On Friday, 19 December, the EU formally adopted a financial sanctions regime against Yemen, by introducing designated party (“DP”) controls against individuals and entities identified by the relevant UN Sanctions Committee as engaging in or providing support for acts that threaten the peace, security or stability of Yemen.
In line with DP controls introduced in respect of other sanctions regimes, it is prohibited to make available funds or economic resources to or for the benefit of a DP. This can capture payments or providing services/goods to a DP, as well as the receipt of payments from a DP. The controls can also catch dealings with non-listed entities or individuals where, for example, the non-listed entity is owned or controlled by a DP.
Whilst at this stage the EU has only designated three individuals, pursuant to Council Regulation (EU) 1352/2014, the EU controls could expand to any entities or individuals which the UN Sanctions Committee identifies as engaging in acts such as:
(a) “acts obstructing or undermining the successful completion of the political transition, as outlined in the Gulf Cooperation Council (GCC) Initiative and Implementation Mechanism Agreement;
(b) acts impeding the implementation of the outcomes of the final report of the Comprehensive National Dialogue Conference through violence, or attacks on essential infrastructure;
(c) planning, directing or committing acts that violate applicable international human rights law or international humanitarian law, or acts that constitute human rights abuses, in Yemen.”
This development follows from the adoption of the UN Security Council Resolution 2140 earlier this year, and the UN’s listings of 7 November. The three individuals that are currently listed by the UN and the EU are: AL HAKIM, Abdullah, Yahya , AL-HUTHI, Abd, Al-Khaliq and SALEH, Ali, Abdullah. The full identifiers and reasons for designations are available on HMT’s full designated party list available here.
By way of a reminder, the US already has an SDN programme in place in respect of Yemen – see relevant information published on OFAC’s website.
