WASHINGTON, D.C. – The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned three individuals and four companies involved in a Lebanon-based network that generates millions of dollars for Hizballah. The sanctions target key figures behind covert commercial projects in Lebanon, many of which are funded and facilitated by Iran. Additionally, OFAC has sanctioned individuals linked to the illegal production and trafficking of Captagon, a highly addictive drug benefiting the Syrian regime and Hizballah.
The Treasury’s action, taken under counterterrorism authorities, aims to disrupt Hizballah’s ability to fund its operations through these illicit enterprises. Captagon trafficking has grown into a billion-dollar global enterprise, operated by high-ranking members of the Syrian regime, including those close to Bashar al-Assad.
Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, emphasized the urgency of the situation: “Today’s action underscores Hizballah’s destabilizing influence within Lebanon and on the wider region, as the group and its supporters continue to finance their operations through commercial trade and illicit drug trafficking.”
OFAC has consistently targeted Hizballah’s finance operations, including oil smuggling and business investments in Lebanon, which have funneled critical revenue to the group. Despite sanctions, Hizballah has used tactics like transferring ownership of companies to relatives or associates to evade detection and continue funding their activities.
The sanctions also target Captagon traffickers closely tied to the Syrian regime. Khaldoun Hamieh, one of the individuals designated, controls drug labs in Syria and has facilitated smuggling operations across the region. The U.S. government also highlighted the involvement of other Syrian nationals using front companies to traffic Captagon into Europe.
As a result of these actions, all property and interests in property of the designated persons within U.S. jurisdiction are now blocked. The Treasury warns that individuals and companies worldwide could face secondary sanctions if they engage in transactions with those designated.