Yemen Monitor/Aden/Private
Banking sources reported on Tuesday that the Yemeni central bank in Aden has permanently halted internal money transfers to Houthi-controlled areas.
According to the sources, “Exchange bureaus in areas under the legitimate Yemeni government have completely stopped sending money to Houthi-controlled areas.”
This comes as sources revealed that the Yemeni central bank in Aden is preparing a decision to withdraw the “SWIFT” system from non-compliant banks that refuse its decisions in the Houthi-run areas, and to cancel their operating licenses permanently as a result, this will lead to a complete halt of their activities outside Houthi areas, turning them into small local exchange offices incapable of providing any banking services to individuals, companies, and institutions.
Days ago, the Yemeni central bank in Aden had decided to completely suspend work with local money transfer networks and oblige exchange companies and establishments to transfer money through the unified network for money transfers, which is affiliated with the bank itself.
The decision issued by the bank’s governor, Ahmed Ghaleb al-Ma’baqi, stipulated the complete and final suspension of work with local money transfer networks owned by banks, exchange companies and establishments operating in the republic, calling on banks and exchange companies concerned to settle pending operations in their affiliated transfer networks within 15 days, and submit a report within 20 days on unpaid money transfers that have not been delivered to their owners.
The bank decided to prohibit any internal money transfer operations in cash, whether for sending or receiving by any other means or method, with the exception of electronic wallets and licensed payment service providers within the limits of the approved ceilings according to the instructions organized for that purpose.
He pointed out that work with the unified transfer network is subject to the supervision and control of the central bank within the limits of the laws in force, related decisions, regulatory and supervisory procedures that the bank decides, stressing the committing of banks, exchange companies and establishments in providing data and periodic reports, records and statistics that the Central Bank deems necessary in the time, form and manner specified by it.
The decision warned that the central bank will take all necessary legal measures, including withdrawing the license, stopping the activity, and imposing appropriate financial penalties on banks, exchange companies and transfer agents in violation of this decision or the implementing instructions or issued pursuant to it.
This step comes after less than two months of the deadline granted by the central bank in Aden to commercial banks, Islamic banks and microfinance banks to transfer their headquarters to the temporary capital Aden.
The decision at that time, in early April, gave the banks 60 days to implement, stressing that those who fail to comply will face legal action.
The decision came, according to the bank, “in accordance with the provisions of the Anti-Money Laundering and Terrorist Financing Law in force and its executive regulations,” attributing its decision to “the illegal measures against the banks operating within areas controlled by the Houthi group , which are classified as terrorists.”
The measures of the Yemeni central bank come at a time when the value of the Yemeni currency continued its sharp decline in areas under the Yemeni government to reach its lowest level ever against the dollar and foreign currencies in the city of Aden, where the dollar exchange rate exceeded 1848 riyals today, Tuesday.
