The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has enforced sanctions on five individuals and three companies linked to a Lebanon-based sanctions evasion network. This network is connected to the Hizballah finance team, designed to funnel profits through commercial ventures and oil smuggling operations, often in coordination with Iran’s Islamic Revolutionary Guard Corps – Qods Force (IRGC-QF). Treasury's action aims to disrupt these funding mechanisms that support Hizballah's activities.
"Today's action underscores Treasury's determination to expose and disrupt the schemes that fund Hizballah's terrorist violence against the Lebanese people and their neighbors," stated Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence. He added these networks bolster Iran and its proxy Hizballah while undermining efforts to establish peace in Lebanon.
This move aligns with the counterterrorism authority outlined in Executive Order (E.O.) 13224. The U.S. government has maintained a policy of maximum pressure on Iran and Hizballah since the designation of Hizballah as a Foreign Terrorist Organization and a Specially Designated Global Terrorist.
The Rewards for Justice program, administered by the U.S. Department of State, offers up to $10 million for information that can help disrupt Hizballah's financial operations.
The individuals and companies targeted by these sanctions include those involved with oil sales and revenue generation for Hizballah's operations. Initially, these activities were managed by senior Hizballah finance official Muhammad Qasir before his death in 2024. His son-in-law, Muhammad Qasim al-Bazzal, has continued to manage these operations by hiding company ownership to mask the ties to Hizballah.
The designations reveal the extensive use of front companies and legitimate businesses to funnel money to Hizballah. Rashid Qasim al-Bazzal, brother of Muhammad Qasim al-Bazzal, manages several businesses as part of this network. Other individuals designated include Mahasin Mahmud Murtada and Fatimah ‘Abdallah Ayyub, who hold interests in Alumix and other commercial ventures.
Designation as per E.O. 13224 entails that all property and financial interests of these individuals and companies in the U.S. are blocked. U.S. persons and entities must comply with OFAC's sanctions, with violations potentially leading to penalties. Secondary sanctions may apply to foreign financial institutions transacting with these designated persons.
Sanctions, according to OFAC, are not solely punitive but seek positive changes in behavior. More detailed information on the designation process is available through OFAC's resources.
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