US Imposes Sanctions on Money Exchange Services Linked to Iranian-backed Houthi Rebels

The U.S. has imposed sanctions on a group of money exchange services from Yemen and Turkey, accusing them of providing funding to Iranian-backed Houthi rebels who have been launching attacks on commercial shipping vessels in the southern Red Sea. The sanctions apply to the head of a financial intermediary in Sana'a, Yemen, as well as three exchange houses in Yemen and Turkey. The U.S. Treasury alleges that these individuals and firms helped transfer millions of dollars to the Houthis at the direction of a sanctioned Iranian financial facilitator.

This move is the latest round of financial penalties meant to punish the Houthis, with the aim of restricting the flow of funds to the group and preventing further destabilization in the region. Earlier this month, the U.S. announced sanctions against 13 people and firms who were allegedly providing tens of millions of dollars from the sale and shipment of Iranian commodities to the Houthis in Yemen. Brian E. Nelson, Treasury's undersecretary for terrorism and financial intelligence, stated that the U.S. and its allies will continue to target the key facilitation networks that enable the destabilizing activities of the Houthis and their backers in Iran.

The attacks on commercial vessels in the Red Sea by Yemen’s Houthi rebels have prompted some of the world’s top shipping companies and oil giants to reroute global trade away from the region, thus triggering delays and rising prices. In response to these attacks, the White House has announced that it is encouraging its allies to join the Combined Maritime Forces, a 39-member partnership that exists to counter malign action by non-state actors in international waters, as it seeks to push back against the Houthis.