US and Gulf partners impose joint sanctions on Hezbollah’s financial network

The United States Treasury Department, in coordination with its Gulf partners, has announced joint sanctions against five entities and 16 individuals allegedly linked to Hezbollah's financial infrastructure.

The United States Treasury Department, in coordination with its Gulf partners, has announced joint sanctions against five entities and 16 individuals allegedly linked to Hezbollah’s financial infrastructure. The coordinated action was taken through the Terrorist Financing Targeting Centre (TFTC), a multilateral body co-chaired by the US and Saudi Arabia that includes all six Gulf Cooperation Council member states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates .

The sanctions target what US officials describe as key components of Hezbollah’s financial operations, with a particular focus on the al-Qard al-Hassan Association (AQAH). According to the Treasury Department, AQAH “masquerades as a non-governmental organisation under the cover of a Ministry of Interior-granted NGO license,” but in practice provides financial services similar to an unlicensed bank, illicitly moving funds through shell accounts and facilitators . The Treasury further alleges that by “hoarding hard currency that is desperately needed by the Lebanese economy, AQAH allows Hezbollah to build its own support base and compromise the stability of the Lebanese state” .

Also targeted is Bayt al-Mal, described by US officials as Hezbollah’s “unofficial treasury, holding and investing its assets and serving as intermediaries between the terrorist group and mainstream banks” . The Treasury stated that Bayt al-Mal operates under “the direct supervision of the Hezbollah Secretary General” and serves as “a bank, creditor, and investment arm for Hezbollah” .

The sanctions mark the third TFTC designation action under the current US administration and the ninth since the centre was established in May 2017 . The other three targeted entities are al-Khobara for Accounting, Auditing, and Studies; Tashilat SARL; and Auditors for Accounting and Auditing . The Treasury stated that the networks designated “threaten regional stability, international security, mutual interests, and global trade,” adding that the coordinated measures underscore “TFTC members’ shared commitment to disrupting Hezbollah’s ability to exploit the international financial system” . All targets announced were previously designated by the United States .