As Hezbollah faces mounting military pressure from Israel and growing domestic demands in Lebanon to submit to State authority, attention is turning to its financial networks in West Africa, Erem News reported. 

Although analysts have often focused on Latin America as a financial and political base for Hezbollah, reports by research institutions, including the Foundation for Defense of Democracies (FDD), highlight West Africa’s growing importance. Weak oversight, corruption and gaps in financial monitoring can make the region vulnerable to illicit activity.

Some analysts argue that enforcing financial restrictions in West Africa is more difficult than in Latin America, where right-wing political forces have gained ground and Washington has strengthened its influence in several countries.

West Africa as an alternative source of funding

Reports indicate that Hezbollah-linked financial networks operate in several West African countries, particularly Côte d’Ivoire, Senegal, The Gambia, Guinea and Sierra Leone. These networks are distinct from those associated with criminal cartels.

The countries have long hosted Lebanese diaspora communities with established commercial and social ties. While these networks have helped Lebanese businesses expand across the region, they can also provide channels for moving money and goods across borders, potentially making illicit transactions harder to detect.

Research by the FDD and German and other international institutions has examined the economic influence of parts of the Lebanese diaspora, particularly members of the Shia community. In Côte d’Ivoire, Lebanese and Lebanese-origin businesspeople hold significant positions in distribution, packaging, real estate and general trade.

The presence of Lebanese businesses in these sectors does not, by itself, indicate any connection to Hezbollah. However, investigators and analysts have raised concerns that some businesspeople may exploit weaknesses in local financial and regulatory systems to support networks linked to the group.

Corruption within state institutions, weak corporate governance and limited digitalization can make financial transactions harder to monitor.

According to these assessments, some individuals use shell companies and collect donations under religious or charitable auspices. The money may then be transferred to Lebanon through informal financial and remittance networks, potentially bypassing conventional banking controls.

Trade used to conceal financial flows

Analysts say the alleged financial networks extend beyond donations and informal transfers. Reports describe the use of trade-based money laundering, in which commercial transactions help move money or conceal its origins.

Activities cited in these assessments include trading in essential commodities and food products, importing used vehicles, and dealing in precious and other high-value metals.

Such transactions can make illicit financial flows harder to trace because they take place alongside legitimate business activity. This can complicate efforts to distinguish ordinary trade from transactions intended to evade sanctions or finance illicit networks.

The U.S. Department of the Treasury and the Financial Action Task Force (FATF), the international body that sets standards for combating money laundering and terrorist financing, have documented individuals and business networks accused of helping finance Hezbollah or evade sanctions.

Countries linked to some of these networks include The Gambia, the Democratic Republic of the Congo and Sierra Leone, where certain individuals and families have been associated with extensive commercial operations.

Reports have also raised concerns that some business figures use political connections and honorary diplomatic positions to facilitate cross-border transfers, move cash and avoid scrutiny.

The complexity of these networks makes it difficult for authorities to identify the ultimate owners of companies, establish where funds originate and trace transactions across multiple countries.

Weak oversight complicates enforcement

U.S. and international sanctions have increased pressure on Iran’s economy and its ability to finance allied groups, constraining a major source of funding for Hezbollah.

But restrictions on direct funding do not necessarily prevent the group from accessing money through other channels. Networks operating across several countries can provide alternatives, particularly when financial regulations, enforcement capabilities and access to information differ from one jurisdiction to another.

West Africa’s fragmented financial system adds to the challenge. Large institutions, including the African Development Bank, operate alongside smaller financial networks and informal transfer systems that may face different levels of oversight.

These disparities can make it harder for investigators to follow money across borders, identify its ultimate beneficiaries and freeze assets before they are moved elsewhere.

Informal remittance channels, opaque corporate structures and uneven enforcement also complicate cooperation among financial intelligence units and law enforcement agencies.

Authorities are increasingly examining whether networks in West Africa are helping Hezbollah maintain access to funding despite sanctions and other restrictions.

U.S. sanctions target business figures

The U.S. Treasury has previously sanctioned business figures accused of supporting Hezbollah-linked financial networks in Africa.

In March 2022, the department announced sanctions against two prominent business figures operating out of Guinea, Ali Saadeh and Ibrahim Taher.

Washington accused Saadeh of serving as a key political and financial intermediary for networks linked to Hezbollah and helping them gain access to senior officials in previous Guinean administrations.

Taher was accused of using his position as Lebanon’s honorary consul in Côte d’Ivoire to facilitate travel through Conakry’s airport with limited scrutiny. He was also implicated in moving large sums of cash and bribing customs officials.

The U.S. Treasury has also targeted commercial and financial networks linking the Middle East, Latin America and West Africa. Cases cited in this context include the network associated with financier Adham Tabaja and the company Inmaa Engineering and Contracting.

Other businesspeople and commercial partners have faced sanctions over alleged links to financial networks connecting Beirut with African capitals, including Freetown in Sierra Leone and Banjul in The Gambia.

One such figure is Ali Mohammad Qansooh, whose networks have been linked to Hezbollah-affiliated financing structures involving bonds and front companies.

These cases show how authorities have sought to disrupt financial channels that rely on international business relationships, corporate structures and intermediaries rather than direct transfers through conventional banks.

They also highlight the difficulty of dismantling networks operating across several jurisdictions with different laws and levels of financial oversight.