OFAC Issues Yemeni Counter Terrorism-Related Designation

OFAC designated Ansarallah - a Houthi Shiite movement against the Yemeni Sunni government - to the Specially Designated Nationals and Blocked Persons List ("SDN List"). In a related action, the Department of State designated the group a Foreign Terrorist Organization under section 219 of the Immigration and Nationality Act. Concurrent with these designations, OFAC issued four general licenses to authorize the provision of humanitarian assistance to the Yemeni people that otherwise would be prohibited by the Global Terrorism Sanctions Regulations, the Foreign Terrorist Organizations Sanctions Regulations or Executive Order ("EO") 13224 ("Executive Order Dated September 23, 2001").

In General License ("GL") Nos. 9 and 10, OFAC authorized transactions involving Ansarallah that are for the conduct of the official business of, respectively, (i) the U.S. government and (ii) the United Nations, the International Committee of the Red Cross and the International Federation of the Red Cross and Red Crescent Societies. GL No. 10 specified that its authorization does not extend to activities involving the Iranian Red Crescent Society.

In GL Nos. 11 and 12, OFAC authorized certain transactions involving Ansarallah related to:

• nongovernmental organizations supporting humanitarian projects, democracy building efforts, education, non-commercial development projects and environmental protection in Yemen; and

• the exportation or re-exportation of agricultural commodities, medicine or medical devices to Yemen. OFAC specified that GL No. 12 does not relieve exporters from compliance with other legal requirements, including export controls administered by the Department of Commerce's Bureau of Industry and Security.

Additionally, in a new set of FAQs, OFAC highlighted that:

• the GLs are meant to facilitate the "uninterrupted flow of humanitarian assistance" to the Yemeni people (FAQ 875);

• non-U.S. persons, including financial institutions, may engage in or facilitate transactions involving Ansarallah (or any entity in which Ansarallah owns, directly or indirectly, a 50 percent or greater interest), if the transactions would be authorized for a U.S. person (FAQ 876); and

• the GLs authorize both U.S. and non-U.S. persons to provide COVID-19-related humanitarian assistance to the Yemeni people (FAQ 877).