US sanctions 10 over cash transfers to Hezbollah network

New York: The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) said it has imposed sanctions on 10 individuals that are “part of a network responsible for transferring cash” to Hezbollah.

The network utilises couriers travelling on commercial airline flights between Lebanon, Turkey, the UAE, and Iran to move up to hundreds of millions of dollars between jurisdictions, providing an avenue outside the formal financial system for Hezbollah to obtain foreign currency and evade sanctions, OFAC claimed in a press release posted on the website of the Department of the Treasury.

“The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating 10 individuals that are part of a network responsible for transferring cash to Hizballah. The network utilizes couriers travelling on commercial airline flights between Lebanon, Turkiye, the UAE, and Iran to move up to hundreds of millions of dollars between jurisdictions, providing an avenue outside the formal financial system for Hizballah to obtain foreign currency and evade sanctions,” said the press release.

“OFAC is also re-designating Hizballah for service to the Iranian regime under the command of Iran’s Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF),” it added.

“Today’s action is being taken pursuant to the United States’ counterterrorism authority, Executive Order (E.O.) 13224, as amended.”

The release reiterates that the US Department of State designated Hizballah as a Specially Designated Global Terrorist (SDGT) pursuant to E.O. 13224 on October 31, 2001, “for having committed, or posing a significant risk of committing, acts of terrorism that threaten the security of U.S. nationals or the national security, foreign policy, or economy of the United States.”

The Treasury Department also mentioned that Hezbollah and its allies exploit financing schemes including oil smuggling, illicit shipping, commodities sales, and bulk cash smuggling to generate and move funds across the region.

“The network targeted today, which was once associated with now-deceased IRGC-QF finance official Behnam Shahriyari, is one example of the methods used to funnel support to terrorist proxy groups throughout the region.”