Between sanctions and strikes: US, Israel tighten pressure on Hezbollah’s finances in Lebanon

Report by Lara El Hachem, English adaptation by Karine Keuchkerian

The United States, along with Israel, is seeking to contain Hezbollah and restrict its capabilities.

Financially, U.S. sanctions target individuals and entities designated by the Treasury Department as financiers of the group. 

Treasury delegations have called on Lebanon to curb sources of terrorism financing and to disarm Hezbollah. Washington has also tied any aid or loans to Lebanon to reforms in the financial and banking sectors, particularly efforts to combat money laundering and the cash-based economy.

Israel, for its part, is pursuing the same objective through military means. It has destroyed Al-Qard Al-Hasan Association institutions, set fire to Al-Amana fuel stations, and targeted what it says are financial distribution sites. 

Israeli army spokesperson Avichay Adraee said strikes were carried out on two exchange companies, BOA Chance, owned by Hussein Ibrahim, and Trade Point International, alleging they are involved in financing Hezbollah’s activities.

LBCI reviewed the registry of the licensed exchange companies, and sources in the sector said the two firms are not listed by Lebanon’s Central Bank, indicating they are not licensed to operate as exchange companies. 

Further review of company records found no trace of BOA Chance, while Trade Point International has been on the U.S. sanctions list since 2016 on accusations of laundering money for Hezbollah.

Whether these companies serve as fronts for funding Hezbollah remains an open question. However, this does not negate the fact that they are civilian entities protected under international humanitarian law, even if they are linked to one of the parties to the conflict, a point emphasized by the United Nations during the 66-day war.