UPDATE - US sanctions Hezbollah operatives for 'exploiting' Lebanon's cash economy

Treasury Department targets those facilitating tens of millions of dollars in transfers from Iran through money exchange companies

​​​​​​​ADDS STATE DEPARTMENT'S STATEMENT

​​​​​​​By Yasin Gungor

ISTANBUL (AA) - The US Treasury Department sanctioned individuals on Thursday who allegedly facilitated the transfer of tens of millions of dollars from Iran to Hezbollah by "exploiting" Lebanon's cash-based financial sector through money exchange companies.

The Office of Foreign Assets Control imposed the sanctions to "support the disarmament" of the Lebanese resistance group, according to a statement.

Since January, Iran's Revolutionary Guards Corps' Quds Force has transferred more than $1 billion to Hezbollah, mostly through money exchange companies, it said.

The Treasury Department accused Hezbollah of "exploiting" money exchange companies and the cash economy to launder illicit funds, arguing the group threatens the integrity of Lebanon's financial system by blending terror financing with legitimate commerce.

The action targeted Hezbollah's financial operators who oversee the movement of funds from Iran, according to the statement.

"Lebanon has an opportunity to be free, prosperous, and secure—but that can only happen if Hizballah is fully disarmed and cut off from Iran's funding and control," said Under Secretary of the Treasury for Terrorism and Financial Intelligence John Hurley.

The US State Department said the action was taken as part of Washington's "maximum pressure against Iran" policy. "The United States is committed to supporting Lebanon by exposing and disrupting Iran’s covert financing of Hizballah," the agency said in a statement that accused Tehran of supporting Hezbollah in a way that undermines Beirut's sovereignty.

It said the US will continue to use every mechanism it has against the group.

"Iran and Hizballah cannot be allowed to keep Lebanon captive any longer," it added, using an alternative spelling for the group.

All property and interests of sanctioned individuals in the US or controlled by US persons are now blocked. Entities owned 50% or more by blocked persons are also sanctioned.


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