The US Treasury on Monday announced a new set of sanctions linked to a counterfeit Yemeni currency scheme allegedly involving Iran's elite Quds Force of the Islamic Revolutionary Guard Corps (IRGC).

The scheme produced Yemeni banks "potentially worth hundreds of millions of dollars" for the IRCGC's Quds Force operating in the country, which has witnessed a devastating civil conflict involving regional actors, including a Saudi Arabia-led coalition.

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Two German firms were also hit by the sanctions and the assets freeze: one for being "owned or controlled" by Reza H., the leading suspect in the scheme, and another for "having acted for or on behalf" of him.

The two German companies were used as "front companies to deceive European suppliers, circumvent export restrictions, and acquire advanced printing machinery, security printing machinery, and raw materials" in support of the counterfeit currency scheme.

Yemen: An ever-worsening crisis War: The 'root cause' of Yemen's disasters The UN has identified conflict as the "root cause" of Yemen's crises. Tens of thousands of people have been killed since the war erupted in 2014, when Shiite Houthi rebels launched a campaign to capture the capital, Sanaa. In March 2015, a Saudi-led coalition launched a deadly campaign against the rebels, one that has been widely criticized by human rights groups for its high civilian death toll.

Yemen: An ever-worsening crisis Fighting keeps food from the famished The conflict has prevented humanitarian aid from reaching large parts of the civilian population, resulting in more than two-thirds of the country's 28 million people being classified as "food insecure." Nearly 3 million children and pregnant or nursing women are acutely malnourished, according to the UN World Food Program.

Yemen: An ever-worsening crisis Displacement: Converging crises More than 3 million people have been displaced by conflict, including marginalized communities such as the "Muhammasheen," a minority tribe that originally migrated from Africa. Despite the civil war, many flee conflict in Somalia and head to Yemen, marking the convergence of two major migration crises in the Middle East nation. Yemen hosts around 250,000 Somali refugees, according to UNHCR.

Yemen: An ever-worsening crisis Cholera: A deadly epidemic The number of suspected cholera cases has exceeded more than 2 million and least 3,700 people have died from the waterborne bacterial infection in Yemen since October 2019, said the WHO. Although cholera can be easily treated, it can kill within hours when untreated.

Yemen: An ever-worsening crisis Unsuspecting victims of the'war on terror' In Yemen, violence goes beyond civil conflict: It is considered a strategic front in the war on terrorism. The country serves as the operational base for al-Qaida in the Arabian Peninsula, dubbed the "most dangerous" terrorist group before the rise of the "Islamic State." The US routinely uses drones to target al-Qaida leadership. However, civilians have often been killed in the operations.

Yemen: An ever-worsening crisis Children's fate: Future marred by tragedy In a country paralyzed by conflict, children are one of the most at-risk groups in Yemen. More than 12 million children require humanitarian aid, according to the UN humanitarian coordination agency. The country's education system is "on the brink of collapse," while children are dying of "preventable causes like malnutrition, diarrhea and respiratory tract infections," according to the agency.

Yemen: An ever-worsening crisis Peace: An elusive future Despite several attempts at UN-backed peace talks, the conflict continues to rage on. Saudi Arabia has vowed to continue supporting the internationally recognized government of Yemeni President Abed Rabbo Mansour Hadi. On the other hand, Houthi rebels have demanded the formation of a unity government in order to move forward on a political solution. A peace deal, however, remains elusive. Author: Lewis Sanders IV



'Nefarious objectives'

US Treasury Secretary Steven Mnuchin said the scheme struck at the "heart of the international financial system," showing how elements of the Iranian government undermine international norms aimed at safeguarding financial systems.

"This scheme exposes the deep levels of deception the IRGC-Quds Force is willing to employ against companies in Europe, governments in the Gulf and the rest of the world to support its destabilizing activities," Mnuchin said.

"This counterfeiting scheme exposes the serious risks faced by anyone doing business with Iran, as the IRGC continues to obscure its involvement in Iran's economy and hide behind the facade of legitimate businesses to perpetrate its nefarious objectives."

Since US President Donald Trump assumed office in January, the White House has pursued an aggressive strategy on Iran. In October, Trump refused to certify the nuclear deal, which provided sanctions relief in exchange for Tehran dropping its nuclear program.

The White House has since launched a new sanctions regime targeting the IRGC, labeling it a "supporter of terrorism" for backing the Quds Force, which also conducts operations outside the Islamic republic.