Yemen

New Documents

Transparency International released its report on Yemen’s current asset disclosure system, reviewing current best practices and providing recommendations on how to reduce corruption involving public officials.

The Yemeni regulator’s annual report discussed the improvement and effectiveness of its anti-money laundering and counterterrorist financing system, in addition to noting that the number of suspicious transactions reports received, processed and analyzed substantially increased.

News

Enforcement Actions

0 Items Found


Important Facts

  • The U.S. Department of State labels Yemen as a jurisdiction of concern. Yemen is not considered a regional financial center. The financial system in Yemen is underdeveloped, and the extent of money laundering is not well known. The government’s collapse and Houthi ascendancy to control much of the country in early 2015 render Yemen vulnerable to money laundering and other financial abuses, including terrorism financing. The profitability of the smuggling of goods and contraband has led to a large informal economy. Criminal proceeds in Yemen tend to emanate from foreign criminal activity, including smuggling by criminal networks and terrorist groups operating locally. There have been a number of U.S. investigations of qat (a mild narcotic) smuggling from Yemen and East Africa into the United States, with profits laundered and repatriated via hawala networks. Yemen has a free trade zone (FTZ) in the port city of Aden, although the conflict significantly disrupted trade and trade controls in 2015. Identification requirements are enforced within the FTZ. Truckers must file the necessary paperwork in relevant trucking company offices and must wear identification badges. FTZ employees must undergo background checks by police, the Customs Authority, and employers. There is no evidence the FTZ is being used for trade-based money laundering or terrorism financing schemes.
  • KYC Covered Entities: Banks, exchange companies, insurance companies, and fund transfer companies; General Post and Postal Savings Authority; real estate agents; gold and precious metal dealers; public notaries, lawyers, and accountants; financial and investment services companies; and designated government ministries, including the Central Organization for
  • Control and Audit, Central Bank of Yemen (CBY), and Ministry of Industry and Trade
  • STR Covered Entities: Banks, exchange companies, insurance companies, and fund transfer companies; General Post and Postal Savings Authority; real estate agents; gold and precious metal dealers; public notaries, lawyers, and accountants; financial and investment services companies; and designated government ministries, including the Central Organization for
  • Control and Audit, CBY, and Ministry of Industry and Trade
  • Enhanced Due Diligence Procedures for PEPs: Foreign: No; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: 0 (January – October 2015); Convictions: 0 (January – October 2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i

Technical Effectiveness
Compliant : 0 High :
Largely Compliant : 4 Substantial :
Partially Compliant : 18 Moderate :
Non-Compliant : 25 Low :
Not-Applicable : 2

A "graylisted" country as of Oct. 19, 2018.

BASEL i

Rank : 15/125
Score : 6.74/10

TRANSPARENCY INTERNATIONAL i

Rank : 177/180
Score : 15/100

Tax Justice Network i

Rank : N/A
Score : N/A