Barran Press
The European Union (EU) delegation in Yemen has expressed its understanding and support for recent decisions made by the Central Bank of Yemen (CBY) in Aden, the country's temporary capital. The CBY has taken steps to protect the Yemeni banking sector from continued violations by the Houthi group, particularly following its designation as a terrorist organization.
During a meeting with CBY Governor Ahmed Ghalib at the bank's headquarters, the EU delegation, which included EU Ambassador to Yemen Gabriel Vinalés, Deputy Ambassador Sarah Sadeq, and ambassadors from France, the Netherlands, and Germany, emphasized its ongoing support for Yemen in humanitarian aspects. The delegation also pledged its commitment to supporting the CBY in capacity building, system upgrades, and efforts to promote financial inclusion and strengthen anti-money laundering and counter-terrorism financing systems.
Governor Ghalib briefed the delegation on key economic developments, including financial and monetary aspects, and outlined future prospects amidst ongoing challenges. He highlighted the CBY's recent decisions aimed at safeguarding the Yemeni banking sector from the Houthi group's continued violations, which have disregarded banking laws and standards, damaging the operations of banks and their financial relationships with the international community.
On May 30, 2024, the CBY issued a directive urging individuals, businesses, companies, financial institutions, and banks holding pre-2016 banknotes to deposit them within 60 days. The CBY also announced the suspension of operations for six Yemeni banks, namely: Al-Tadamon Bank, Yemen Kuwait Bank, Yemen Bahrain Bank, Al-Amal Microfinance Bank, Al-Kremi Islamic Microfinance Bank, and Yemen International Bank, after they failed to relocate their headquarters to Aden within the 60-day deadline.
In early April, the CBY mandated all commercial banks, Islamic banks, and microfinance institutions to relocate their headquarters from Sana'a to Aden within 60 days. The CBY warned of legal action against banks that fail to comply with the directive, citing provisions in the Anti-Money Laundering and Counter-Terrorism Financing Law and its implementing regulations.