Yemen Country Summary
Higher Risk
View full Ratings TableSanctions
Higher Concern
FATF AML Deficient List
Higher Concern
Terrorism
Higher Concern
Corruption
Higher Concern
US State ML Assessment
Medium Concern
Criminal Markets (GI Index)
Higher Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Lower Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
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Anti Money Laundering
FATF Status
Yemen is currently on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
It should be noted that the new style FATF Mutual Evaluation has not yet been undertaken.
The last Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Yemen was undertaken by the Financial Action Task Force (FATF) in 2008. According to that Evaluation, Yemen was deemed Compliant for 0 and Largely Compliant for 4 of the FATF 40 + 9 Recommendations. It was Partially Compliant or Non-Compliant for 5 of the 6 Core Recommendations.
Sanctions
The international sanctions enforced against Yemen primarily include measures established by the United Nations, such as travel restrictions and asset freezes for designated individuals and entities, initiated by Resolution 2140 in 2014. Additionally, Resolution 2216 adopted in 2015 imposed an arms embargo on those engaging in actions that threaten Yemen's peace, security, or stability, further complicating the country's humanitarian and political situation.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 13 |
| World Bank: Control of Corruption Percentile Rank | 2 |
Yemen faces a severe crisis of crime and corruption, characterized by rampant human trafficking, arms trafficking, and drug smuggling, exacerbated by ongoing conflict and weakened governance structures. The country’s fragmented justice system and ineffective law enforcement, coupled with widespread corruption among both government and rebel factions, hinder any resilience efforts, leaving vulnerable populations, including refugees and children, at significant risk of exploitation and violence.
Economy
Yemen's economy is classified as low-income and heavily reliant on oil and gas, which significantly contribute to government revenue. The ongoing civil war has devastated economic conditions, resulting in a sharp decline in GDP and leaving approximately 75% of the population in need of humanitarian aid, while the agricultural sector, despite employing many, struggles with minimal GDP contribution and various challenges. The investment climate remains unfavorable due to persistent conflict, political instability, and inadequate infrastructure, which, combined with high corruption levels, deter foreign investment, although Yemen's strategic location and natural resources present potential opportunities for future engagement once stability is restored.
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