducting searches, arresting and kidnapping bank officials.

 The report pointed out that, in exchange for full and unconditional support for exchange facilities, the Houthis opened special accounts to supply sales of oil derivatives and household gas, and this cash flow exceeded bank reserves, affecting the flow of goods and services and exacerbating the humanitarian crisis.

المصدر: نيوزيمن