US accuses 2 Lebanese money exchanges of drug, Hezbollah links

The move against the exchange houses is the first time a non-bank has been targeted under the U.S. anti-money laundering law known as Section 311 of the Patriot Act.

US accuses 2 Lebanese money exchanges of drug, Hezbollah links

World Bulletin/News Desk

The United States targeted two Lebanese money exchange houses, accusing them on Tuesday of helping launder funds for an international drug trafficking ring and financing Hezbollah.

The U.S. Treasury Department labeled the exchange houses, Kassem Rmeiti and Halawi Exchange, "primary money laundering concerns," which is likely to cut them off from the U.S. financial system.

The Treasury and the U.S. Drug Enforcement Administration said that tens of millions of dollars in drug proceeds and other illegal funds moved through the exchange houses, which do most of their transactions in cash.

The move is part of a multi-year probe that has exposed what the U.S. government says are tight links between South American drug traffickers and groups such as Hezbollah.

Derek Maltz, who heads the DEA's Special Operations Division, said a conservative estimate is that half of the world's "terrorist" organizations have links to drug trafficking.

South American drug traffickers are eager to expand into lucrative markets in Europe and the Middle East via new shipment routes through West African countries, he said.

U.S. officials say Hezbollah receives money from Iran, which has also been hit with financial sanctions, including on its oil exports, over its nuclear program.

Neither Kassem Rmeiti nor Halawi Exchange could be reached for comment after normal business hours in Lebanon. On its website, Halawi says it has been helping customers with money exchange and remittances since 1960.

USED CARS AND DRUGS

Officials described an international network, where drug traffickers in South America send cocaine to European markets via West Africa, with its notoriously lax law enforcement. Drug proceeds get laundered through exchange houses in Lebanon and other parts of the Middle East, these officials said, with some of the funds getting channeled to Hezbollah.

The drug ring also moves proceeds through bulk-cash smuggling, used car dealerships in the United States and consumer goods shipments to Asia, the U.S. officials said.

The U.S. government first moved against the network in 2011, designating its alleged leader, Ayman Joumaa, a "drug kingpin," allowing the government to seize his assets. They said the network was doing as much as $200 million a month in business.

They also targeted the Lebanese Canadian Bank, the eighth-largest bank in Lebanon at the time for allegedly helping the Joumaa network launder money, and last year seized $150 million of its assets.

The move against the exchange houses is the first time a non-bank has been targeted under the U.S. anti-money laundering law known as Section 311 of the Patriot Act.

Last Mod: 24 Nisan 2013, 11:14
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