The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced a new series of actions today aimed at dismantling the financial infrastructure of Hizballah.
The latest measures differ from previous sanctions by specifically targeting two distinct lines of effort that the organization relies upon to maintain its economic stability: revenue generation schemes orchestrated in collusion with the Iranian regime and the systemic exploitation of Lebanon’s informal financial sector.
According to the statement released by the Treasury, these actions are designed to disrupt the flow of funds that support Hizballah’s operations. One prong of the initiative focuses on the deep-rooted financial ties between Hizballah and Tehran. US officials stated that the group has long relied on the Iranian regime for substantial funding, and today’s designations aim to sever specific channels used to transfer this revenue. The Treasury asserts that this collusion allows the group to fund its activities despite international pressure.
In addition to the Iranian connection, OFAC has placed a spotlight on the group’s activities within Lebanon. The action targets the abuse of Lebanon’s informal financial sector, which operates outside the traditional banking system. As Lebanon continues to face a severe economic crisis, reliance on unregulated money exchange houses and informal transfer networks has grown. The US government indicates that Hizballah has increasingly utilized these unregulated avenues to bypass international sanctions and access global currencies. By targeting these informal networks, the Treasury aims to close loopholes that have allowed the group to move capital undetected.
As a consequence of today’s action, all property and interests in property of the designated individuals and entities that are in the United States or in the possession or control of US persons are blocked and must be reported to OFAC. Furthermore, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. US regulations generally prohibit all dealings by US persons or within the United States that involve any property or interests in property of designated or otherwise blocked persons.
This development marks a continuation of the United States’ long-standing policy to counter terrorism financing. Treasury officials emphasized that they remain committed to using all available enforcement tools to protect the international financial system and to deny resources to groups that contribute to regional instability. The disruption of these specific revenue streams is expected to complicate Hizballah’s ability to manage its finances amidst the ongoing economic volatility in the region.
