A high-ranking U.S. Treasury official said Monday during a visit to Beirut that Washington is pressing Lebanese authorities to curb the flow of funds to Hezbollah ahead of next year’s parliamentary elections and to prosecute individuals tied to a quasi-bank affiliated with the group.
Undersecretary for Terrorism and Financial Intelligence John K. Hurley, who arrived with a delegation from the Treasury Department and the National Security Council, said the U.S. believes the Lebanese terror group is attempting to bring $1 billion into the country by the end of the year. “Exactly how many dollars they have brought in, we don’t know,” he added.
Hurley said Lebanese authorities have made “great progress” in targeting illicit financial flows but urged them to do more. He denied that Washington had set any deadlines, but said, “We were very frank with the president, the prime minister and other senior officials that there’s a window right now, particularly between now and the election.”
Parliamentary elections are scheduled for May 2026, although some Lebanese politicians have called for a delay amid debate over voting procedures for the country’s large diaspora. Hezbollah and its allies performed strongly in municipal elections earlier this year in the group’s traditional strongholds, results the group hopes to translate into parliamentary gains.
Since last year’s war between Israel and Hezbollah, Lebanon has tightened screening procedures at its only international airport and halted direct flights from Iran, Hezbollah’s main backer.
Hurley said funds for Hezbollah continue to arrive as cash and gold carried in suitcases. Before Lebanon, the U.S. delegation visited the United Arab Emirates and Turkey — both considered transit points for money moving from Iran to Lebanon — and urged authorities there to cut off the flow. He added that Hezbollah has also used cryptocurrency to move funds.
Given the scale of the operation, Hurley said, “We’re confident that somewhere there are banks that are either knowingly or unknowingly facilitating getting money into the country.” He also identified exchange houses as “a major part of the problem.” The Treasury Department recently announced new sanctions targeting financial operatives who channel funds to Hezbollah through currency exchange shops.
Washington has also urged Lebanon to act against al-Qard al-Hasan, a Hezbollah-linked organization officially registered as a nonprofit charity but functioning as a quasi-bank outside the Lebanese financial system. In addition to its military wing, Hezbollah operates schools, hospitals, discount grocery stores and al-Qard al-Hasan, which offers interest-free loans and savings accounts and served as a financial lifeline for many Lebanese after the country’s 2019 financial collapse. The U.S. says Hezbollah uses the institution to evade sanctions.
“There should be prosecutions of people who are violating Lebanese law, who are violating sanctions, using that entity to fund Hezbollah,” Hurley said. “And so we are encouraging Lebanese officials to take action.”