Financial Crime World

Financial Sanctions Enforcement in Lebanon: US Targets Hizballah-Linked Businesses

In an effort to disrupt the global financial network of the terrorist organization Hizballah, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has designated three Hizballah-linked financial facilitators and their travel company based in Lebanon. This move comes as the Lebanese economy faces an unprecedented crisis, with Hizballah’s government presence blocking economic reforms and stifling change.

The Designations

The individuals and entity targeted are:

  • Adel Diab: a Hizballah member and Lebanese businessman who used his business to raise funds for the group and facilitate its activities.
  • Ali Mohamad Daoun: a Hizballah official in charge of the second district, designated for providing financial support to the group.
  • Jihad Salem Alame: another Hizballah member, designated for his role in supporting the organization’s activities.
  • Dar Al Salam for Travel & Tourism: a Lebanon-based travel agency owned by Daoun and founded and partnered by the four individuals.

The Sanctions

The designations impose significant restrictions on the targeted individuals and entity:

  • All property and interests in property of those designated must be blocked and reported to OFAC.
  • Engaging with these entities may entail risk of secondary sanctions under Executive Order (E.O.) 13224, which can prohibit or impose strict conditions on foreign financial institutions conducting transactions with them.

The Impact

This move is part of the US Treasury’s ongoing efforts to target Hizballah’s attempts to exploit the global financial sector and evade sanctions. “With this action, we are disrupting businessmen who raise and launder funds for Hizballah’s destabilizing activities while the Lebanese people face worsening economic and humanitarian crises,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.

Conclusion

The designation of these individuals and entity is a significant step in the US government’s efforts to combat terrorist financing and disrupt Hizballah’s ability to fund its activities. This move demonstrates the commitment of the US Treasury to disrupting the global financial network of terrorist organizations like Hizballah.