Legislative Effectiveness in Combating Money Laundering in Yemen

Abstract

This study evaluates the legislative effectiveness of the Yemeni legal framework in combating money laundering, particularly amidst the exceptional circumstances and armed conflicts that have fueled illicit financial flows. Utilizing a descriptive-analytical approach, the research examines the provisions of Yemeni Law No. (1) of 2010 and its amendments, measuring their compliance with international standards, specifically the Financial Action Task Force (FATF) recommendations.

The study reveals that while Yemen has established a solid legal and institutional infrastructure (notably the National Committee and Financial Intelligence Units), the system suffers from procedural gaps in addressing modern financial technologies. Furthermore, political instability has fragmented financial oversight, creating a significant tension between banking secrecy protocols and the requirements for financial disclosure and transparency, thereby hindering effective tracing and prosecution.

The study recommends legislative updates to ensure the comprehensiveness of predicate offenses and the activation of international cooperation mechanisms for financial data exchange. It emphasizes establishing a legislative balance that permits the lifting of banking secrecy in cases of criminal suspicion, while strengthening the independence of regulatory bodies to ensure the rule of law and prevent impunity in unstable environments.