Lebanon

1967-02-17

Jarjo, Nabatiyeh, Lebanon

Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) is designating several individuals and associated entities for facilitating financial activities for Hizballah. At the center of this network is Lebanese money exchanger and so-called financial expert Hassan Moukalled, who plays a key role in enabling Hizballah to continue to exploit and exacerbate Lebanon’s economic crisis. Treasury is also designating CTEX Exchange, a money service business owned by Hassan Moukalled, in addition to Hassan Moukalled’s sons, Rayyan Moukalled and Rani Moukalled, who facilitate Hassan Moukalled and his company’s financial activities in support of Hizballah. Hassan Moukalled, a Lebanon-based economist, has worked in close coordination with senior Hizballah financial officials to help Hizballah establish a presence in Lebanon’s financial system. He serves as a financial advisor to Hizballah and carries out business deals on behalf of the group throughout the region. Hassan Moukalled works in close coordination with sanctioned senior Hizballah financial official Muhammad Qasir and represents Hizballah in negotiations with potential investors, partners, and even foreign government officials. Hassan Moukalled has coordinated a wide range of issues with Muhammad Qasir, including business deals involving Russia, as well as efforts to assist Hizballah in obtaining weaponry for Hizballah’s use. Hassan Moukalled publicly acknowledged his role in 2016 as an intermediary for negotiations between the Central Bank and Hizballah. Hassan Moukalled is being designated for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Hizballah. As of mid-2021, Hassan Moukalled established on behalf of Hizballah CTEX as a financial front company in Beirut. Senior Hizballah financial official Muhammad Qasir and his deputy Muhammad Qasim al-Bazzal were reportedly behind the establishment of CTEX. In mid-2021, Hassan Moukalled received a license from Lebanon’s central bank for CTEX to transfer money within Lebanon and abroad, and within a year the company had obtained significant market share within Lebanon’s currency transfer sector and was reportedly collecting millions of U.S. dollars for the Central Bank of Lebanon. At the same time, CTEX was also providing U.S. dollars to Hizballah institutions and recruiting money changers loyal to Hizballah. Hassan Moukalled advocates for CTEX directly to the central bank governor and receives commissions in the hundreds of thousands of dollars daily. As Lebanon and its economy faced a dire and ongoing financial crisis in mid-2022, Hassan Moukalled was working with Hizballah officials to capitalize on investors’ and expatriates’ efforts to make money in the Lebanese financial sector and transfer cash out of Lebanon. Hassan Moukalled was also working to expand CTEX outside of Lebanon. CTEX Exchange (CTEX) is being designated for being owned, controlled, or directed by, directly or indirectly, Hassan Moukalled, a person whose property and interests in property are blocked pursuant to E.O. 13224, as amended.

https://home.treasury.gov/news/press-releases/jy1211

2023-01-24

US

Global Terrorism Sanctions Regulations, 31 C.F.R. part 594

OFAC-horizontal

Terrorism

Blocking Property

• https://ofac.treasury.gov/faqs/topic/2396

On June 6, 2003, OFAC issued the Global Terrorism Sanctions Regulations, 31 CFR part 594 (68 FR 34196, June 6, 2003 (“the Regulations”), to implement Executive Order (E.O.) 13224 of September 23, 2001, “Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten To Commit, or Support Terrorism” (66 FR 49079, September 25, 2001). OFAC has amended the Regulations on several occasions. On September 9, 2019, the President, invoking the authority of, inter alia, the International Emergency Economic Powers Act (50 U.S.C. 1701–1706) (IEEPA) and the United Nations Participation Act (22 U.S.C. 287c) (UNPA), issued E.O. 13886, “Modernizing Sanctions To Combat Terrorism” (84 FR 48041, September 12, 2019), effective September 10, 2019. In E.O. 13886, the President, finding it necessary to consolidate and enhance sanctions to combat acts of terrorism and threats of terrorism by foreign terrorists, terminated the national emergency declared in E.O. 12947 of January 23, 1995, “Prohibiting Transactions With Terrorists Who Threaten To Disrupt the Middle East Peace Process” (60 FR 5079, January 25, 1995), and revoked E.O. 12947, as amended by E.O. 13099 of August 20, 1998, “Prohibiting Transactions With Terrorists Who Threaten To Disrupt the Middle East Peace Process” (63 FR 45167, August 25, 1998). In addition, the President amended E.O. 13224, in order to build upon initial steps taken in E.O. 12947, to further strengthen and consolidate sanctions to combat the continuing threat posed by international terrorism, and in order to take additional steps to deal with the national emergency declared in E.O. 13224, with respect to the continuing and immediate threat of grave acts of terrorism and threats of terrorism committed by foreign terrorists, which include acts of terrorism that threaten the Middle East peace process. Section 1 of E.O. 13886 replaces in its entirety section 1 of E.O. 13224, which had been amended by a number of prior Executive orders (E.O. 13224, as amended by all such authorities, is referred to herein as “amended E.O. 13224”), but does not amend the Annex to E.O. 13224, which was previously amended by E.O. 13268 of July 2, 2002, “Termination of Emergency With Respect to the Taliban and Amendment of Executive Order 13224 of September 23, 2001” (67 FR 44751, July 3, 2002) (“amended Annex to E.O. 13224”).

SDN