Washington: Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating two individuals and five entities involved in money laundering and importing petroleum products into areas controlled by Ansarallah, also known as the Houthis. These Iran-backed Houthis reportedly generate hundreds of millions of dollars annually by collaborating with Yemeni businessmen to tax petroleum imports, providing critical revenue for destabilizing activities in the region.
According to U.S. Department of the Treasury, the recent action targets a network of individuals and companies located across Yemen and the United Arab Emirates (UAE), identified as significant importers of petroleum products and money launderers benefiting the Houthis. Deputy Secretary of the Treasury Michael Faulkender stated that these networks support the Houthis’ operations by enabling access to the international financial system.
Muhammad Al-Sunaydar, a prominent petroleum importer in Yemen, manages a network of petroleum companies between Yemen and the UAE. Al-Sunaydar oversees Arkan Mars Petroleum Company for Oil Products Imports, which has an agreement to import gas and oil, including Iranian petroleum, for the Houthis through ports controlled by the group in Yemen. As of June 2025, Iranian-affiliated companies reportedly facilitated payments between the Iranian government and Houthi-affiliated oil companies, including Arkan Mars.
The Al-Sunaydar network includes UAE-based Arkan Mars Petroleum DMCC and Arkan Mars Petroleum FZE, involved in exporting oil to Yemen. Together, they coordinated the delivery of approximately $12 million worth of Iranian petroleum products to the Houthis via Ras Isa port. The Persian Gulf Petrochemical Industry Commercial Company, involved in this transaction, was also designated by OFAC for its ties to Iran’s Islamic Revolutionary Guard Corps.
Yahya Mohammed Al Wazir, another individual targeted, has been involved in money laundering and fundraising for the Houthis. Between November and December 2024, Al-Saida Stone for Trading and Agencies, a company linked to Al Wazir, made significant coal purchases, inconsistent with its public profile as a stationery wholesaler, suggesting its role as a front company.
Amran Cement Factory, controlled by the Houthis, has been providing financial and material support to the group. As of March 2025, the Houthis used the factory’s cement production to fortify military and weapons storage sites in northern Yemen.
The designated individuals and entities are now subject to sanctions under E.O. 13224 for materially assisting or supporting the Houthis. As a result of this action, all property and interests in the U.S. linked to these parties are blocked and must be reported to OFAC. U.S. persons are generally prohibited from engaging in transactions involving these entities without specific authorization from OFAC.
Violations of U.S. sanctions can lead to civil or criminal penalties. OFAC may impose civil penalties based on strict liability for sanctions violations. Furthermore, financial institutions and other parties risk exposure to sanctions for engaging in transactions with designated entities. Engaging in specific transactions with these parties may also result in secondary sanctions on foreign financial institutions involved.
OFAC’s sanctions’ power and integrity rely on its ability to designate individuals and entities to the Specially Designated Nationals and Blocked Persons List. However, the ultimate goal of sanctions is to encourage positive changes in behavior. OFAC provides guidance for those seeking removal from its lists, emphasizing the agency’s commitment to achieving behavioral change rather than punishment.