The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced on Thursday the imposition of sanctions against the International Bank of Yemen Y.S.C. (IBY) for its financial support to the Houthi movement, also known as Ansarallah. The sanctions also target three key officials associated with the bank: Kamal Hussain Al Jebry, Ahmed Thabit Noman Al-Absi, and Abdulkader Ali Bazara.

According to Deputy Secretary of the Treasury Michael Faulkender, "Financial institutions like IBY are critical to the Houthis' efforts to access the international financial system and threaten both the region and international commerce." He added that the Treasury remains committed to collaborating with the internationally recognized government of Yemen to disrupt the Houthis’ funding channels and acquisition of materials for destabilizing attacks.

The decision comes amid escalating concerns over the Houthis' role in regional instability and their continued access to financial and logistical support. The sanctions are intended to sever the financial lifelines that enable the group’s operations and threaten broader international security and trade routes.

IBY’s designation means that any assets under U.S. jurisdiction will be frozen, and U.S. individuals or entities are generally prohibited from engaging in transactions with the bank or the sanctioned individuals. This action is part of a broader U.S. campaign to isolate and weaken the Houthis through economic and diplomatic means.

The move follows a similar action taken in January, when the U.S. sanctioned the Yemen Kuwait Bank for Trade and Investment Y.S.C. for comparable links to the Houthi network. The Treasury’s continued pressure on financial institutions in Yemen underscores Washington’s focus on cutting off illicit funding flows and enforcing international sanctions.

The Houthis, backed by Iran, have been involved in a prolonged conflict in Yemen against the internationally recognized government, contributing to one of the world's worst humanitarian crises. U.S. officials assert that restricting the group’s access to financial services is essential to limiting their capacity for violence and coercion in the region.

As diplomatic efforts continue to resolve the conflict in Yemen, the Biden administration and the current Trump administration remain aligned in curbing the financial infrastructure that supports the Houthi insurgency.