US steps up oversight of Hezbollah’s alternative financing — Asharq Al-Awsat
The United States is stepping up efforts to track alternative financing channels of the Lebanese group Hezbollah amid tougher sanctions that threaten its traditional funding sources, primarily transfers from Iran. The campaign covers not only restrictions on Iranian transfers but also monitoring of overseas financial networks and cross-border commercial activity that the group may use to offset a possible reduction in support from Tehran, Asharq Al-Awsat reports.
Last week, Reuters reported that Hezbollah received $200 million in cash from Iran to assist tens of thousands of families displaced by the war. The US State Department expressed doubt that these funds had reached the group, while confirming its intention to continue applying sanctions pressure on its funding sources.
Gold and cryptocurrencies
Sami Nader, director of the Middle East Institute for Strategic Affairs, described these measures as part of a new round of US sanctions aimed at increasing financial pressure on Iran and regional structures linked to it. According to him, Tehran has developed alternative mechanisms to circumvent financial restrictions, including through gold and cryptocurrency transactions.
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Nader also said that if cryptocurrency offices linked to such networks are identified in Lebanon, Lebanese authorities will likely be asked to close them and take appropriate measures. In his assessment, oversight of gold transactions may also be strengthened.
Tightening financial oversight
Economist Antoine Farah named four main sources of Hezbollah’s funding: direct support from Iran through regular transfers, illegal activity, donations from Shiite financiers and supporters in various countries, and a network of front companies. According to him, the group’s ability to use most of these channels has significantly diminished due to stronger legislative and regulatory measures in Lebanon.
Among these steps, Farah highlighted amendments to Law No. 44 on combating money laundering and terrorist financing. They provide for identifying the ultimate beneficial owners of companies and commercial enterprises, which, in the economist’s view, may complicate the activities of structures used to conceal the origin and purpose of funds. Banque du Liban is taking measures to regulate the activities of exchange offices and money transfer companies.
