Armies of Liberation

Several years ago the Central Bank began stamping the bills as counterfeit to prevent General Ali Mohsen from putting them back in circulation, as told by a bank employees present at the time. As often occurs, the counterfeiting rings are often simultaneously engaged in other criminal activity such as drug smuggling etc.

Counterfeit Saudi riyals sees upsurge in Yemen, ARAB NEWS Published: Jan 5, 2011

SANAA: Yemen has seen a recent upsurge in the number of currency counterfeit crimes and police reports show that the scale of the problem in the country is grave. A day hardly goes by without a new case involving fake currencies being disclosed. (Read on …)

Below an additional report on banking in Yemen which notes only two per cent of the population has bank accounts. Bloomberg

Yemen, the poorest country in the Middle East, plans to sell $500 million of local currency Islamic bonds for the first time to fund the budget deficit and spur the Shariah-compliant finance industry.
(Read on …)

CBY already injected 20% of its reserves as purchasing power shrinks amid continued public insecurity. A Yemeni economist earlier postulated that excessive money laundering has had a negative impact on the value of the riyal.

Yemen Observer Yemeni riyal fell further against the US dollar as the central bank pumped $57 million into the exchange market, the latest of a series of cash injections to support the tumbling currency which hit a record low this week. (Read on …)

Nice. But they got a good chunk of funds already via this pipeline.

AlawasatAsharq Al-Awsat – Al Qaeda revealed on Thursday the identity of one of the most dangerous women in the organization who was detained by Saudi security forces last February. Sources told Asharq Al-Awsat that Haylah al Qassir was arrested as part of a group of 113 terrorists for having links to Al Qaeda in Yemen. The arrests were announced last March.

An audiotape attributed to Al Qaeda was released on Thursday in which Saeed al Shehri, a deputy leader within Al Qaeda, called for kidnapping Saudi government officials in revenge for Haylah al Qassir’s arrest that was carried out by the Saudi authorities in Riyadh. Al Qassir is described as one of Al Qaeda’s most dangerous women. (Read on …)

Yemen Times

Dr. Mohamed Jubran, professor of economics, to the Yemen Times:
Money laundering is responsible for the devaluation of the Yemeni riyal

He is often quoted by local newspapers and television channels on economic issues, and is well-known among economic reporters and business editors. He used to be a member of the Islah party, but now only focuses on the economy.

In his sitting room at the week-end, he finishes writing up a research paper on his laptop and scans a study about the economy of Yemen. This is Dr. Mohamed Jubran, professor of economics at Sana’a University and he is the person who always finds the courage to speak his mind on any activity related to the economy, business or banking. (Read on …)

What is that, about 400K US? And the story is the Health and Education Ministries withdrew the 400K for salaries from a bank in Zanzibar, Abyan and were driving back when they were highjacked and robbed, and no one could call the nearby military camp because the phone lines were cut by the state earlier in the month. There was an earlier bank robbery in Aden.

Yemen Observer Unknown gunmen seized a car carrying the salaries of the Education and Health Ministries in Loder District in Abyan on Wednesday in the biggest armed robbery operation. (Read on …)

After years of delay during which this bill was brought forth and then rejected by Parliament, Yemen passed a counter-terror financing law. The argument against the law was that it would hamper efforts to fund “legitimate resistance” movements like Hamas and other charitable giving. Also recall in 2005, when the UN circulated a list of 144 bank accounts associated with al Qaeda and/or the Taliban, Yemen closed one and took no further action in subsequent years. See also my category Parliament.

SABA: The parliament ratified on Tuesday the International Convention for the Suppression of Financing of Terrorism.

Concluding its second session for the second term of the seventh annual round, the parliament also approved a law draft against money laundering and terrorism financing as well as a law draft of amending some articles of the civil procedures law.

Ratifying the International Convention for the Suppression of Financing of Terrorism by the parliament comes within the state efforts to combat terrorism in all its forms.

Companies habitually defaulting should be blacklisted, but its important to determine if this is a political move. Very few government actions in Yemen are politically neutral. Yemen Economist:

Central Bank of Yemen tends seriously to develop about 58 trade companies and exchange offices and shops on the blacklist of the bank, so as not honoring their financial obligations to commercial and investment banks operating in Yemen and abroad. (Read on …)