Yemen: Aden Central Bank Directs Freezing of Civil Society Organizations' Accounts in Exchange Companies

Arab Sea Newspaper - News Updates

Arab Sea - Yemen - Follow-ups: The Central Bank of Yemen in the interim capital, Aden, directed exchange companies and establishments to freeze the accounts of civil society organizations and prevent the opening of any new accounts for them, based on the applicable laws and the memorandum of the Ministry of Social Affairs and Labor. The circular emphasized the need for exchange companies and establishments to freeze all current accounts of the aforementioned organizations and prevent the opening of any new accounts in their name. The statement stressed that the Anti-Money Laundering and Counter-Terrorism Financing Department at the Central Bank will oversee the monitoring of existing accounts and obligate banks and exchange companies to submit detailed reports with the names of those accounts and their balances. The bank also confirmed that it has allocated an official email address to receive bank and exchange statements, while warning of taking strict legal measures against any establishment that violates the instructions or is proven to be non-compliant with the circular. It explained that this measure comes within the framework of efforts to strengthen financial oversight, combat money laundering and terrorist financing, and ensure transparency in the financial transactions of organizations within the country. On August 17th, the Central Bank issued circulars obligating exchange companies and establishments to close the accounts of government institutions and deposit their funds in the Central Bank, granting them a three-day deadline to liquidate and terminate those accounts, while warning of taking strict legal measures against any establishment that violates the directives. During last August, the Ministry of Social Affairs and Labor in the government issued an official circular ordering the freezing of the financial accounts of civil society organizations with exchange companies and establishments, and preventing the opening of new accounts for them, within the framework of regulating financial transactions and strengthening oversight of the activities of those organizations.