BEIRUT, Reuters, June 2, 2017— Moves in Washington to widen financial sanctions on the powerful Shi’ite Hezbollah political group have triggered alarm in Beirut
Not yet proposed as law, draft amendments to an existing law threatening sanctions against anyone who finances the heavily-armed Iranian-backed Hezbollah in a significant way prompted lobbying trips to Washington in May by worried Lebanese bankers and politicians.
But with U.S. President Donald Trump keen to curb the influence of Iran and its Middle Eastern allies in the region, the risks have not gone away for Lebanon, where Hezbollah wields huge influence.
Hezbollah, led by Sayyed Hassan Nasrallah, is classified by Washington as a terrorist organization.
Sources familiar with the matter told Reuters there remains a strong desire in Washington to press harder against Iran and Hezbollah, and there are likely other measures being drafted.
A U.S. congressional aide told Reuters that Republican representative and head of the U.S. Foreign Affairs Committee Ed Royce, who authored the original 2015 law, is considering additional legislation.
“If they (the banks) aren’t doing business with Hezbollah, they don’t have anything to worry about,” the aide said.
The U.S. Treasury declined to comment on the draft saying it had no formal position.
The United States says Hezbollah is financed not just by Iran but also by networks of Lebanese and international individuals and businesses. The 2015 law, known as HIFPA, aimed to cut off these funding routes.
TRIGGERED TENSIONS
Its implementation triggered domestic tensions in Lebanon. Worried about losing their relationship with correspondent banks, Lebanese banks began closing some customers’ accounts, including Shi’ites who were not Hezbollah members.
The law led to an unprecedented dispute between Hezbollah and the central bank which asked all banks to comply with the legislation. Last June, a bomb was set off at the headquarters of leading Lebanese bank Blom Bank, causing no casualties.
Since taking office in January, Trump has imposed new sanctions on individuals and businesses involved with Iran’s ballistic missile program and with Hezbollah.
