Coordinator for Counterterrorism Ambassador Nathan A. Sales Travels to Lithuania

09/20/2020 08:18 AM EDT

Office of the Spokesperson

Coordinator for Counterterrorism Ambassador Nathan A. Sales will travel to Lithuania Monday, September 21 for meetings with the Vice Minister of Foreign Affairs, Vice Minister of Interior, representatives of the President of Lithuania's National Security and Foreign Policy Groups, and other senior national security and foreign policy officials.  He will congratulate Lithuania on its recent actions against the terrorist group Hizballah.  Ambassador Sales will also participate in a video teleconference with senior government officials from Lithuania, Latvia, and Estonia to discuss shared efforts against Hizballah.

Acting with the authorities of the Under Secretary for Civilian Security, Democracy, and Human Rights, Ambassador Sales will meet with representatives of Lithuania's Jewish community to discuss combating anti-Semitism. He will also meet with members of Belarusian civil society to discuss how the United States can support the Belarusian people's demand for free and fair elections and an end to the Belarusian authorities' violent post-election crackdown.

The United States Designates Hizballah Companies and Official

09/17/2020 11:02 AM EDT

Michael R. Pompeo, Secretary of State

Lebanon's political leaders have long exploited the lack of transparency in Lebanon's economy to conceal their self-enrichment, while pretending they are defending the rights of their people.  Despite its claims to the contrary, the terrorist group Hizballah is every bit as involved in this deception as other actors.

Today, the United States is designating two Hizballah-linked companies and one Hizballah official pursuant to Executive Order 13224 as amended.  The United States is designating Arch Consulting and Meamar Construction for being owned, controlled, or directed by Hizballah, a U.S.-designated foreign terrorist organization and Specially Designated Global Terrorist.  We are designating Sultan Khalifa As'ad for being a leader or an official of Hizballah.

Arch Consulting and Meamar Construction are two of many companies subordinate to Hizballah's Executive Council, and Hizballah has used these companies to conceal its economic activity and evade U.S. sanctions.  Hizballah collaborated with former Lebanese Minister Yusuf Finyanus to ensure that Arch and Meamar won Lebanese government contracts worth millions of dollars, and the companies sent a portion of those funds to Hizballah's Executive Council.  The United States designated Finyanus on September 8 for abusing his cabinet position to provide material support to Hizballah.  Arch Consulting was previously part of and continues to provide funds to Jihad al-Bina, a prominent Hizballah construction company designated by the United States in 2007.  Sultan Khalifa As'ad oversees Arch, Meamar, and other Hizballah companies in his position on Hizballah's Executive Council, where he helps manage the terrorist group's municipal affairs.  As'ad coordinates directly with Hashim Safi al-Din, head of Hizballah's Executive Council, to guide the activities of Arch, Meamar, and other Hizballah companies.

This scheme involving political leaders directing contracts to political allies while enriching themselves is exactly the type of corruption against which the Lebanese people are protesting.  Hizballah exploits Lebanon's corrupt system just like other parties, as today's designations and our September 8 designation of former ministers demonstrate.  The Lebanese people have been demonstrating against corruption for nearly a year and demanding that their government address their basic needs after decades of political dysfunction.  The Lebanese people deserve better, and the United States will continue to support their calls for an end to corruption and more responsive governance.

Treasury Targets Hizballah Executive Council Companies and Official

September 17, 2020

Washington – Today, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned two Lebanon-based companies, Arch Consulting and Meamar Construction, for being owned, controlled, or directed by Hizballah. Additionally, OFAC designated Sultan Khalifah As'ad, a Hizballah Executive Council official, who is closely associated with both companies.

"Through Hizballah's exploitation of the Lebanese economy and manipulation of corrupt Lebanese officials, companies associated with the terrorist organization are awarded government contracts," said Secretary of the Treasury Steven T. Mnuchin. "The United States remains committed to targeting Hizballah and its supporters as they corruptly abuse Lebanese resources to enrich their leaders while the Lebanese people suffer from inadequate services." 

Hizballah's activities permeate all aspects of the Lebanese economy, including the construction and infrastructure sectors. Hizballah leverages Arch and Meamar to conceal money transfers to Hizballah's own accounts, further enriching Hizballah's leadership and supporters, and depriving the Lebanese people of much-needed funds. Hizballah conspires with Lebanese officials, including the recently designated former Minister of Public Works and Transportation, Yusuf Finyanus, to direct government contracts worth millions of dollars to these companies, which are overseen by Hizballah's Executive Council. The Council also receives the corrupt profits from these companies.

This action builds on previous Treasury actions against Hizballah Executive Council companies, including Atlas Holdings, which was designated in February 2020, as well as the recent designations earlier this month of corrupt former Lebanese Ministers Yusuf Finyaus and Ali Hassan Khalil for supporting Hizballah.  

These entities and individual are being designated pursuant to Executive Order (E.O.) 13224, as amended by E.O. 13886.

ARCH CONSULTING AND MEAMAR CONSTRUCTION

Arch Consulting (Arch) and Meamar Construction (Meamar) are owned, controlled, or directed by Hizballah, a person whose property and interests in property are blocked pursuant to E.O. 13224, as amended.

Arch and Meamar are two of several companies subordinate to Hizballah's Executive Council. Hizballah takes advantage of these entities' privately owned appearance to conceal money transfers for Hizballah and evade U.S. sanctions. As of 2019, Hizballah worked with U.S.-designated former Lebanese Minister Yusuf Finyanus to ensure that Arch and Meamar won bids for Lebanese government contracts worth millions of dollars. Both companies in turn sent some profits from these contracts to Hizballah's Executive Council. 

Since their inception, Arch and Meamar have been associated with Hizballah. According to publicly available information, several senior officials have ties to Hizballah; Sultan Khalifah As'ad is publicly listed as a founder of Meamar, and several individuals included in the company's registration documents also have public ties to Hizballah. Arch is registered under the name of a Hizballah-supported candidate in the 2004 municipal elections. Moreover, Arch was previously part of the U.S.-designated Jihad al-Bina company, Hizballah's main construction company. Despite becoming independent in 2005, it remains an important source of funding for Jihad al-Bina. OFAC designated Jihad al-Bina pursuant to E.O. 13224 in February 2007.

SULTAN KHALIFAH AS'AD

Sultan Khalifah As'ad (As'ad) is an official of Hizballah, a person whose property and interests in property are blocked pursuant to E.O. 13224, as amended.

As'ad is a senior Hizballah Executive Council official who serves as the deputy to Executive Council Chairman Hashim Safi al-Din, who was designated pursuant to E.O. 13224 in May 2017. In addition to serving as Hashim Safi al-Din's deputy, As'ad serves as the senior official for Hizballah's central municipal portfolio, a position he has held since at least 2011, and for which he appears regularly at public events. As of early 2019, As'ad was responsible for dozens of companies subordinate to the Executive Council, including Arch and Meamar. He provided project guidance to these companies and was involved in their financial and legal issues. He reported to and received guidance from Hashim Safi al-Din about the companies and passed instructions to the companies' directors and Hizballah's Finance Committee.

SANCTIONS IMPLICATIONS

The Treasury Department continues to prioritize disruption of the full range of Hizballah's illicit financial activity, and with this action has designated over 90 Hizballah-affiliated individuals and entities since 2017. OFAC took this action pursuant to E.O. 13224, as amended, which targets terrorists and those providing support to terrorists or acts of terrorism. Hizballah was designated by the Department of State as a Foreign Terrorist Organization in October 1997 and as a Specially Designated Global Terrorist (SDGT) pursuant to E.O. 13224 in October 2001. 

As a result of today's action, all property and interests in property of the individuals named above, and of any entities that are owned, directly or indirectly, 50 percent or more by them, individually, or with other blocked persons, that are in the United States or in the possession or control of U.S. persons, are blocked and must be reported to OFAC. Unless authorized by a general or specific license issued by OFAC or otherwise exempt, OFAC's regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods or services from any such person.

Furthermore, engaging in certain transactions with the entities and individual designated today entails risk of secondary sanctions pursuant to E.O. 13224, as amended, and the Hizballah Financial Sanctions Regulations, which implement the Hizballah International Financing Prevention Act of 2015, as amended by the Hizballah International Financing Prevention Amendments Act of 2018. Pursuant to these authorities, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that knowingly facilitates a significant transaction for a terrorist group like Hizballah, or a person acting on behalf of or at the direction of, or owned or controlled by, an SDGT such as Hizballah.

View identifying information on the entities and individual designated today.

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U.S. Welcomes Serbia’s Intention to Designate Hizballah as a Terrorist Organization

09/13/2020 10:07 AM EDT

Michael R. Pompeo, Secretary of State

Serbia's announcement that it will designate Hizballah as a terrorist organization in its entirety is another significant step limiting this Iranian backed terrorist group's ability to operate in Europe. This important action was announced as part of the historic commitments President Trump secured on a wide range of economic normalization issues between Serbia and Kosovo, coupled with the steps both nations are taking to help achieve peace in the Middle East.

There is no doubt that the dominoes are falling on Hizballah's European operations, where it has continued to plot terrorist attacks, procure military technology, and raise much needed funding.  Recent actions by Germany and Lithuania against Hizballah follow those taken last year by the United Kingdom and Kosovo.  The United States continues to call on the European Union and European nations to designate or ban Hizballah in its entirety, and recognize the reality that it is a terrorist organization root and branch with no distinction between its so-called "military" and "political" wings.  We urge all countries in Europe and elsewhere to take whatever action they can to prevent Hizballah operatives, recruiters, and financiers from operating on their territories.

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The United States Designates Former Lebanese Government Ministers

PRESS STATEMENT

MICHAEL R. POMPEO, SECRETARY OF STATE

SEPTEMBER 8, 2020

For too long, Lebanon's political leaders have ignored their responsibility to address the needs of their people and instead built a political system that serves their private interests.  The August 4 explosion at the Beirut port is the most recent and tragic demonstration of Lebanon's dysfunctional political system, which has also enabled a terrorist group to hold the country's governance hostage to its own agenda.  The United States supports the Lebanese people's call for reform, and we will use all available authorities to promote accountability for Lebanese leaders who have failed their people.

Today, the United States is designating two former Lebanese ministers, Yusuf Finyanus and Ali Hassan Khalil, pursuant to Executive Order (E.O.) 13224 as amended for providing material support to Hizballah, a U.S.-designated foreign terrorist organization and Specially Designated Global Terrorist.  While holding positions in previous Lebanese cabinets, Finyanus and Khalil directed political and economic favors to Hizballah, including ensuring Hizballah-owned companies won government contracts worth millions of dollars and moving money from government ministries to Hizballah-associated institutions.

Today's designations demonstrate that Lebanese politicians who have provided a false veneer of political legitimacy to Hizballah or abused their positions to direct public funds to the terrorist group are as responsible for its entrenched influence as Hizballah's own members or the corrupt businessmen and money launderers that have helped fund the group for decades.

Hizballah depends on Lebanon's corrupt political system for survival.  Anyone helping to advance Hizballah's political or economic interests is further eroding what remains of effective governance and facilitating financing for terrorism.  The Lebanese people deserve better, and the United States will continue to support their calls for an end to corruption and political stagnation.

Treasury Targets Hizballah’s Enablers in Lebanon

September 8, 2020

Washington – Today, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) sanctioned former Lebanese government ministers Yusuf Finyanus and Ali Hassan Khalil, who provided material support to Hizballah and engaged in corruption. These designations underscore how some Lebanese politicians have conspired with Hizballah at the expense of the Lebanese people and institutions. The United States supports the Lebanese people in their calls for a transparent and accountable government free of corruption. The catastrophic explosion at the port of Beirut on August 4, 2020, has amplified these urgent calls, and the U.S government stands firmly in support of the Lebanese people's demands.

"Corruption has run rampant in Lebanon, and Hizballah has exploited the political system to spread its malign influence," said Secretary Steven T. Mnuchin. "The United States stands with the people of Lebanon in their calls for reform and will continue to use its authorities to target those who oppress and exploit them."

These individuals are being designated pursuant to Executive Order (E.O.) 13224, as amended.

The multi-layered crisis in Lebanon stems from decades of corruption and economic mismanagement. Some Lebanese political leaders have used backdoor deals and reliance on Hizballah for personal gain and gains for their political allies ahead of the needs of the Lebanese people. Since October 2019, popular, cross-sectarian protests across the country demanded political and economic reform in Lebanon. The protesters' calls for "all of them, means all of them" demonstrates the seriousness of their desire for reform and to pull back the curtain on certain groups' corruption, including Hizballah.

CORRUPT MINISTERS SUPPORT HIZBALLAH AND BENEFIT PERSONALLY

Yusuf Finyanus is the former Minister of Transportation and Public Works (2016-2020). As of mid-2019, Hizballah used its relationship with officials in the Lebanese government, including Finyanus as Minister of Transportation and Public Works, to siphon funds from government budgets to ensure that Hizballah-owned companies won bids for Lebanese government contracts worth millions of dollars. In 2015, Hizballah gave Finyanus hundreds of thousands of dollars in exchange for political favors. Also in 2015, Finyanus met regularly with Wafiq Safa, whom the U.S. Treasury designated in 2019 for his leadership role in Hizballah's security apparatus. Finyanus also helped Hizballah gain access to sensitive legal documents related to the Special Tribunal for Lebanon and served as a go-between for Hizballah and political allies. In addition to his activities supporting Hizballah, Finyanus engaged in corruption while in his position as Minister of Transportation and Public Works by diverting funds from the ministry to offer perks to bolster his political allies.

Ali Hassan Khalil previously served as the Minister of Finance (2014-2020) and Minister of Public Health (2011-2014). As Minister of Finance, Khalil was one of the officials Hizballah leveraged a relationship with for financial gain. In late 2017, shortly before the Lebanese parliamentary elections that would take place in May 2018, Hizballah leaders, fearing a weakening of their political alliance with the Amal Movement, reached an agreement with Khalil where he was prepared to receive Hizballah support for his political success. Khalil worked to move money in a manner that would avoid U.S. sanctions enforcement from government ministries to Hizballah-associated institutions. Additionally, Khalil used his position as Minister of Finance to attempt to have U.S. financial restrictions on Hizballah eased so that the group would have less difficulty moving money. Khalil also used the power of his office to exempt a Hizballah affiliate from paying most taxes on electronics imported to Lebanon, and a portion of what was paid was collected to support Hizballah. As of late 2019, Khalil as Finance Minister refused to sign checks payable to government suppliers in an effort to solicit kickbacks. He demanded that a percentage of the contracts be paid to him directly.

SANCTIONS IMPLICATIONS

The Treasury Department continues to prioritize disruption of the full range of Hizballah's illicit financial activity, and with this action has designated over 90 Hizballah-affiliated individuals and entities since 2017. OFAC took this action pursuant to E.O. 13224, as amended, which targets terrorists and those providing support to terrorists or acts of terrorism. Hizballah was designated by the Department of State as a Foreign Terrorist Organization in October 1997 and as a Specially Designated Global Terrorist (SDGT) pursuant to E.O. 13224 in October 2001. 

As a result of today's action, all property and interests in property of the individuals named above, and of any entities that are owned, directly or indirectly, 50 percent or more by them, individually, or with other blocked persons, that are in the United States or in the possession or control of U.S. persons, are blocked and must be reported to OFAC. Unless authorized by a general or specific license issued by OFAC or otherwise exempt, OFAC's regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person or the receipt of any contribution or provision of funds, goods or services from any such person.

Furthermore, engaging in certain transactions with the individuals designated today entails risk of secondary sanctions pursuant to E.O. 13224, as amended, and the Hizballah Financial Sanctions Regulations, which implements the Hizballah International Financing Prevention Act of 2015, as amended by the Hizballah International Financing Prevention Amendments Act of 2018. Pursuant to these authorities, OFAC can prohibit or impose strict conditions on the opening or maintaining in the United States of a correspondent account or a payable-through account by a foreign financial institution that knowingly facilitates a significant transaction for a terrorist group like Hizballah, or a person acting on behalf of or at the direction of, or owned or controlled by, an SDGT such as Hizballah.

OFAC closely coordinated this action with the Drug Enforcement Administration (DEA). DEA's work with OFAC is part of DEA's broader effort under its Project Cassandra to target Hizballah's global criminal support network that operates as a logistics, procurement, and financing arm for Hizballah.

View identifying information on the individuals designated today.