Iran has reportedly transferred hundreds of millions of dollars to Hezbollah over the past year via currency exchange offices and private companies in Dubai, raising concerns in the United States, according to a Wall Street Journal article published on Thursday.
The U.S. media outlet also reports that traditional smuggling routes through Syria have been disrupted, and Lebanese authorities have tightened airport controls, pushing Iran and Hezbollah to increasingly rely on Dubai’s financial network. Funds from Iranian oil sales are moved through exchange offices, private companies, and brokers using the Hawala system, an informal money transfer method based on trust, before reaching Hezbollah in Lebanon.
In early November, the U.S. Treasury Department stated that Iran’s Quds Force had transferred more than $1 billion to Hezbollah since January, mostly through money exchange companies.
The United States has urged Lebanon to strengthen measures against Hezbollah’s financial activities and tighten border controls to prevent smuggling. Despite these efforts, Iran has reportedly adapted by sending more travelers carrying smaller amounts of cash or jewelry, which can evade detection, according to Arab officials interviewed by the Wall Street Journal.
Hezbollah is also said to maintain global funding networks reaching as far as West Africa and South America, involving illicit trade in drugs and diamonds as well as money laundering services.
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