Barran Press
Al Rajhi Bank, one of Saudi Arabia's largest financial institutions, has suspended financial transactions and transfers through six Yemeni commercial banks, aligning with a recent decision by the Yemeni Central Bank (CBY) in Aden.
The move comes after the CBY, based in the temporary capital of Aden, announced the suspension of dealings with the six banks on Thursday, May 30, following their failure to comply with a 60-day deadline to relocate their headquarters to Aden.
According to a source cited by the official Yemeni satellite channel, Al Rajhi Bank requested its agents in Yemen to obtain a non-objection certificate from the CBY in Aden before resuming transactions.
The CBY justified its decision to suspend dealings with the banks by citing their non-compliance with legal provisions and bank instructions. The affected banks include Al Tadhamon Bank, Yemen Kuwait Bank, Yemen Bank, Al Bahrain Al Shamil Bank, Al Amal Microfinance Bank, Al Kareemi Microfinance Islamic Bank, and Yemen International Bank.
The CBY's initial decision in early April had mandated all commercial, Islamic, and microfinance banks to relocate their headquarters from Sana'a to Aden within 60 days. The bank had warned of legal action against non-compliant institutions, citing the need to enforce anti-money laundering and terrorism financing regulations.
Al Rajhi Bank's decision to follow suit with the CBY's suspension underscores the growing pressure on Yemeni banks to comply with the Aden-based central bank's directives. The move further highlights the ongoing financial battle between the internationally recognized government in Aden and the Houthi-controlled authorities in Sana'a.