LONDON: A diamond and art dealer was sanctioned Tuesday by the UK and US governments for allegedly funding Lebanon’s militant Hezbollah group.
The UK Treasury said it froze Nazem Ahmad’s assets in the UK because he financed the Iranian-backed Shiite militant organization that has been designated an international terrorist group. Under the sanctions, no one in the UK or US will be able to do business with Ahmad or his businesses.
“The firm action we have taken today will clamp down on those who are funding international terrorism,” said Joanna Penn, UK treasury minister. She said the move would strengthen the UK’s economic and national security.
Ahmad was similarly sanctioned in 2019 by the US Treasury, which alleged he was a “prominent Lebanon-based money launderer and significant Hezbollah financier.” It also said he was involved in smuggling “blood diamonds,” which are mined in conflict zones and sold to finance violence.
The US Treasury Department on Tuesday afternoon sanctioned a network of 52 individuals and entities from Lebanon to South Africa to the United Kingdom to Hong Kong for their associations with Ahmad.
The sanctioned group is accused of running an international money laundering and sanctions evasion operation, facilitating the payment and delivery of jewelry, art and luxury goods for the benefit of Ahmad, according to Treasury.
Included in the sanctions announcement are Ahmad’s children, wife, extended family members, business associates, real estate firms and several diamond companies based in South Africa, Belgium and Dubai, which acted as brokers for jewelry and art sales.
US Treasury’s Under Secretary for Terrorism and Financial Intelligence Brian E. Nelson said individuals involved in the luxury goods trade “should be attentive to these potential tactics and schemes, which allow terrorist financiers, money launderers, and sanctions evaders to launder illicit proceeds through the purchase and consignment of luxury goods.”
Rewards for Justice — the US State Department’s national security rewards program — is offering a reward of up to $10 million for information related to Ahmad.
A Beirut art gallery the UK government identified as belonging to Ahmad did not immediately reply to an email seeking comment.
UK, US sanction art dealer with suspected ties to Hezbollah
https://arab.news/g5xxj
UK, US sanction art dealer with suspected ties to Hezbollah
- The UK Treasury said it froze Nazem Ahmad's assets in the UK because he financed the Iranian-backed Shiite militant organization
- The US Treasury Department on Tuesday afternoon sanctioned a network of 52 individuals and entities from Lebanon to South Africa to the United Kingdom to Hong Kong
Lebanon approves financial gap draft law despite opposition from Hezbollah and Lebanese Forces
- Legislation aims to address the fate of billions of dollars in deposits that have been inaccessible to Lebanese citizens during the country’s financial meltdown
BEIRUT: Lebanon’s Cabinet on Friday approved a controversial draft law to regulate financial recovery and return frozen bank deposits to citizens. The move is seen as a key step in long-delayed economic reforms demanded by the International Monetary Fund.
The decision, which passed with 13 ministers voting in favor and nine against, came after marathon discussions over the so-called “financial gap” or deposit recovery bill, stalled for years since the banking crisis erupted in 2019. The ministers of culture and foreign affairs were absent from the session.
The legislation aims to address the fate of billions of dollars in deposits that have been inaccessible to Lebanese citizens during the country’s financial meltdown.
The vote was opposed by three ministers from the Lebanese Forces Party, three ministers from Hezbollah and the Amal Movement, as well as the minister of youth and sports, Nora Bayrakdarian, the minister of communications, Charles Al-Hajj, and the minister of justice, Adel Nassar.
Finance Minister Yassin Jaber broke ranks with his Hezbollah and Amal allies, voting in favor of the bill. He described his decision as being in line with “Lebanon’s supreme financial interest and its obligations to the IMF and the international community.”
The draft law triggered fierce backlash from depositors who reject any suggestion they shoulder responsibility for the financial collapse. It has also drawn strong criticism from the Association of Banks and parliamentary blocs, fueling fears the law will face intense political wrangling in Parliament ahead of elections scheduled in six months.
Prime Minister Nawaf Salam confirmed the Cabinet had approved the bill and referred it to Parliament for debate and amendments before final ratification. Addressing public concerns, he emphasized that the law includes provisions for forensic auditing and accountability.
“Depositors with accounts under $100,000 will be repaid in full with interest and without any deductions,” Salam said. “Large depositors will also receive their first $100,000 in full, and the remainder will be issued as negotiable bonds backed by the assets of the Central Bank, valued at around $50 billion.”
He said further that bondholders will receive an initial 2 percent payout after the first tranche of repayments is completed.
The law also includes a clause requiring criminal accountability. “Anyone who smuggled funds abroad or benefited from unjustified profits will be fined 30 percent,” Salam said.
He emphasized that Lebanon’s gold reserves will remain untouched. “A clear provision reaffirms the 1986 law barring the sale or mortgaging of gold without parliamentary approval,” he said, dismissing speculation about using the reserves to cover financial losses.
Salam admitted that the law was not perfect but called it “a fair step toward restoring rights.”
“The banking sector’s credibility has been severely damaged. This law aims to revive it by valuing assets, recapitalizing banks, and ending Lebanon’s dangerous reliance on a cash economy,” he said. “Each day of delay further erodes people’s rights.”
While the Association of Banks did not release an immediate response after the vote, it previously argued during discussions that the law would destroy remaining deposits. Bank representatives said lenders would struggle to secure more than $20 billion to cover the initial repayment tier and accused the state of absolving itself of responsibility while effectively granting amnesty for decades of financial mismanagement and corruption.
The law’s fate now rests with Parliament, where political competition ahead of the 2025 elections could complicate or delay its passage.
Lebanon’s banking sector has been at the heart of the country’s economic collapse, with informal capital controls locking depositors out of their savings and trust in state institutions plunging. International donors, including the IMF, have made reforms to the sector a key condition for any financial assistance.
