Increased US sanctions on Hezballah focus on financial institutions and trade-based money laundering

The US has increased sanctions on Hezbollah, which has been officially designated a terrorist organisation by Washington.

In implementing the sanctions, President Barack Obama’s administration has been specifically called upon to report to the US Congress on financial institutions worldwide that deal with Hezbollah and its use of trade-based money laundering.

Financial institutions

The US House of Representatives in December unanimously voted to pass a Senate-approved bipartisan bill that imposes tough new sanctions on financial institutions that knowingly do business with what Washington believes to be the Iranian regime’s terrorist proxy, Hezbollah.

President Obama subsequently signed into law legislation that increases sanctions on Hezbollah.

Reporting requirements

The Obama administration is required to submit to Congress reports on Hezbollah’s drug trafficking and transnational criminal activities worldwide, including human trafficking.

The administration must also submit a list of countries that support the group or in which Hezbollah or any of its agents or affiliates, conducts significant fundraising, financing, or money laundering activities.

TBML focus

The measure also requires the administration to submit to Congress, “a list of methods that [Hezbollah], or any of its agents or affiliates, utilises to raise or transfer funds, including trade-based money laundering, the use of foreign exchange houses, and free-trade zones.”

Washington has also been ordered to provide an assessment of whether the government of each identified nation is, “taking adequate measures to disrupt the global logistics networks of [Hezbollah] within the territory of the country; and… a description of measures being taken by the United States to encourage that government” to take action.

Categories: Trade Based Financial crimes News

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