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Treasury Sanctions Houthi Network for Weapon Procurement and Sanctions Evasion Tactics

sanctions houthi network weapon procurement

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has escalated its efforts against the Houthi terrorist network, imposing sanctions on individuals and organizations involved in procuring weapons, military goods, and commodities from Russia. This includes weapons used in attacks on commercial vessels in the Red Sea, a region critical for global shipping. The Treasury’s recent actions target key players within the network, including Sa’id al-Jamal, a senior Houthi financial official, and individuals linked to arms and goods smuggling operations, further weakening the group’s operational capacities.

In a detailed move to disrupt the Houthis’ ability to finance their operations, the Treasury has designated Houthi financial facilitators such as Hushang and Sohrab Ghairat, both Russia-based Afghan businessmen. These individuals are key figures in coordinating arms procurements and shipping sensitive commodities, including stolen Ukrainian grain, from Russia to Yemen. Their actions support the ongoing war efforts of the Houthis, including attacks on global shipping and the destabilization of the region.

The Role of Sa’id al-Jamal in the Houthi Network

A focal point of today’s designation is Sa’id al-Jamal, a figure heavily tied to Iranian-backed operations within the Houthi movement. His activities directly support the group’s military campaigns, including the procurement of sophisticated weaponry. By sanctioning individuals like Sa’id al-Jamal and his network, the U.S. is aiming to limit the Houthis’ access to crucial resources and financial streams. This is part of a broader strategy to degrade their capabilities to threaten international security through acts of terrorism.

Secretary of the Treasury Scott Bessent stated, “The Houthis remain reliant on Sa’id al-Jamal and his network to procure critical goods to supply the group’s terrorist war machine.” This underlines the continuing threat the Houthis pose to regional stability and global maritime security.

The Global Implications of Houthi Attacks on Commercial Shipping

The Houthis’ destabilizing activities extend beyond regional impacts. By deploying missiles, drones, and naval mines, the group has threatened the safety of international trade routes in the Red Sea. These attacks have not only led to tragic loss of life but have caused significant financial damage to the global shipping industry. The U.S. Treasury’s sanctions are aimed at targeting the financial underpinnings that enable such attacks, with the hope of curbing the Houthis’ ability to execute these operations.

The Designation Process and Legal Framework

This recent action was taken pursuant to the counterterrorism authority provided under Executive Order 13224, as amended. This Executive Order allows the U.S. government to designate individuals and entities that materially assist or support designated terrorist groups. The Treasury’s action also aligns with the U.S. State Department’s 2024 designation of the Houthis as a Specially Designated Global Terrorist (SDGT) group. Sanctions against such entities are designed to freeze assets, block property interests in the U.S., and impose restrictions on U.S. financial institutions dealing with these individuals.

Sanctions and Penalties for Violations

Following the sanctions, any property or interests in property linked to the designated individuals are now blocked, making transactions with these entities illegal under U.S. law. Violators of these sanctions risk facing civil or criminal penalties. U.S. financial institutions are advised to be especially vigilant and avoid engaging in transactions with these designated individuals or organizations to prevent secondary sanctions. Additionally, any financial institutions found violating these sanctions may be restricted from maintaining correspondent accounts with U.S. banks.

The Complex Network of Financial Facilitators

The sanctions reveal the intricate network of financial facilitators supporting the Houthi procurement activities. One such individual is Iranian money launderer Hassan Jafari, who played a key role in assisting with financial transactions and evading sanctions. Jafari’s role was critical in the coordination of multi-million-dollar payments for shipments of arms and goods for the Houthis. By targeting these financial networks, the U.S. Treasury is aiming to dismantle the Houthi’s supply chain and financial lifeline.

Conclusion: The U.S. Commitment to Disrupting Houthi Operations

The sanctions announced today represent a continued effort by the U.S. government to combat the Houthi movement’s destabilizing actions and its links to Iran’s Islamic Revolutionary Guard Corps (IRGC-QF). By targeting key individuals and entities within the network, including those facilitating arms procurements and financial transactions, the U.S. is making a significant move to disrupt the flow of resources to this terrorist organization. The sanctions are a critical tool in the broader strategy to curb the Houthis’ ability to carry out their attacks and harm the stability of the region.