A Banking Source: Islah and Houthis created 1108 exchange companies to launder money
English - Monday 19 August 2019 الساعة 04:09 pm
Aden, Newsyemen
A Yemeni source with a bank told "Newsyemen" that the Islah Party - the branch of the Muslim Brotherhood in Yemen - and the Houthi militia, were laundering money they gained from the war in companies and money exchangers created during the past four years
The source, who asked not to be named, said that the Islah Party and the Houthi militia, during the last period, opened more than "1108" offices and exchange companies across the governorates without licenses, which are very difficult for the Central Bank of Yemen to control
He added that they reached a total of 1714 exchange companies and offices, of which 914 without licenses, compared to 606 in 2014
He pointed out that the modern companies and offices formed informal entities at the expense of the official banking sector, and these entities are active in speculation in foreign currencies, especially in light of the weak control over the activities of cashiers and the dominance of the Houthis on the Central Bank of Sana'a
According to the World Bank's Prospects for Yemen 2019 report, the protracted war in Yemen has created a "war economy" where fiscal and monetary policies are dominated by short-term considerations in order to maintain fragile opportunistic alliances
Muslim Brotherhood in Yemen tightens its grip on the oil and gas-rich province of Marib, dominates its oil, gas, tax and customs resources, invests in selling electricity to the state, speculating in currency, and actively smuggling weapons, antiquities and fuel, as well as its infiltrating power structures and the funding it receives from Qatar and Turkey
The Houthis continue to directly control most of the national economy in their areas, collecting taxes and levies, surplus profits from public institutions, extorting merchants, confiscating property, trading in fuel on the black market, selling drugs, and receiving massive funding from Doha and Tehran
Economists said that the new wealth of radical Islamist groups in Yemen, "Islah and Houthi", has produced a new generation of corrupt individuals that have undermined the formal economy in favor of a hidden black market economy and pose a huge challenge to peace in the country
