The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned two individuals and four companies involved in weapons procurement for Ansarallah, commonly known as the Houthis. Since November 2023, the Houthis have used unmanned aerial vehicles (UAVs), ballistic missiles, and cruise missiles to attack U.S. military forces, merchant vessels, their crews, and civilian populations in Israel. The group relies on a global network to procure and transport dual-use components needed for advanced weapons systems.
Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson stated, “The Houthis have sought to exploit key jurisdictions like the PRC and Hong Kong in order to source and transport the components necessary for their deadly weapons systems. Treasury will continue to target the facilitators that enable the Houthis’ destabilizing activities.”
Today’s action is pursuant to Executive Order (E.O.) 13224, as amended, following OFAC’s June 17, 2024 action against seven individuals and entities aiding Houthi weapons procurement. The U.S. Department of State designated Ansarallah as a Specially Designated Global Terrorist (SDGT) effective February 16, 2024.
Houthi-affiliated shipping firms have facilitated transfers of military-grade components from PRC-based suppliers to Yemen. Al-Shahari United Corporation Ltd., based in Sanaa, Yemen, has shipped components for Houthi missile and UAV manufacturing with its PRC-based branch Guangzhou Alshahari United Corporation Limited (Guangzhou Alshahari). Guangzhou Alshahari is owned by Hongkong Alshahari United Corporation Limited (Hongkong Alshahari). Ahmed Khaled Yahya Al-Shahare is the Director and General Manager of Guangzhou Alshahari.
Al-Shahari United is designated under E.O. 13224 for materially assisting Ansarallah. Guangzhou Alshahari is designated for supporting Al-Shahari United; Hongkong Alshahari is designated for owning or controlling Guangzhou Alshahari; Ahmed Khaled Yahya Al-Shahare is designated as a leader or official of Guangzhou Alshahari.
Maher Yahya Muhammad Mutahar al-Kinai (al-Kinai), a Yemeni businessman supporting Houthi military procurement efforts through Yemen Telecommunication Asset Company for Information Technology (Y-TAC), is also sanctioned under E.O. 13224.
As a result of these actions, all property and interests in property of the named individuals must be blocked if they are within U.S jurisdiction or controlled by U.S persons. OFAC regulations generally prohibit dealings involving these properties by U.S persons or within the United States.
Violations may result in civil or criminal penalties based on strict liability principles under OFAC regulations. Non-U.S persons could face secondary sanctions risks under E.O. 13224 if they engage in significant transactions with those designated today.
OFAC emphasizes that sanctions aim not just to punish but also to encourage positive behavioral changes. Information about removal from an OFAC list can be found on OFAC’s website.
For more details on today’s designations:
Click here
