Yemen's Central Bank issues statement on allegations of "money smuggling" and threatens to prosecute a leader in the Southern Transitional Council

On Wednesday, the Central Bank of Yemen issued a clarification statement regarding what was published by the leader of the Southern Transitional Council, Fadi Baoum, regarding allegations of "smuggling money through official ports," considering that what he published falls within a sabotage operation that requires accountability and accountability.

In a statement published on the bank’s official website, “a responsible source in the Central Bank of Yemen condemned what was published on some social media sites under the title of a report to the Attorney General regarding the Central Bank’s smuggling of money in sacks through official outlets and under the governor’s signature.”

He added, "Although what was mentioned does not deserve attention or response due to the writer of the post's blatant ignorance of the financial and banking systems and the movement of money between countries and the procedures to which it is subject under the laws of combating money laundering and financing terrorism from the countries that transfer that money and the countries that receive it, which are countries that are strict in applying these standards."

The source pointed out that the countries to which Yemeni banks are relocated for the purpose of feeding the accounts of these banks in correspondent banks are characterised by their strictness and lack of tolerance for any illegal activities.

He continued: "The deliberate attempt to deceive public opinion through a misleading presentation of the facts and an attempt to describe the legal deportation process through the state's official ports as smuggling, and what this false slander entails is a condemnation of all state agencies that manage and control those ports, the most important of which is Aden International Airport."

The responsible source in the Central Bank stressed that "this deception cannot be understood in the current circumstances of the country except within a sabotage process that requires accountability and prosecution."

Explanatory statement
2024-11-20 https://t.co/qIUVMgrzzk
A responsible source at the Central Bank of Yemen denounced what was published on some social media sites under the title of a report to the Attorney General regarding the Central Bank smuggling money in sacks through official outlets and under the signature of the governor, and although what was mentioned does not deserve attention or… pic.twitter.com/ahMjVr9RMX

— CBY|Central Bank of Yemen (@cby_hq) November 20, 2024

The source said that in order to protect public opinion from the confusion and disarray led by rumour mongers, the Central Bank of Yemen would like to clarify the following:

• Transferring foreign currency amounts in any country only occurs according to a strict system that includes taking all measures to verify their sources, objectives and destination in accordance with the laws in force. This is a procedure followed in all countries and after obtaining an official license from the Central Bank. The transferred amounts belong to licensed banks operating in the Republic of Yemen that have open accounts in correspondent banks in the countries receiving these amounts and are used to cover the needs of their clients to finance the import of food, medicine and other services that the country needs.
• The Central Bank shall not issue a license to transport any shipment until it has undergone all verification procedures and implemented all compliance standards through the Information Collection Unit and the Banking Supervision Sector.
• Since its establishment, the Central Bank has been issuing licenses to banks to transfer their currency surpluses in accordance with established procedures. The amounts transferred before the war exceeded 11 billion Saudi riyals in various currencies.

The source concluded his statement by saying, "The Central Bank, while issuing this clarification to public opinion, reserves its legal right to prosecute the author of the publication and regrets the misleading and incitement it contains against an important sovereign institution that carries out its work in accordance with the provisions of the constitution and applicable laws."

The leader of the Transitional Council, Fadi Baoum, published on his account on the “X” platform a post attached to documents under the phrase “official statement” in which he said that he “requests the opening of a transparent and urgent investigation into the withdrawal of huge sums of money in hard currency on the orders of the governor of the Central Bank.”

"Billions in hard currency transferred abroad: a disaster that requires accountability"

Official statement

Dear Judges:

Judge Qaher Mustafa, Attorney General of the Republic

Judge Afrah Badwylan, Head of the Anti-Corruption Commission

Judge Abu Bakr Al-Saqqaf, Chairman of the Audit and Accountability Authority

Subject: Request to open a transparent and urgent investigation into… pic.twitter.com/gImIcAThuA

— Fadi Baoom (@fadibaoom) November 19, 2024