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Yemen Government Accused of Money Laundering by United Nations

Monitors of U.N sanctions have accused Yemen’s government of corruption and money laundering. A report by the U.N. has been disclosed to Reuters stating that this corruption has immensely affected the food supply. According to the report, the Houthi group collected $1.8 billion in state revenue. This was collected to fund the war efforts. 

The officials at the United Nations say that the country might face a large scale famine and the lives of millions of citizens are at risk. The annual report of the Security Council in the United Nations has implemented international sanctions on Yemen. 

The report also said that the Central Bank of Yemen has deposited $2 billion given by Saudia Arabia due to the reconstruction and development program. The money was given to fund commodities like rice, sugar, milk, flour, etc. This program was made to strengthen food security and stabilize prices. 

According to U.N, Central Bank of Yemen has breached its foreign exchange regulations and has manipulated the market by laundering a large amount of money deposited by Saudi Arabia in a money-laundering scheme. 

“The $423 million in public money, which has been illegally transferred to private corporations. Documents provided by the Central Bank of Yemen fail to explain why they adopted such a destructive strategy,” according to the U.N. report.

The report suggests that in the areas which are controlled by the Houthis group, taxes were collected to pay government salaries and give other services to citizens. However, Houthis hid $1.8 billion and a significant portion of the money was used to fund the war. 

The U.N monitors said, “an act of money-laundering and corruption perpetrated by government institutions, in this case, the Central Bank of Yemen and the Government of Yemen, in collusion with well-placed businesses and political personalities, to the benefit of a select group of privileged traders and businessmen.”