Iran and Hezbollah are turning to Dubai as a key conduit for moving oil revenue through exchange shops, private firms and couriers, using the Hawala system to quietly route funds into Lebanon
Iran has transferred hundreds of millions of dollars to Hezbollah over the past year through money exchanges and other businesses in Dubai, the Wall Street Journal reported, citing people familiar with the matter.
According to the report, Hezbollah is facing a financial crunch as it tries to rebuild and rearm after last year’s conflict with Israel. Its traditional smuggling routes through Syria were disrupted after the fall of the Iran-aligned Assad regime, and Lebanese authorities have stepped up enforcement against couriers moving cash through Beirut’s Rafic Hariri International Airport.
The Journal said Iran and Hezbollah have increasingly relied on Dubai, a major financial hub that Tehran has long used to evade sanctions. Oil revenues are allegedly funneled to Iran-linked exchange shops, private companies and couriers in the emirate, which then transfer funds to Lebanon through the Hawala system, a centuries-old trust-based method of transferring funds without physical movement of cash.
A UAE official told the paper the country is committed to preventing the misuse of its territory for illicit finance.
The Journal also cited the U.S. Treasury Department, which said in November that Iran’s Quds Force had transferred more than $1 billion to Hezbollah this year, largely through money exchange companies.
The report said Hezbollah remains financially strained a year after the ceasefire that ended the heaviest fighting, with the group pledging to rebuild damaged homes and support wounded fighters while trying to replenish its arsenal.
As reported by Ynetnews