The Secrets of Funding: Israel Warns of Smuggling Operations for Hezbollah

1st February 2025

4 minutes read

The Secrets of Funding: Israel Warns of Smuggling Operations for Hezbollah

Israel has filed complaints with the committee overseeing the ceasefire in Lebanon, accusing Iranian diplomats of transferring millions of dollars to Hezbollah.

According to these complaints, Iranian emissaries travel from Tehran to Beirut’s international airport, carrying suitcases filled with US dollars.

Israel also claimed that Turkish citizens are involved in transferring funds from Istanbul to Beirut by air, as reported by The Wall Street Journal.

Role of the Ceasefire Supervisory Committee

The committee, which includes representatives from Israel, Lebanon, the United States, France, and the United Nations, does not have the authority to impose sanctions, but it has passed the complaints on to the Lebanese government.

Some of the concerned governments confirmed they were aware of Iran’s use of the airport for smuggling operations, or consider the allegations credible.

According to the ceasefire agreement, Lebanon is required to secure its ports and entry points to prevent the flow of weapons and related materials to armed groups like Hezbollah, which is classified as a terrorist organization by the United States. However, the agreement does not specifically address cash transfers.

Implications of Hezbollah’s Funding

Iranian money transfers to Hezbollah could escalate tensions between Israel and Tehran’s allies.

During two months of intense fighting last fall, Israel killed senior Hezbollah leaders, inflicted heavy losses on its ranks, and destroyed part of its missile arsenal.

Israel insists on preventing Hezbollah from rebuilding its capabilities, threatening to bomb Beirut’s airport if it is used to smuggle support to the group.

Despite the cessation of hostilities for the past two months, Israel has carried out hundreds of strikes on Hezbollah targets, claiming it violated the agreement, including last Tuesday’s attacks on vehicles said to be transporting military equipment.

Attempts to Monitor Smuggling

On January 2, Lebanese authorities searched an Iranian Mahan Air passenger flight after a report claimed it was carrying money for Hezbollah.

An Iranian diplomat on board the flight refused to comply with procedures, entering Lebanon with two suitcases that Iran stated contained documents and money for embassy operations, according to the Lebanese Ministry of Foreign Affairs.

Hezbollah needs funding to compensate for its losses in the recent conflict, where many of its members were killed or wounded, and its strongholds in southern Lebanon and southern Beirut suburbs were damaged, according to Lebanese security sources.

The group also uses the funds to pay salaries to its members, support the families of the victims, compensate the affected, and finance its ongoing social programs.

Israel’s Efforts to Target Hezbollah’s Funding Sources

Throughout the past year, Israel has sought to target Hezbollah’s funding sources to weaken it and slow its recovery, assassinating key figures responsible for financing the group from Iran, and conducting airstrikes during the recent conflict on sites storing money and gold, including branches of Al-Qard Al-Hassan, a bank sanctioned by the US for its role in financing Hezbollah.

Matthew Levitt, a former official at the US Treasury Department, stated that Hezbollah is under financial pressure, having lost large amounts of money and now facing enormous expenses.

Despite Iran’s economic crisis due to sanctions, it will not abandon support for Hezbollah, which it sees as a strategic tool against Israel.

Some reports suggest Hezbollah is struggling to cover its financial commitments. A Lebanese charity official mentioned that Hezbollah experts visited the affected areas but underestimated the cost of reconstruction, leading to widespread dissatisfaction among the population.

However, a source close to Hezbollah denied a liquidity crisis, confirming that compensation is paid to damaged homes, ranging from $12,000 to $14,000 per year for rent, with additional payments for furniture.

Future Challenges

Since the ceasefire in November, Al-Qard Al-Hassan reopened 28 branches, and Hezbollah issued checks worth $500 million, signaling that money continues to flow.

However, the extensive damage to Lebanon, along with increased monitoring of support through Syria and Beirut’s airport, will affect Hezbollah’s ability to fully finance reconstruction.

Until recently, Syria was the main route for smuggling money and weapons to Hezbollah, but the fall of the Assad regime in late 2023 has increased the importance of Beirut’s airport, according to informed sources.

Despite Lebanese assurances that the military strictly controls the airport, former American officials have warned that Hezbollah may use its influence to avoid strict inspections, which raises concerns about the ongoing flow of funds to the militant group.