US Treasury official speaks out against Hezbollah, corruption at Union of Arab Banks Conference

BEIRUT— “Hezbollah still funnels tens of millions of dollars to its agents – not just by using cash couriers, but via bank transactions and currency exchange operations,” said Assistant Secretary for Terrorist Financing and Financial Crimes at the US Department of the Treasury Elizabeth Rosenberg in front of the Union of Arab Banks Conference on Thursday.

Here’s what we know:

    • Rosenberg gave remarks on countering terrorist financing before the UAB, adding that corruption is another threat “plaguing our financial system.” 

    • Explaining what led to the crisis in Lebanon, Rosenberg said past Lebanese governments made economic decisions based on “patronage networks and back door deals between political parties, including Hezbollah,” instead of reforms.

    • “Since Lebanon defaulted on its bond payments in 2020, the country’s banking system has effectively become a vault that only a select few can access,” she continued.

    • Under the Biden administration’s anti-corruption strategy, the Treasury will soon require U.S. and foreign companies to report true beneficial owners and update that information, she said. “We are also committed to working with you and your governments to uncover and disrupt the transnational financial flows that launder the proceeds of corruption.”

Rosenberg went on to ask UAB to continue implementing “strong compliance measures when it comes to Iranian, Syrian or other sanctions evasion.”