Ask MAT – Mauritius is under US scrutiny for Houthi Sanction Busting. Is the Houthi movement in Yemen a terrorist organisation?

MAY SAYS- Thank you for a great question, albeit one that is complex and not simple to answer

MY THOUGHTS ARE AS FOLLOWS:-

WHO OR WHAT IS A TERRORIST?

1. The term “terrorist” is politically charged and often applied selectively based on strategic interests.
2. The question of whether the Houthi movement in Yemen, also known as Ansar Allah, is a terrorist organisation is complex and depends on perspectives, legal designations, and geopolitical contexts.
3. The Houthis’ actions—such as targeting civilians and infrastructure—fit standard definitions of terrorism. Still, their governance role and participation in peace talks blur the line between a rebel group and a terrorist organisation.

IN CONSIDERING MY OPENING STATEMENTS, THE FOLLOWING SHOULD BE CONSIDERED:-

IRAN

1. IRAN supports it by providing it with military aid and viewing it as a strategic ally in the region (https://www.cfr.org/in-brief/irans-support-houthis-what-know).

THE USA, SAUDI ARABIA, AND ITS ALLIES:

1. THE U.S. designates the Houthis a foreign terrorist organisation (FTO) due to their involvement in attacks against international interests and their role in the ongoing conflict in Yemen (https://www.cfr.org/in-brief/irans-support-houthis-what-know).
2. The U.S. designation reflects its geopolitical aim to counter Iran and protect shipping lanes, but risks oversimplifying a multifaceted conflict.

SAUDI ARABIA AND ITS ALLIES:

1. In 2016, Saudi Arabia and its Gulf Cooperation Council (GCC) allies officially classified the Houthis as a terrorist organisation.
2. Subsequent actions, such as Saudi Arabia’s support for US designations and its sanctions on Houthi leaders and entities, reinforced this.

MAURITIUS PERSPECTIVE,

1. I’m unaware that the Mauritian government has designated the Houthi movement; therefore, the only test is from the United Nations,  a minimum requirement for Mauritian firms to follow in the UN.

THE UN

1. The UN has not designated the Houthis as a terrorist organisation but has condemned their actions and called for a peaceful resolution to the conflict (https://www.bbc.com/news/world-middle-east-68182879).

THE INTERNATIONAL PERSPECTIVE

1. European Union:
   1. The EU has imposed sanctions on Houthi leaders, BUT HAS NOT officially designated the group as a terrorist organisation (https://www.bbc.com/news/world-middle-east-68182879).
2. Other countries:
   1. An international coalition of 13 countries has threatened a military response if the Houthis continue their attacks on shipping in the Red Sea (https://www.fdd.org/analysis/op_eds/2024/01/03/13-countries-threaten-houthis-with-military-response-if-attacks-against-shipping-continue/ ). On Jan. 3, the White House released a joint statement by the United States, Australia, Bahrain, Belgium, Canada, Denmark, Germany, Italy, Japan, the Netherlands, New Zealand, Singapore, and the United Kingdom warning the Houthis to cease attacks on international shipping.

US RISK TO MAURITIUS

1. The U.S. can sanction non-American firms, such as a Mauritanian firm, for not adhering to U.S. sanctions designations, including those on the Houthis.
2. Here are a few key points:

1. Secondary Sanctions: The U.S. can impose secondary sanctions on non-U.S. entities that engage in significant transactions with individuals or entities designated under U.S. sanctions. Even if a company is not based in the U.S., it can still face penalties for doing business with sanctioned parties.
2. Material Support: Providing material support to designated terrorist organisations, like the Houthis, can lead to sanctions. This includes financial transactions, shipping goods, or other forms of support.
3. Global Financial System: Many international banks and financial institutions comply with U.S. sanctions to maintain access to the U.S. financial system. This can make it difficult for sanctioned entities to conduct global business.
4. Reputational Risks: Being associated with sanctioned entities can harm a company's reputation and ability to do business with other international partners.
5. https://ofac.treasury.gov/faqs/all-faqs / https://ofac.treasury.gov/faqs/11

MATS CONCLUSION –

1. As mentioned, the nature of terrorism and its designation are fraught with difficulties. For a Mauritian firm, the absence of a Houthi terrorist designation in local law does not eliminate risks, particularly in an international financial centre handling US currency or engaging with US agents.
2. The US FTO, SDGT designations, and FATF expectations create significant legal and reputational risks for firms transacting with Houthi-linked entities.
3. I advise adopting a proactive, risk-averse approach: implement enhanced due diligence, comply with US sanctions, align with global AML/CTF standards, and prioritise reputational integrity. Here’s a structured approach:
1. Screen Counterparties: Implement robust Know Your Customer (KYC) and sanctions screening processes to identify any links to Houthi-affiliated entities, individuals, or vessels. Use databases like the US Treasury’s OFAC SDN List to check for sanctioned parties, including Houthi leaders (e.g., Sa’id al-Jamal, Hashem al-Madani), front companies, or banks like Yemen Kuwait Bank.
2. Trace Transaction Chains: When dealing with US currency or US financial institutions, scrutinise the origin and destination of funds. Transactions involving Yemen, Iran, or Houthi-controlled ports (e.g., Hodeidah) should trigger EDD to detect potential money laundering or sanctions evasion.
3. Monitor Cryptocurrency Risks: Given the Houthis’ use of cryptocurrency (e.g., wallets receiving over USD 330 million), ensure any digital asset transactions are screened for links to sanctioned addresses
4. The firm can safeguard its operations, maintain access to global markets, and avoid entanglement in the complex web of Houthi financing networks.

BELOW, I OUTLINE THE ABOVE KEY POINTS FURTHER TO PROVIDE A CRITICAL ANALYSIS:

Background on the Houthi Movement

1. Origins and Ideology:
1. The Houthis are a Zaydi Shia Islamist political and military organisation that emerged in the 1990s in northern Yemen. Initially formed to address the marginalisation of the Zaydi Shia community, the movement evolved into a significant political and military force. They opposed Yemen’s government, which they accused of corruption and alignment with foreign powers like Saudi Arabia and the United States.
2. Control and Actions:
1. The Houthis control much of northern Yemen, including the capital, Sanaa, and the key port of Hodeidah.
2. They have been central to Yemen’s civil war since 2014, engaging in military campaigns against the Yemeni government and a Saudi-led coalition.
3. Their actions include missile and drone attacks on Saudi Arabia, the UAE, Israel, and commercial shipping in the Red Sea, often citing support for Palestinian causes or opposition to Western influence.

Designations as a Terrorist Organisation

United States:

1. The U.S. designated the Houthis as a Foreign Terrorist Organisation (FTO) in January 2021 under the Trump administration, citing their attacks on civilians, infrastructure, and shipping. The Biden administration reversed this in February 2021 due to concerns over humanitarian aid disruptions in Yemen, where millions rely on assistance.
2. In January 2024, the U.S. redesignated the Houthis as a Specially Designated Global Terrorist (SDGT) group, effective February 2024, due to their attacks on Red Sea shipping.
3. In January 2025, the Trump administration reinstated the FTO designation, emphasising their “unrelenting campaign of piracy, violence, and terrorism.”
4. The U.S. argues these designations hold the Houthis accountable for actions threatening regional stability and global commerce, though critics warn they complicate humanitarian efforts.

Other Countries:

1. The UN and European countries
1. Have not formally designated the Houthis as a terrorist organisation, expressing concerns that such labels could hinder peace talks and aid delivery.
2. Saudi Arabia, the UAE, and other Gulf states
1. View the Houthis as a terrorist group due to their cross-border attacks, including drone and missile strikes on civilian and oil infrastructure.
3. Yemen’s internationally recognised government also labels them as terrorists.
1. Yemen’s National Defence Council designated the Houthis as a terrorist group in October 2022, citing their violence against civilians.
2. However, the Houthis maintain significant local support in areas they control, presenting themselves as defenders of Yemeni sovereignty and anti-imperialist causes.

Counterarguments Against Terrorist Designation

1. Political Legitimacy:
1. The Houthis argue they are a legitimate political movement fighting for Yemen’s sovereignty and representing Zaydi Shia interests. They control significant territory and have participated in UN-sponsored talks, such as the 2013–2014 National Dialogue Conference. They propose a republican system with elections, rejecting Iran’s cleric-led model.
2. Humanitarian Concerns:
1. Critics of the terrorist designation, including humanitarian groups and some European nations, argue it risks exacerbating Yemen’s humanitarian crisis, where 19.5 million people need aid in 2025. The designation can deter aid organisations and banks from operating in Houthi-controlled areas due to legal and financial risks, even with U.S. waivers for humanitarian activities.
3. Geopolitical Context:
1. Some view the Houthis’ actions, like Red Sea attacks, as a response to regional dynamics, such as Israel’s blockade of Gaza or Saudi-led intervention in Yemen. They frame their violence as resistance against foreign interference, a narrative that resonates with their base and complicates the terrorist label.
4. Selective Labelling:
1. Critics note that other groups in Yemen, like al-Qaeda in the Arabian Peninsula (AQAP), are universally designated as terrorists. At the same time, the Houthis’ designation is more contested, suggesting political motivations behind U.S. and Gulf state policies. The Biden administration’s initial reversal of the FTO label aimed to balance security and humanitarian priorities.

Actions Cited as Terrorist

1. Attacks on Civilians and Infrastructure:
   1. The Houthis have been accused of targeting civilians in Yemen, using child soldiers, obstructing humanitarian aid, and deploying landmines and explosive devices indiscriminately. Their attacks on Saudi Arabia, the UAE, and Israel, as well as Red Sea shipping, have drawn international condemnation.
2. Red Sea Shipping Attacks:
   1. Since November 2023, the Houthis have launched missile and drone attacks on commercial and military ships in the Red Sea and Gulf of Aden, disrupting global trade. They claim these target vessels are linked to Israel, but many attacks have affected unrelated shipping, endangered mariners and violated international maritime law.
3. Human Rights Abuses:
   1. Reports document Houthi policies of sexual violence, repression of women, and incitement of violence based on religion or nationality, further fueling accusations of terrorism.
4. Foreign Backing:
   1. The Houthis receive support from Iran, including weapons, training, and technical assistance, which has been cited as evidence of their role in Iran’s “Axis of Resistance.”
   2. They have also reportedly sought advanced weaponry from Russia and collaborated with groups like al-Qaeda in the Arabian Peninsula (AQAP) and al-Shabaab, raising concerns about their terrorist affiliations.

Critical Analysis

1. Ambiguity of “Terrorism”:
1. The term “terrorist” is politically charged and often applied selectively based on strategic interests. The Houthis’ actions—such as targeting civilians and infrastructure—fit standard definitions of terrorism, but their governance role and participation in peace talks blur the line between a rebel group and a terrorist organisation.
2. The U.S. designation reflects its geopolitical aim to counter Iran and protect shipping lanes, but risks oversimplifying a multifaceted conflict.
2. Iran’s Role:
1. While Iran’s support for the Houthis is well-documented, the extent of control is debated. The Houthis have their agenda and local legitimacy, suggesting they are not merely an Iranian proxy. This autonomy complicates efforts to address their actions solely through sanctions or military strikes.
3. Impact on Yemen:
1. The FTO designation may deter Houthi attacks by increasing pressure, but could also entrench their anti-American stance, polarise Yemen’s politics, and hinder peace efforts. The humanitarian fallout remains a significant concern, as aid disruptions could worsen famine and displacement.
4. Double Standards:
1. The Saudi-led coalition, backed by the U.S. and UK, has also been criticised for civilian casualties and exacerbating Yemen’s humanitarian crisis through blockades, yet it faces no terrorist designation. This inconsistency fuels perceptions of bias in how the term is applied.

Conclusion

1. The Houthi movement is designated as a terrorist organisation by the United States (as of January 2025), Saudi Arabia, the UAE, and Yemen’s government, primarily due to their attacks on civilians, infrastructure, and international shipping, as well as their human rights abuses and Iranian backing.
2. However, the label is not universally accepted, with the UN, European nations, and humanitarian groups highlighting the Houthis’ political role and the potential humanitarian costs of the designation.
3. Critics argue that the Houthis’ actions, while violent, are part of a broader resistance against foreign intervention, and their local support and governance functions complicate the terrorist classification.
4. Ultimately, whether the Houthis are a terrorist organisation depends on the legal, political, or humanitarian lens.
5. Their actions meet many criteria for terrorism, but the designation’s effectiveness and fairness remain debated in the context of Yemen’s complex civil war and regional power struggles. For a definitive answer, one must weigh the evidence of their violent tactics against their political aims and the broader geopolitical narrative, which is far from impartial.