US Treasury urges Lebanon: Stop funding Hamas

This week in Beirut, a senior official from the U.S. Treasury emphasized the importance of preventing funds from being channeled to Hamas through Lebanon, according to officials. Jesse Baker, serving as the deputy assistant secretary of the Treasury for Asia and the Middle East within the Office of Terrorist Financing and Financial Crimes, engaged in discussions with Lebanese politicians and financial sector officials. These meetings, which occurred on Thursday and Friday, are particularly significant against the backdrop of stalled ceasefire negotiations between Israel and Hamas in Gaza. With the Muslim holy month of Ramadan approaching, there’s concern over potential regional flare-ups, including in Lebanon, where Hezbollah, an ally of Hamas and backed by Iran, has been involved in skirmishes with Israeli forces for over five months.

A Treasury official, speaking anonymously due to the delicate nature of the discussions, conveyed that Baker had raised “specific concerns” regarding the transfer of Hamas funds through Lebanon and the financial transactions of Hezbollah, including inflows from Iran and subsequent outflows to other regions. Baker stressed the need for Lebanon to take “proactive measures” to curb these financial flows, which are crucial for these groups to finance their operatives and military activities.

Highlighting the importance of adhering to international standards against money laundering and terrorism financing, the Treasury official pointed out that such compliance is essential for Lebanon to attract investments from the U.S. and globally, which is vital for recovering from its ongoing economic turmoil.

Baker also highlighted the issue of illicit financial services thriving amid Lebanon’s economic collapse, urging a crackdown on unauthorized money exchanges and unregistered money transfer businesses. These entities, along with the country’s substantial cash economy, facilitate financial activities for individuals and organizations, including Hamas and Hezbollah, both of which the U.S. designates as terrorist organizations, bypassing sanctions.

Walid Kilani, a Hamas spokesperson in Lebanon, claimed to have no knowledge regarding this issue. Meanwhile, Halim Berti, a spokesperson for Lebanon’s central bank, acknowledged the meetings with Baker as “very positive,” stating the central bank’s commitment to regulating licensed financial entities. However, he noted that unlicensed operations fall outside the bank’s jurisdiction and should be addressed by law enforcement.