The Financial Crimes Enforcement Network today issued an alert for financial institutions to help identify and report suspicious activity supporting the Lebanese terrorist group Hezbollah (also spelled Hizballah). The alert builds upon an advisory issued in May concerning Iran-backed organizations.
The alert notes that Hezbollah’s financing is global in scale, with large portions of its revenue coming from smuggling oil, electronics and other goods. The organization and its supporters operate a global network of front companies and legitimate businesses in real estate, import/export, construction, diamonds and precious stones, and high-value art to move and launder funds, according to FinCEN.
Red flags for financial institutions to look out for include customer transactions with entities and individuals that the U.S. Office of Foreign Assets Control has designated due to their connection with Hezbollah, customers utilizing the services of foreign financial institutions designated being of “primary money laundering concern,” and customer transactions to money services businesses and financial institutions that operate in jurisdictions at high risk for Hezbollah terrorist financing.
