Lebanon and US combating illicit finance

Lebanon and US combating illicit finance the past week witnessed intense American activity against illicit finance in Lebanon, especially with regards to Iranian-backed group, Hezbollah.

From issuing warnings and sanctions to visiting the Lebanese presidential palace in Baabda, the United States’ objective is aimed at curbing the aforementioned group’s financial system, thus weakening its ability to fund its activities and undermining Beirut’s financial system and legitimate institutions.

Lebanese presidency and US treasury delegation meeting in Baabda Palace

On November 9, 2025, the Lebanese President General Joseph Aoun met with a delegation from the United States Treasury at Baabda Palace. The latter was headed by Sebastian Gorka and included US Under Secretary of the Treasury for Terrorism and Financial Intelligence, John Hurley, and counterterrorism expert at the US National Security Council, Rudolph Atallah.

The two parties stressed one key issue: addressing and tackling illicit finance, particularly Anti-Money Laundering (AML) and the Countering Financing of Terrorism (CFT). Money Laundering (ML) is the process of disguising the origins of illicit funds, making them appear legitimate, while Financing Terrorism (FT) involves providing financial support for terrorist activities, which can come from both legal and illegal sources.

During the presidential palace meeting, President Aoun asserted that his country “rigorously applies the established procedures to prevent money laundering, smuggling, or its use in financing terrorism, and severely punishes financial crimes of all kinds.” On another note, Aoun reiterated to the American delegation his readiness to negotiate with Israel to stop its raids, calling for “the necessity of pressuring it to halt its ongoing attacks.”

Ongoing US pressure on Hezbollah’s financial system

The US delegation’s visit comes within a specific context, one of countering Hezbollah activities and presence, especially in terms of finance. American rhetoric and actions against the group’s financing are not new, but rather persistent policies that US bipartisan administrations have adopted.

On September 2025, US Special Envoy Tom Barrack claimed in an interview that “during this period, Hezbollah received up to $60 million per month from somewhere.” As Lebanese monetary authorities believe it to be impossible for the Lebanon’s banking system or licensed money transfer companies to handle such an amount (due to AML/CFT measures), many claim that the primary source of funding is thus coming from the group’s longstanding ally: Iran.

This stance was confirmed by the US Department of the Treasury, on November 6, 2025. The department’s Office of Foreign Assets Control (OFAC) issued sanctions on 3 financial operatives funneling tens of millions of dollars from Iran to Hezbollah in 2025. Claiming that the decision aligns and contributes to the disarmament of the group, which it accused of utilizing these funds to “to support its paramilitary forces, rebuild its terrorist infrastructure, and resist the Lebanese government’s efforts to assert sovereign control over all Lebanese territory”), OFAC the U.S.-designated Iranian Islamic Revolutionary Guards Corps-Qods Force (IRGC-QF) of transferring $1 billion to Hezbollah, “mostly through money exchange companies.” From here, Under Secretary of the Treasury for Terrorism and Financial Intelligence, John K. Hurley, believed that

Lebanon has an opportunity to be free, prosperous, and secure, but that can only happen if Hezbollah is fully disarmed and cut off from Iran’s funding and control.

Who are the 3 designated Hezbollah operatives sanctioned by OFAC?

According to OFAC’s press release, the following individuals have been added to the Specially Designated Nationals (SDN) List, for having “materially assisted, sponsored, or provided financial, material, or technological support for, or goods and services to or in support of, Hezbollah”:

-          Ossama Jaber: a Hezbollah member supporting the aforementioned money exchange efforts.  He works directly with Lebanese money changers and exchange companies, personally collecting money or converting tens of millions of dollars via several money changers and exchange companies (some of which were owned by, or associated with, Hezbollah members) for the Iranian-backed group.

-          Samer Kasbar: director of U.S.-designated Hezbollah front company “Hokoul SAL Offshore Company.” Kasbar regularly collaborates with the group’s finance team members on business deals.

-          Ja’far Muhammad Qasir: in charge of the Hezbollah finance team’s management as well as the group’s revenue-generating economic portfolio.