Banks in Yemen ordered to move headquarters from Houthi-controlled capital-Xinhua

Banks in Yemen ordered to move headquarters from Houthi-controlled capital

Source: Xinhua

Editor: huaxia

2024-04-03 05:56:00

ADEN, Yemen, April 2 (Xinhua) -- The Central Bank of Yemen (CBY) on Tuesday gave all banks operating in the country a 60-day deadline to move their headquarters from the Houthi-controlled capital Sanaa to the country's southern port city of Aden.

In a decision announced on the bank's website, CBY Governor Ahmed Ghalib warned that any banks defying the order will face potential legal action under Yemen's anti-money laundering and counter-terrorism financing laws.

This exposes the financial institutions headquartered in Sanaa to risks including asset freezes and severance from the global banking system, Ghalib stated.

He stressed the necessity of the headquarters relocation move to enable the central bank to properly carry out its regulatory oversight from Aden in line with banking laws.

The Houthi faction recently introduced a new 100-riyal coin, marking the first currency issuance since the onset of Yemen's civil war more than nine years ago. This act has been criticized by the Aden-based central bank and underscores the deepening monetary policy rift between the rebel faction and the internationally recognized government based in Aden.

Since 2016, when the Saudi-supported Yemeni government moved the central bank's main office from Sanaa to Aden, Yemen has been divided into two distinct economic territories, with the government in the south and the Houthi leadership in the north.