The chart on the right shows the intricate money-laundering system the Lebanese Canadian Bank used to divert money to the Shiite militant group Hezbollah, according to United States officials. (The NYT, Dec 13, 2011). And on June 25, 2013, the Manhattan U.S. Attorney announced “$102 Million settlement of civil forfeiture and money laundering claims against the Lebanese Canadian Bank. The “settlement resolves claims related to money laundering network for narcotics trafficking and other criminal proceeds, including funds used to support Hizballah.” Why did the Justice Department settle with the bank? Why was the bank allowed to continue its operations?
***On Monday, in Washington, the Drug Enforcement Administration announced the arrest of operatives of Iran-sponsored Hezbollah’s External Security Organization Business Affairs Component (BAC) for trafficking in cocaine into the U.S. and Europe and laundering millions of dollars of their ill-gotten gains into the coffers of Hezbollah, often through the same Lebanese Canadian Bank or its subsidiaries. In addition, assets of companies and individuals affiliated with the group’s drug trafficking and money laundering activities have been frozen. Lebanese banks and their subsidiaries have helped launder the money, as they have done for decades. However, only last December, shortly before lifting the sanctions on Iran, President Obama signed the bill which “imposes mandatory sanctions on banks that knowingly conduct business with Hezbollah.”
The Lebanon-based Iran affiliated Hezbollah has enjoyed Tehran’s support since its inception the early 1980s. Iran has been sponsoring the terrorist group’s attacks on Israel and assisted in Hezbollah’s international expansion and attacks on Israeli and Jewish targets abroad. At the same time, Iran always encouraged Hezbollah members to generate more funds through illegal activities, such as arms and drug trafficking, money laundering, fraud, smuggling counterfeit products, used cars and car parts and everything else.