The U.S. Departments of State (DOS) and Treasury announced recently they have taken actions against an international sanctions-evasion network accused of using a complex web of companies and individuals to finance Hizballah’s terrorist activities.
Treasury is designating the network for facilitating "the payment, shipment, and delivery of cash, art, and luxury goods for the benefit of Hizballah financier and Specially Designated Global Terrorist Nazem Said Ahmad," the DOS announced April 18, which also reported in the announcement that it is
"re-advertising its reward offer of up to $10 million for information on Hizballah’s financial mechanisms, including Ahmad."
DOS states in the news release that the network has laundered money and evaded sanctions by using the global financial system. The actions against the illicit network is part of a wider effort by the U.S. to disrupt Hizballah's terrorist activities and cut off its funding. The U.S. designated Hizballah a terrorist organization and has been imposing sanctions on the group since the 1990s, according to the State Department’s Country Reports on Terrorism 2019.
Treasury levied sanctions on eight individuals and seven entities alleged to be involved in a Russian-linked cryptocurrency scheme, according to its April 18 news release. The scheme is said to have been used to facilitate illegal activities, including ransomware attacks, theft and money laundering. The individuals and entities are accused of providing support to the “CryptoCurrency” exchange, which is allegedly linked to the Russian Federal Security Service. The sanctions freeze any assets that the designated individuals and entities have under U.S. jurisdiction and prohibit U.S. citizens from conducting any business with them.
The U.K. government has also imposed sanctions on Ahmad and instituted a "full asset freeze," which marks the first use of domestic counter-terrorism powers in the U.K. to freeze the assets of an individual under suspicion of being involved in an international terrorism-financing network. Ahmad has been accused of using his businesses to generate funds for Hizballah, which has been designated a terrorist organization by the UK government.
“In coordinated action with the United Kingdom, we are designating a global sanctions evasion network providing support to a U.S.-designated person and Hizballah financier who takes advantage of the permissive nature of the global art, diamond, and precious gems markets,” Secretary of State Antony Blinken said in an April 18 tweet.
