The logo of the U.S. Department of State. (Credit: AFP)
The U.S. State Department's "Rewards for Justice" (RFJ) program announced on Monday it was offering a reward of up to $10 million for information leading to the disruption of Hezbollah's financial networks.
RFJ stated that Hezbollah "has been active in the Western Hemisphere, particularly in the Tri-Border Area (TBA) between Argentina, Brazil, and Paraguay, since the 1980s."
"The group is responsible for carrying out terrorist attacks in the Western Hemisphere, including the July 18, 1994 bombing of the Argentine Jewish Mutual Aid Society," the statement said. "Hezbollah was also implicated, along with Iran, in the 1992 attacks on the Israeli embassy in Buenos Aires, Argentina as well as the 1994 bombing of Alas Chiricanas flight 00901 in Colón, Panama."
Hezbollah is designated as a terrorist organization by the United States, which is an ally of Israel. Several Hezbollah members are under U.S. sanctions, including two senior officials and two financial facilitators targeted in the most recent sanctions announced on May 15 for their roles in coordinating transfers to the Iran-backed party. On March 28, five individuals and three entities were designated as involved in a Lebanon-based sanctions evasion network supporting Hezbollah's financial operations, according to a statement by the U.S. Treasury.
Hezbollah was significantly weakened militarily following its recent conflict with Israel in 2023-2024, along with its financial network.
Money Laundering, Trafficking, and Smuggling
In the Tri-Border Area of Latin America, the U.S. State Department accuses "members, supporters, and facilitators are involved in large-scale revenue-generating schemes, including trade-based money laundering, narcotics trafficking, charcoal and oil smuggling, illicit diamond trade, bulk cash smuggling, smuggling of cigarettes and luxury goods, document forgery, and the counterfeiting of U.S. dollars."
"They also generate revenue from commercial activities across Latin America, including construction, import/export trade, and real estate sales," the statement added.
According to the State Department, Hezbollah financiers and facilitators in the TBA operate "multinational networks that generate millions of dollars in revenue for Hezbollah in the Western Hemisphere." It claimed that many of these individuals also organized fundraising activities and transferred proceeds from Latin America to Hezbollah in the Middle East.
The RFJ's reward offer aims to obtain information to "disrupt" Hezbollah's financial mechanisms. This may include significant revenue sources for Hezbollah, financial contributions from donors and facilitators linked to the party, major transactions of financial institutions and exchange houses benefiting Hezbollah, businesses or investments owned or controlled by the party or its financiers, international activities of shell companies, "criminal" plans involving Hezbollah members and supporters, illicit financial projects, evidence of deals between official financial institutions and Hezbollah, fund and material transfers by the pro-Iranian party to its agents and partners, or traces of facilitated transactions by financial institutions or exchange houses.
The statement noted that on Oct. 8, 1997, the State Department designated Hezbollah as a foreign terrorist organization under section 219 of the Immigration and Nationality Act, and then as a global terrorist organization on Oct. 31, 2001. Consequently, following the U.S. State Department's statement, "all of Hezbollah’s property, and interests in property, subject to U.S. jurisdiction are blocked, and U.S. persons are generally prohibited from engaging in any transactions with Hezbollah. It is a crime to knowingly provide, or to attempt or conspire to provide, material support or resources to Hezbollah."
