The large-scale military operation launched by Israel against Hezbollah in September 2024 significantly weakened the group in Lebanon, resulting in the loss of many of its top and mid-level leaders, including Secretary-General Hassan Nasrallah. This has serious implications for Hezbollah’s external activities, which have been instrumental in financially supporting the organization following Iran’s financial crisis. Iran’s financial aid to Hezbollah, once accounting for two-thirds of its budget before 2018, has drastically declined.
Hezbollah’s international network includes tens of thousands of members from various countries. The group employs both legitimate and illegitimate means to secure financial and military support, enabling it to maintain its resilience and dominance in Lebanon’s political arena. This study examines Hezbollah’s external activities, the impact of Lebanon’s domestic situation on these operations, and the potential for exploitation by Iran or other actors.
Hezbollah’s Global Operations
Hezbollah operates as a global organization with diverse activities, including public social and political efforts in Lebanon and military operations in Lebanon, Syria, Iraq, Yemen, and the Gulf states. In response to economic challenges stemming from U.S. sanctions on Iran and the group’s involvement in the Syrian war, Hezbollah has intensified its financial activities worldwide. These efforts include fundraising, money laundering, and investments in mosques, schools, cultural centers, youth movements, and charities.
One prominent operative in Latin America is Assad Barakat, who opened an electronics wholesale store in Brazil before his arrest in 2002 for tax evasion. In 2004, the U.S. Treasury Department sanctioned him, labeling him as the “right-hand man” of Hezbollah leader Hassan Nasrallah in South America. Barakat managed a network for fundraising through drug smuggling and counterfeit goods.
In 2008, Nimer Zaitar was arrested for attempting to smuggle cocaine to the U.S. In 2013, Hamza Ali Barakat, Assad’s brother, was arrested for running a smuggling and fraud network in the tri-border area between Brazil, Paraguay, and Argentina. In 2018, another family member, Mahmoud Ali Barakat, was arrested for money laundering.
Hezbollah’s connections to organized crime in Latin America involve counterfeiting goods, cigarette smuggling, human trafficking, drug trafficking, and money laundering. These activities generate significant revenues for the group.
Hezbollah in the U.S. and Europe
The U.S. Treasury Department has long reported Hezbollah’s involvement in extensive criminal networks, including money laundering, smuggling, and trafficking. American law criminalizes support for Hezbollah and imposes secondary sanctions on non-U.S. persons providing material support. Between 1997 and 2020, 19 individuals were charged in U.S. courts with providing material support to Hezbollah, alongside dozens of other non-terrorism-related charges.
In 2019, a Hezbollah operative was convicted in New York for surveilling targets for attack. In 2015, Cyprus arrested a Hezbollah member for smuggling explosives. In 2012, Hezbollah bombed a bus in Bulgaria, killing six and injuring over 30.
In Europe, Hezbollah uses a dual strategy of legitimate and illegitimate activities. In 2018, 15 Hezbollah members in Paris were charged with laundering millions of dollars through cocaine sales in Europe. Proceeds were funneled to buy weapons for the Syrian war.
Operation Cedar (2016) revealed that Hezbollah laundered €1 million weekly through a luxury goods network in France, Belgium, Germany, and Italy. Meanwhile, Operation Cassandra, led by the DEA, uncovered drug trafficking and money laundering operations linked to Hezbollah in Europe.
Germany remains a stronghold for Hezbollah, with approximately 1,500 operatives identified in 2022, up from 950 in prior years. Funds raised in Germany, often under the guise of supporting Lebanese orphans, were funneled to Hezbollah-controlled entities like the Martyrs Foundation.
Latin America’s Strategic Importance
According to Emmanuel Ottolenghi, a senior fellow at the Foundation for Defense of Democracies, Hezbollah’s presence in Latin America is enabled by the Lebanese diaspora, which provides cultural and financial support. Through the Global Call initiative, the group invests in social infrastructure such as mosques, schools, and charities. These institutions foster loyalty and ensure a steady flow of resources, allowing Hezbollah to operate with relative impunity.
Hezbollah’s influence in Latin America has grown significantly due to its strong social infrastructure and ability to blend into diaspora communities.
The Challenges of Monitoring Hezbollah
Information about Hezbollah’s operations often emerges in isolated incidents linked to arrests or seizures. There is no comprehensive database of the group’s global activities, and much intelligence remains classified. This secrecy complicates efforts to understand the full scope of Hezbollah’s international network.
Hezbollah’s extensive criminal enterprises, including drug trafficking, counterfeit goods, and smuggling, generate significant illicit revenues. In the Lebanese Canadian Bank case, Hezbollah-linked networks laundered approximately $200 million monthly.
Hezbollah’s Regional Network Activities
In Yemen, Hezbollah has been involved in smuggling disassembled weapons and training Houthi fighters in guerrilla warfare, logistics, and the use of advanced weaponry, including missile technology. The group’s elite Radwan Force has directed attacks against Saudi targets. Hezbollah’s leadership, including the late Secretary-General Hassan Nasrallah, participated in propaganda campaigns to support the Houthi cause and counter Saudi narratives.
In Bahrain, Hezbollah’s activities have been more covert, focusing on supporting Shia opposition groups. According to Bahraini sources, Hezbollah collaborated with Iran to form a Shia militia in Bahrain known as the Al-Ashtar Brigades, which has carried out more than 20 attacks against Bahraini security forces since its establishment in 2013.
In Iraq, Hezbollah’s role expanded significantly during the Arab Spring. In 2014, Hezbollah established a command center in Iraq to oversee and plan operations. The group accelerated arms deliveries and provided extensive training and support to Iraqi Shia militias, including Asa’ib Ahl al-Haq, Kata’ib Hezbollah, and the Badr Organization. Hezbollah operatives also engaged in combat alongside these militias against ISIS.
While external chaos allowed Hezbollah to expand its regional influence, internal chaos in Lebanon has served the same purpose. Over 80% of Lebanese live in poverty due to the country’s financial turmoil and the devaluation of the Lebanese lira. Hezbollah has capitalized on these dire conditions through the Al-Qard Al-Hassan Association, its financial backbone, by providing personal loans in exchange for gold and foreign currencies, making Hezbollah the largest holder of gold reserves in the country. Additionally, Hezbollah has injected foreign currencies and gold into Lebanon through its global financial network, including Venezuelan gold mines. This has given Hezbollah immense purchasing power, enabling it to expand its economic presence by acquiring numerous construction and solar energy projects.
The Fate of Hezbollah’s International Activities
The weakening of Hezbollah and its defeat by Israel in Lebanon do not necessarily signal the end of the group, especially regarding its international operations. Iran has emphasized that the death of Nasrallah and preceding events will not affect Hezbollah’s capabilities or regional stance. Former commander of Iran’s Quds Force, Ahmad Vahidi, stated, “Hezbollah has trained many leaders, and for every leader martyred, another steps up.” This reflects Iran’s intent to leverage Hezbollah’s international network as an avenue to evade Western sanctions, launder money, and conduct covert operations without direct attribution to Iran.
However, Hezbollah is expected to face increased scrutiny of its international activities. This could lead to the closure of some of its operations in several countries, prompting the group to adopt greater secrecy and reduce its public visibility. Hezbollah’s global network, often comprising tightly-knit family clans, provides the group with a level of resilience and operational continuity. Yet, vulnerabilities may arise in less familial settings, particularly given the recent security breaches within Hezbollah and Iran’s Revolutionary Guard Corps (IRGC). These breaches include the assassination of former Hamas political bureau chief Ismail Haniyeh in Tehran and the precise targeting of Hassan Nasrallah during his assassination. These developments make Hezbollah’s continued operations increasingly precarious.
Already, crackdowns on Hezbollah’s activities abroad have begun. On August 15, 2024, the U.S. Treasury Department announced additional sanctions targeting commercial networks linked to Yemen’s Houthi movement and Hezbollah. These sanctions involved companies, individuals, and vessels accused of transporting Iranian goods, including oil and liquefied gas, to Yemen and the UAE on behalf of a network associated with a Houthi financial official. The Treasury stated that revenues from this network help fund the Houthis’ attacks on Red Sea shipping routes and civilian infrastructure.
The Future of Hezbollah’s Regional Role
Hezbollah’s future regional role is fraught with challenges. Much of its constituency has been displaced from southern Lebanon, the Bekaa Valley, and southern Beirut, with these areas experiencing massive destruction. The loss of key first-tier leaders following Nasrallah’s death requires time for replacements to gain comparable experience and expertise. Moreover, Hezbollah’s arsenal has been significantly weakened by Israeli airstrikes.
These recent developments are likely to affect Hezbollah’s role in Syria, Iraq, and other regions, particularly as Nasrallah served as a successor to Qassem Soleimani in leading the so-called “Axis of Resistance” that stretches from Yemen to Iraq, Syria, Lebanon, Hamas, and Iran. Filling this role will be difficult for any successor. Additionally, Israel’s military strikes have diminished Hezbollah’s military strength, reducing its regional stature.
Conclusion:
- Extensive Global Network: Hezbollah has built a robust financial, commercial, and military network across various countries over the years. These activities are characterized by secrecy and diversity, relying heavily on donations from the Lebanese Shia diaspora, who lead numerous businesses in Africa, Australia, Latin America, Europe, and the U.S.
- Increased Scrutiny: Hezbollah’s international activities, often tied to illegal operations such as drug trafficking, arms smuggling, and human trafficking, have long provided significant financial support to the group. However, recent events are likely to lead to greater scrutiny, particularly regarding terrorist operations and explosives, as fears of retaliatory attacks on Israeli and U.S. targets grow. This will push Hezbollah to adopt more covert strategies, increasing pressure on its operations.
- Iran’s Role: Iran is expected to maintain Hezbollah’s international network, likely managing it through the IRGC to leverage its benefits, such as securing funds, evading Western sanctions, and threatening Western interests without direct attribution.
- Regional Challenges: Hezbollah’s regional cells in Syria, Iraq, Yemen, and the Gulf states face tough times ahead. The absence of Hassan Nasrallah as an inspiring leader creates a leadership vacuum that may require IRGC commanders to replace traditional Lebanese leaders. However, Iran faces declining trust in its ability or willingness to protect allies it often places in jeopardy. Hezbollah operatives in Syria and Iraq are expected to remain under attack, particularly given the significant security breaches within Hezbollah and the IRGC.
