US Designates Houthis as Terrorist Group, Issues General Licenses

The U.S. this week announced plans to designate the Yemen-based Houthis as a terrorist organization, which will subject them to strict financial sanctions that will restrict their access to funding and financial markets, the White House said Jan. 17. The designation comes after months of Houthi-led attacks on commercial ships transiting the Red Sea and the Gulf of Aden (see 2401030065 and 2401050066), which National Security Adviser Jake Sullivan said “fit the textbook definition of terrorism.”

The Houthis will be labeled as a Specially Designated Global Terrorist effective Feb. 16, which Sullivan said will give the U.S. and others time to ensure “robust humanitarian carve outs are in place” so the sanctions don’t harm the people of Yemen. Sullivan said commercial shipments into Yemeni ports, such as for food, medicine and fuel, “should continue and are not covered by our sanctions.”

Although the Houthis “must be held accountable for their actions,” Secretary of State Antony Blinken said the agency is using the 30-day delayed implementation to make sure the new sanctions don’t stop aid from getting to the country. That will include conversations with “stakeholders, aid providers, and partners” who help ship “critical commodities” and deliver humanitarian aid to Yemen.

Sullivan added that the U.S. will “immediately reevaluate” the designation if the Houthis stop their attacks on cargo ships. As a result of the designation, transactions by U.S. persons or within (or transiting) the United States involving Ansarallah, known as the Houthis, will be blocked, unless they are otherwise authorized.

The Treasury Department on Jan. 17 issued five new general licenses that authorize certain transactions with the Houthis involving aid, remittances, fuel and more. Each license takes effect Feb. 16.

• GL No. 22 authorizes certain transactions with the Houthis, also known as Ansarallah, that involve agricultural commodities, medicine, medical devices, software updates for medical devices and more.
• GL No. 23 authorizes certain transactions involving the “transmission of telecommunications” with the Houthis, including Internet-based communications. Those transactions include the lease or sale of telecommunications equipment or technology.
• GL No. 24 authorizes certain transactions with the Houthis involving noncommercial, personal remittances to people in Yemen. Those transactions are authorized as long as the person receiving the remittances is not sanctioned under the Global Terrorism Sanctions Regulations.
• GL No. 25 authorizes certain transactions involving refined petroleum products in Yemen, including petroleum for personal, commercial or humanitarian use in the region.
• GL No. 26 authorizes certain transactions necessary to port and airport operations involving the Houthis in Yemen, including the import or export of goods or transit of passengers through Yemen ports.

Treasury also issued a new frequently asked question to outline the impact of the new designation, saying all transactions by U.S. people or companies "within (or transiting) the United States involving" the Houthis will be blocked. Non-U.S. people and companies may participate in transactions with the Houthis "for which a U.S. person would not require a specific license" under the Global Terrorism Sanctions Regulations. The agency also stressed that Yemen "is not subject to jurisdiction-based sanctions, nor will it become subject to jurisdiction-based sanctions" when the Houthi designation takes effect next month.

Lawmakers in recent weeks have called on the U.S. to designate the Houthis as a Specially Designated Global Terrorist and criticized the decision to rescind the group’s designation in 2021 (see 2401080046 and 2312150038). The U.S. said it rescinded the designation because it was concerned the sanctions could impede Yemen’s access to humanitarian aid (see 2102100016).

Sen. Dan Sullivan, R-Alaska, and House Foreign Affairs Committee Chairman Michael McCaul, R-Texas, both issued statements welcoming the White House announcement but saying it should have gone further by also designating the Houthis as a foreign terrorist organization. An FTO designation would provide additional restrictions, such as a full blocking of visas for Houthi members, and a requirement that U.S. banks report any Houthi funds in their possession to the Treasury Department. It also would allow the Justice Department to prosecute any American who swears allegiance or provides material support to the Houthis.

“We need to see more tough action against Iran and its terrorist proxies to protect American service members and our allies, and to deter a wider conflict,” Sullivan said.