Sanctions imposed on key procurement operatives and facilitators aiding Houthi missile and drone development

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) has announced sanctions against a network of individuals and entities involved in facilitating weapons procurement and smuggling for the Houthi movement, also known as Ansarallah. These sanctions target key operatives and suppliers in Iran and China, who have provided dual-use materials essential for the production of advanced missiles and unmanned aerial vehicles (UAVs), which have been deployed in attacks against the U.S., its allies, and civilian vessels in the region.

The sanctions, which encompass one individual and three companies, build on earlier actions taken by OFAC in June and July 2024, aimed at disrupting the Houthi’s supply chains for military-grade components. These latest measures mark a significant escalation in U.S. efforts to undermine the capabilities of the Houthi forces, whose procurement networks have allowed them to sustain their missile and UAV production despite international sanctions.

Escalating Threats and Smuggling Networks

“The Houthis continue to leverage their networks of companies and procurement operatives to sustain their reckless attacks on civilian vessels, their unarmed crews, and civilian populations,” said Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence. “Treasury remains committed to using our full suite of tools to disrupt the supply chain networks that enable the Houthis’ destabilizing activities.”

Key among the designated entities is Shenzhen Boyu Imports and Exports Co., Limited, a China-based logistics and shipping firm that has transported dual-use components for the Houthis. The company is accused of facilitating multiple shipments of military-grade items, enabling the Houthis to maintain their missile and UAV production capabilities. By relying on commercial shipping methods, Shenzhen Boyu allegedly aided Houthi operatives in evading detection.

China-Based Technology Suppliers

In addition to Shenzhen Boyu, two other Chinese companies, Shenzhen Jinghon Electronics Limited and Shenzhen Rion Technology Co., Ltd., have been implicated in supplying critical components to the Houthis. These firms have provided tens of thousands of dollars’ worth of dual-use components, which have been crucial in advancing the Houthis’ domestic missile and UAV production efforts.

Shenzhen Rion, in particular, has been linked to the shipment of hundreds of advanced components for missile guidance systems, marking it as a key supplier in the Houthi arsenal. This entity had already been sanctioned in July 2024 under a separate executive order for its role in providing support to Iran’s Ministry of Defense and Armed Forces Logistics.

Iranian Coordination and Smuggling Routes

Iran has long been identified as a key supporter of the Houthis, and the new sanctions include an Iranian national, Hasan Ahmad Hasan Muhammad al-Kuhlani, who is accused of facilitating Houthi weapons smuggling operations. Al-Kuhlani has allegedly coordinated the transport of lethal aid from Iran to Houthi forces, working to obscure the origins of the shipments to avoid detection.

The inclusion of Iranian elements in the network highlights the deepening ties between the Islamic Revolutionary Guard Corps (IRGC) and the Houthi movement. The IRGC has been instrumental in providing military and logistical support to the Houthis, a relationship that the U.S. Treasury is increasingly focused on dismantling.

Oil Shipments and Financial Networks

The sanctions also target entities involved in illicit oil shipments that provide significant financial support to both the Houthis and their Iranian backers. The Gabon-flagged vessel IZUMO and the Cook Islands-flagged FRUNZE, both linked to Marshall Islands-registered Gemini Marine Limited, have been implicated in transporting petroleum products for the Houthi financial network led by Sa’id al-Jamal. Al-Jamal’s network is believed to have generated tens of millions of dollars in illicit oil revenue, which has been used to fund Houthi operations, including attacks on commercial vessels in the Red Sea.

By targeting these vessels and their parent company, the Treasury aims to sever the financial lifeline that has sustained the Houthis’ military efforts, while also addressing the broader destabilizing activities carried out by Iran in the region.

Broad Implications for Sanctions Violations

The sanctions imposed by OFAC carry significant implications for individuals and entities that engage in transactions with the designated persons or companies. All property and interests in property belonging to the named individuals and entities within the U.S. are now blocked, and U.S. persons are prohibited from engaging in transactions with them. Additionally, non-U.S. persons who facilitate such transactions may also face secondary sanctions, particularly those that involve financial institutions conducting significant transactions on behalf of Specially Designated Global Terrorists.

OFAC’s stringent enforcement of these measures underscores the U.S. government’s commitment to curbing the flow of arms and financial resources to the Houthis, while also sending a clear signal to international actors who might be tempted to engage with the sanctioned networks.

A Continued Campaign

This latest round of sanctions is part of a broader U.S. strategy to address the complex web of illicit activities that sustain the Houthi movement. As the Houthis continue to target civilian populations and commercial vessels in the region, the U.S. government is ramping up efforts to cut off their access to critical military-grade materials and financial resources. By exposing and disrupting the networks that facilitate these operations, the Treasury Department seeks to weaken the Houthi’s ability to wage war and destabilize the region.

As the conflict in Yemen persists, these sanctions represent a key tool in the U.S. arsenal, designed to bring pressure not only on the Houthis but also on the foreign actors that enable their operations.