Washington: Today, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced sanctions against two individuals and five entities involved in money laundering and importing petroleum products into Houthi-controlled territories. The Iran-backed Houthis reportedly earn hundreds of millions of dollars annually through collaborations with Yemeni businessmen, by taxing petroleum imports to fund their destabilizing activities in the region.
According to U.S. Department of the Treasury, the sanctions target a network of individuals and companies across Yemen and the United Arab Emirates (UAE), identified as significant petroleum importers and money launderers benefiting the Houthis. Deputy Secretary of the Treasury, Michael Faulkender, emphasized the role of these business networks in supporting the Houthis' operations, highlighting the Treasury's commitment to disrupting these schemes.
Muhammad Al-Sunaydar, a key figure in the network, manages petroleum companies in Yemen and the UAE. His company, Arkan Mars Petroleum Company for Oil Products Imports, has agreements with the Houthis to import gas and oil, including Iranian petroleum, through Houthi-controlled ports in Yemen. Iranian-affiliated companies facilitate payments between the Iranian government and Houthi-linked oil companies, including Arkan Mars, as of June 2025.
Within Al-Sunaydar's network, UAE-based companies Arkan Mars Petroleum DMCC and Arkan Mars Petroleum FZE have been involved in exporting oil to Yemen. These companies coordinated the delivery of approximately $12 million worth of Iranian petroleum products to the Houthis, with the Persian Gulf Petrochemical Industry Commercial Company (PGPICC) facilitating the transaction.
Yahya Mohammed Al Wazir is implicated in laundering and raising funds for the Houthis. Between November and December 2024, Al-Saida Stone for Trading and Agencies made significant payments to purchase coal, a move inconsistent with its public portrayal as a stationery wholesaler. This behavior is typical of a front company.
Amran Cement Factory, controlled by the Houthis, aids in money laundering and revenue generation for the group. As of March 2025, the factory's cement production has been directed to the Saada region to support the Houthis' military efforts.
The individuals and entities sanctioned today are designated pursuant to E.O. 13224, as amended, for materially supporting the Houthis.
As a result of today's action, all property and interests of the designated individuals and entities in the United States are blocked. Transactions involving these entities are generally prohibited without a license from OFAC. Violations may result in civil or criminal penalties. Financial institutions and other parties risk sanctions exposure for engaging in transactions with designated persons.
Additionally, foreign financial institutions participating in transactions with designated persons risk secondary sanctions. OFAC may impose strict conditions on maintaining accounts in the U.S. for such institutions.
OFAC's sanctions aim to effect positive behavioral changes, not just to punish. Guidance is available for those seeking removal from the Specially Designated Nationals and Blocked Persons List.