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Ministry of Social Affairs Suspends Civil Society Organizations’ Dealings with Exchange Companies

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published on

Aug 24, 2025


The Ministry of Social Affairs and Labor in Aden announced today, Sunday, the suspension of opening any new accounts for civil society organizations with money exchange companies and institutions licensed by the Central Bank in Aden. Existing accounts will be frozen, and organizations are required to coordinate with the Ministry to complete procedures for transferring their balances to accredited banks.


The directive, issued by H.E. Dr. Mohammed Saeed Al-Zaouri, Minister of Social Affairs and Labor, and addressed to the Acting Undersecretary of the Social Development Sector, directors of the Ministry’s offices in the governorates, and executive managers of exchange companies, stated that the decision comes within the Ministry’s supervisory and regulatory role over the activities of civil society organizations, following the detection of accounts opened by such organizations at exchange companies during the period of banking sector disruptions.


The circular confirmed that this measure is based on applicable laws, foremost among them Law No. (1) of 2001 concerning Associations and Charitable Foundations, Law No. (1) of 2010 concerning Anti-Money Laundering and Combating the Financing of Terrorism and its amendments, in addition to related resolutions of the National Defense Council, the Presidential Leadership Council, and the Council of Ministers, including the decision banning the use of foreign currencies as a substitute for the national currency in commercial and financial transactions.


Minister Al-Zaouri stressed that the decision aims to strengthen principles of transparency and accountability in the work of civil society organizations and to prevent any practices that could be exploited in financing illicit activities. The circular further obliged all local organizations to promptly coordinate with the Ministry to regularize their status and transfer their balances to accredited banks, with all procedures to be completed no later than the end of December 2025

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