Pratik Bijlani –
In a decisive step to disrupt Houthi attacks on commercial ships in the Red Sea, the US has imposed a seventh round of penalties against individuals, ships, and companies participating in the illegal movement of oil and other commodities for Iran’s Houthi militia. The current penalties are part of the US government’s continued campaign to isolate and disrupt the funding systems of transnational terrorist groups, with a particular focus on Houthi financial facilitator Sa’id al-Jamal’s network.
Since October 2023, Sa’id al-Jamal’s network has been closely monitored, with millions of dollars being funnelled to Yemen via complicated money laundering activities. The current sanctions target various countries, including India and China, reflecting the Houthis’ global financial network. This network not only supports the Houthis, but also assists Hezbollah in Lebanon, another major Iranian proxy, in transferring sanctioned items.
Lainey Shipping Limited, based in Hong Kong, has been implicated of transporting sanctioned material to Southeast Asia on behalf of Hezbollah-owned Concepto Screen SAL Off-Shore, which is designated by OFAC. The OFAC initially designated Sa’id al-Jamal in 2021 for his participation in supporting the Houthis and their unlawful trading network, which funds Iran’s Islamic Revolutionary Guard Corps Qods Force (IRGC-QF), a group designated by the US in 2007 for supporting terrorist organisations.
This current wave of penalties also targets marine shipping and financial facilitators, vessel managers, owners, and a company that produces counterfeit shipping documents. These organisations have engaged in illegal operations such as concealing cargo origins, falsifying shipping paperwork, and giving services to sanctioned vessels.
The US Treasury’s measures demonstrate a persistent commitment to undermining the Houthis’ activities and reducing their financial capabilities. This seventh wave of sanctions emphasises the need of international collaboration in countering terrorist financing and ensuring maritime security in the Red Sea region.
Marex Media