Barran Press
The Yemeni Central Bank, headquartered in the interim capital of Aden, has suspended dealings with six Yemeni banks and financial institutions for failing to relocate their headquarters to Aden within a 60-day deadline.
The decision, announced on Thursday, May 30th, 2024, affects the Cooperative Bank, Yemen Kuwait Bank, Yemen Bank, Al-Bahrain Al-Shamil Bank, Al-Amal Microfinance Bank, Al-Karimi Islamic Microfinance Bank, and Yemen International Bank.
The Central Bank stated that the suspension is a consequence of these institutions' failure to comply with legal provisions and its directives.
In early April, the Central Bank issued a directive requiring all commercial banks, Islamic financial institutions, and microfinance banks to relocate their headquarters from Sana'a to Aden within 60 days. The Central Bank had warned of legal action against non-compliant institutions, citing the Anti-Money Laundering and Counter-Terrorism Financing Law and its regulations.
This move highlights the ongoing tensions between the Yemeni government, based in Aden, and the Houthi-controlled government in Sana'a. The relocation directive is seen as an attempt to consolidate the government's authority in the south and undermine the Houthis' control over the financial sector.
The suspension of dealings with these banks could have significant implications for the Yemeni economy, potentially disrupting financial transactions and hindering access to banking services.