The United States of America is focusing on pursuing the alternative financing channels that Hezbollah has resorted to in the wake of the tightening of the financial sanctions imposed on it, and the escalation of pressures aimed at drying up its traditional sources of funding, most notably Iranian funds, which have, over the years, formed a fundamental basis for financing the party, strengthening its military and security capabilities, and expanding its political influence in Lebanon.
American efforts are not limited to limiting the flow of Iranian funds to Hezbollah, but rather extend to tracking alternative financing paths and networks that the party may resort to to compensate for any decline in this support, whether through external sources of funding or through cross-border economic and commercial channels.
Reuters' announcement last week that Hezbollah had received $200 million in cash from Iran last month, to help tens of thousands of families displaced by the war, constituted an alarm bell that prompted a comment from the US State Department, in which it ruled out this amount reaching the party, but stressed, at the same time, "continuing pressure on its funding sources through sanctions, in parallel with supporting the legitimate Lebanese government's ability to reconstruct the south."
The director of the Middle East Institute for Strategic Affairs, Dr. Sami Nader, considers that we are currently witnessing “a new episode of American sanctions on Iran and its arms to complete the process of restricting it,” pointing out that “the issue is not related to (Hezbollah), but rather to Iran fundamentally, especially after the recent American announcement that considered the party an integral part of the Iranian (Revolutionary Guard).”
Nader pointed out in a statement to Asharq Al-Awsat that “Tehran has developed alternative channels and methods to circumvent the attempt to financially blockade it and restrict it, most notably the issue of gold and cryptocurrencies... which are developing networks in the region linked to Iran and (Hezbollah),” explaining that “the new sanctions target alternative means... and therefore if it is true that there are cryptocurrency offices, there is no doubt that the Lebanese state will be asked to close them and deal with them, and control any dealings with gold.”
Over many years, Hezbollah has relied on multiple sources of funding, especially under previous eras and governments that turned a blind eye to billions of dollars reaching it, even through official border facilities.
Economist Antoine Farah talks about 4 main sources that the party has adopted for funding. He says: “The first source is direct Iranian financing, through the money that Tehran sent to him periodically. The second source is represented by illegal activities, especially drug smuggling and the Captagon trade, in which the party was active inside and outside Lebanon, especially in a number of Latin American countries. The third source, according to Farah, is “the generous donations that the party was receiving from Shiite financiers and supporters in various parts of the world.” And the fourth source in the camouflaged business network that the party established to secure additional sources of funding, and use them to launder money and hide its sources and destinations.”
Farah points out in a statement to Asharq Al-Awsat: “If we want to evaluate what remains of these sources today, we notice that the party is facing a significant decline in its ability to benefit from most of them... It is also facing increasing pressure as a result of the legislative and supervisory measures that are being strengthened in Lebanon.”
In this context, “the importance of the amendments being introduced to Law No. (44) related to combating money laundering and the financing of terrorism is highlighted, especially with regard to identifying the real economic beneficiary of companies and commercial projects. The focus on knowing the actual beneficiary of any commercial activity, and revealing the sources and destinations of funds, would tighten the noose on the camouflaged businesses established by the party,” says Farah.
Farah points out that “the Bank of Lebanon is also taking measures to regulate the work of money changers and money transfer companies, as it has become impossible to exploit these two sectors except to transfer money and pass funding to the party.”
