November 16, 2018 | Policy Brief

Treasury and State Target Hezbollah’s Role in Iran’s Threat Network

November 16, 2018 | Policy Brief

Treasury and State Target Hezbollah’s Role in Iran’s Threat Network

The U.S. Departments of State and Treasury on Monday used counterterrorism authorities to collectively designate five persons and one entity, all of whom have ties to Lebanese Hezbollah. The move follows the restoration of sanctions against Iran that were waived pursuant to the 2015 nuclear deal, as well as recent statutory penalties against those supporting or financing the terror group. The new designations underscore the centrality of Hezbollah to Iran’s terrorism and regional campaigns.

The Treasury Department sanctioned Shibl al-Zaydi, the secretary general of Kataib Imam Ali, one of Iran’s Shiite militias in Iraq and Syria. While the Treasury press release did not mention this Iraqi group by name, it did emphasize that Zaydi acts as a financial coordinator between the Iran’s Islamic Revolutionary Guard Corps Quds-Force (IRGC-QF) and Shiite militias. In particular, he facilitates investments in Iraq on behalf of IRGC-QF commander Qassem Soleimani.

Zaydi plays a similar role with Hezbollah investments in Iraq. He is a partner in a sanctioned company in Iraq belonging to Adham Tabaja, a Specially Designated Global Terrorist and co-manager of Hezbollah’s Business Affairs Component, which has a considerable operation in Iraq. Treasury also sanctioned Adnan Kawtharani, another partner in Tabaja’s company. Kawtharani and his brother, whom Treasury designated in 2013, are responsible for Hezbollah’s Iraq portfolio.

Hezbollah has long been instrumental to Iranian activities in Iraq. During the U.S. occupation of Iraq, Iran used Hezbollah to train Shiite militias in Iraq, Iran, and Lebanon. Treasury’s recent actions make clear this effort is ongoing, noting that Kataib Imam Ali has also received training in Lebanon, which is now seen as one of the IRGC’s operational headquarters. Today, the Islamic Republic also has a robust proxy network in both Iraq and Syria, as well as in Yemen and Bahrain, to carry out Tehran’s strategic and ideological goals in the Middle East.

In addition to the Iraq-related sanctions, the State Department designated Jawad Nasrallah, the son of Hezbollah Secretary General Hassan Nasrallah. The Hezbollah chief had acknowledged last year that Jawad works in one of the group’s units (as does his other son, Muhammad Ali). Jawad made international headlines in 2016, when Israeli authorities identified him as an online recruiter for a Palestinian terrorist cell in the West Bank town of Tulkarem.

Congress and the administration maintain a somewhat rare bipartisan consensus on punishing Iran and its proxies directly. The overwhelming support in the House and Senate for the Hizballah International Financing Prevention Amendments Act, which the president signed in October, illustrates that both parties unanimously approved more pressure on Hezbollah. This legislation requires the administration to sanction Hezbollah’s fundraising and recruitment networks, as well as the instrumentalities of foreign states moving funds to the group. Entities and individuals in Iraq and Lebanon can be expected to attract increased attention.

Tony Badran is a research fellow at the Foundation for Defense of Democracies (FDD), where Behnam Ben Taleblu is a research fellow focusing on Iran, and Tyler Stapleton is deputy director for congressional relations. Follow Tony on Twitter @AcrossTheBay and Tyler on Twitter @Ty_D_StapletonFollow FDD on Twitter @FDD. FDD is a Washington-based, nonpartisan research institute focusing on national security and foreign policy.

Issues:

Hezbollah Iran Iran Global Threat Network Iran Sanctions Iran-backed Terrorism Lebanon Sanctions and Illicit Finance