Hezbollah money laundering risks sanctions on Lebanon

Media reports show pro-Hezbollah charities using online platforms to solicit donations via digital wallets to circumvent sanctions. In Lebanon’s cash economy, that is a dangerous game to play.

Lina Jaradat

Hezbollah money laundering risks sanctions on Lebanon

Thuraya Shahin

last update on 17 Nov 2025

American eyes are closing in on Lebanon’s economic and monetary systems, amid suggestions that Hezbollah is laundering money through the country. At its core, Washington is concerned that the group is transferring funds in ways that let it bypass restrictions and international monitoring mechanisms.

This was at the top of the agenda when a high-level US delegation visited Beirut earlier this month. National Security Council counter-terrorism chief Sebastian Gorka, Under-Secretary of the Treasury John Hurley, and counterterrorism expert Rudolph Atallah were among the senior US officials to fly in. Atallah is a former US Air Force colonel of Lebanese descent.

Speaking to Reuters from Istanbul beforehand, Hurley described a “window of opportunity” for the US to sever Iran’s financial lifeline to Hezbollah and compel the group to disarm. He disclosed that Iran had managed to transfer “nearly $1bn” to Hezbollah in 2025, despite a raft of sanctions that have crippled its economy.

AFP — Lebanese President Joseph Aoun, in a meeting with the American delegation at the Presidential Palace in Baabda, on 9 November 2025.

No more games

Hurley’s regional tour of the UAE, Türkiye, Lebanon, and Israel aims to galvanise efforts to dismantle Iranian influence, particularly through Hezbollah and its affiliated networks. While Washington continues to monitor terrorist financing and the movement of funds, Hurley’s mission is to coordinate regional efforts to sever the funds flowing to Tehran and its proxies. In this context, Hezbollah wants to sustain Lebanon’s “cash economy,” which operates outside formal banking oversight.

Diplomatic sources told Al Majalla that the American delegation stressed the importance of disarming Hezbollah in parallel with financial reforms. There was dissatisfaction with Lebanon’s handling of the Hezbollah-linked non-profit financial institution Al-Qard Al-Hassan, which provides interest-free loans. The sources warned that continued inaction could mean that Lebanon soon faces severe consequences.

Allegations that Hezbollah has used money transfer companies to channel funds to its charities and support base raise serious questions. It also invites intensified scrutiny of these firms, with the prospect of sanctions if evidence emerges. Those facilitating these transfers are not currently believed to be under international sanctions or to have documented links to financial crimes.

Although there is parallel pressure for the group’s weapons to be placed under state authority, Washington’s targeting of Hezbollah is now honing in on its financial infrastructure, which sustains its capabilities and support network. Yet from bypassing sanctions on Al-Qard Al-Hassan to using money transfer companies in concealed ways, Hezbollah has shown its ability to adapt.

AFP — A building belonging to the "Al-Qard Al-Hasan" Foundation was damaged after Israeli airstrikes on Hezbollah facilities in Beirut's southern suburbs on 21 October 2024.

Digital money transfers

On 2 November, the Financial Times reported that Hezbollah had instructed its affiliated charities to solicit donations through digital money transfer platforms to circumvent US sanctions. This led The Wall Street Journal and others to urge tighter financial oversight, both within Lebanon and at its borders. According to the Financial Times report, charities sanctioned for links to Hezbollah have begun using Lebanese digital payment platforms to solicit donations.

Posters and websites affiliated with organisations such as the Martyrs Foundation and Al-Imdad Association have urged supporters to transfer funds via Whish Money, OMT, or through digital wallets registered under individual names. By donating via personal wallets rather than organisational accounts, contributors can evade automated compliance systems designed to flag suspicious financial activity.

The newspaper cited a case in which a donation from the Democratic Republic of Congo was reportedly channelled through Ria—a global partner of Whish—before being deposited into a digital wallet in Lebanon registered to an individual linked to a blacklisted charity. In response, representatives from Whish and OMT told the Financial Times that they maintain rigorous anti-money laundering protocols and denied any knowledge of processing transactions for sanctioned entities.

Lebanon’s central bank, Banque du Liban, acknowledged growing international concerns and said it had instructed all licensed money transfer firms to reinforce their compliance and monitoring systems. It added that financial regulators had not received evidence implicating OMT or Whish in any wrongdoing. Still, a Lebanese official confirmed that the rapid expansion of digital wallets was a new regulatory challenge, particularly amid Lebanon’s ongoing financial crisis.

The implications are serious. If these firms suspend operations before Lebanon's banking sector is restructured, the economy could be hit hard

No wiggle room

Lebanon is believed to have been added to a European Union blacklist two months ago and now faces the risk of being placed on the US Treasury's grey list. Such listings restrict the flow of funds into and out of Lebanon, adding pressure on a teetering economy. According to Banque du Liban sources, one money transfer company operates around 1,800 branches nationwide.

The central bank is believed to be adopting additional oversight measures to ensure compliance with anti-money laundering standards, while OMT confirmed its full adherence to all regulations and did not consider itself implicated by the FT report.

Tony Nissi, head of Lebanon's UN Security Council Implementation Committee, told Al Majalla about ongoing concern about Hezbollah's possible circumvention of international financial restrictions, noting that both OMT and Whish Money are licensed by the central bank to conduct transfers in both US dollars and Lebanese pounds. Similar to banks, they operate within Lebanon's predominantly cash-based economy—one Hezbollah often relies on to avoid banking procedures and oversight.

"These companies may be used, intentionally or not, as substitutes for traditional banks, taking advantage of the opacity inherent in cash transactions," said Nissi. He added that such firms were already being monitoring and—due to their structure—remain vulnerable to misuse by those seeking to bypass sanctions using so-called 'clean' names. The implications are serious. If these firms suspend operations before Lebanon's banking sector is restructured, the economy could be hit hard.

AFP — A destroyed Lebanese bank after it was set on fire by protesters, Tripoli, June 12, 2020.

Facing catastrophe

Lebanese banks are already on global grey lists and the EU's blacklist. Should the US follow suit, Lebanon could lose access to the SWIFT banking transfer system, hindering its ability to import essential goods and conduct international transactions. "Would these companies even be licensed to transport cash by air?" Nissi asked rhetorically. "In any case, nothing will simply slip by. The situation is being closely monitored... It is not straightforward."

Nissi warned that Lebanon is approaching a humanitarian, economic and service-sector disaster. Its survival depends on securing credit lines from abroad for importing fuel, food, medicine, and other vital supplies. "If these channels are cut, the use of banking cards—whether for deposits or withdrawals—would stop entirely. Lebanon would enter a severe crisis, and its citizens would find themselves effectively trapped, without access to funds or basics."

Nissi added that financial firms operating in Lebanon are likely to face heightened international scrutiny, particularly given allegations that they may be used for illicit purposes, perhaps unwittingly. He further noted that John Hurley's visit to Beirut carries serious implications. "Given Hurley's seniority, his mission is strongly cautionary," Nissi explained. "Visits of this kind often precede the imposition of sanctions."

Nicolas Maalouf, branch manager at Crédit Libanais, expressed concern over the possibility of sanctions targeting money transfer companies, if the allegations are proven. "Banks operate under rigorous protocols, verifying every name against international sanction lists and collecting extensive personal data from clients, including nationality, family status, income, and expected transaction volumes."

He outlined the Know Your Customer (KYC) procedures required when opening an account, which clients must periodically update. "If the annual transfer volume exceeds what a client initially declared, it triggers alerts under anti-money laundering regulations," Maalouf said, adding that banks have advanced monitoring systems that many money transfer firms do not.

Diplomatic sources told Al Majalla that the US Embassy in Beirut maintains both a legal team and a Treasury unit, which have been sharing information with Hurley

Greater intensity

Mohieddine El-Hashemi, a professor of international political and economic relations in Paris, told Al Majalla that the issue has long been under discussion, but is now being pursued with greater intensity. "This escalation is raising the bar for oversight, auditing and enforcement, particularly in tracking financial flows linked to Hezbollah and its so-called Axis of Resistance," he said.

On 6 November, the US Treasury said it had sanctioned three people accused of laundering funds used to finance Hezbollah's operations. It accused them of facilitating the transfer of tens of millions of dollars from Iran to Hezbollah in 2025 via currency exchange offices. But analysts noted that the targeting was of individuals, not the companies handling the transactions.

Diplomatic sources told Al Majalla that the US Embassy in Beirut maintains both a legal team and a Treasury unit, which have been sharing information with Hurley. These teams are ready to meet Lebanese officials and regularly pass on assessments of Lebanon's financial institutions to Washington. Should any suspicious accounts be identified, they have the authority to request their immediate closure, whether in banks or other financial entities.

In October, at the Manama Dialogue summit in Bahrain, US Special Envoy to Syria Tom Barrack called Lebanon a "failed state" and expressed frustration at its "paralysed government". Noting how Hezbollah provided for its supporters in a way that the Lebanese state did not provide for Lebanese citizens, Barrack said pointedly: "Hezbollah is the state… It is really up to the Lebanese. America is not going to get deeper involved in the situation with a foreign terrorist organisation and a failed state dictating the pace and asking for more resources, more money, and more help."

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