Hezbollah and the drugs: the global smuggling and money laundering network

With the continuation of the fighting between Israel and Hezbollah, and in light of the ongoing damage to the organization’s financial system – including the parallel financial institutions such as the “Al-Qard Al-Hasan Fund” and the smuggling crossings between Syria and Lebanon – the spotlight returns to the financing networks that the organization has woven for decades. Hezbollah’s involvement in drug trafficking and money laundering, alongside its close ties with international criminal organizations, turn out to be a significant source of income for the organization.

The involvement of Hezbollah and other Iranian militias in the production and smuggling of captagon from Syria in the last decade is only a short chapter in a long journey of criminal activity, the influence of which has spread across five continents.

Hezbollah’s involvement in the drug trade began in the late 1980s, when it managed to penetrate the Lebanese immigrant communities in Latin America. Under the influence of the religious leadership and anti-Western and anti-Israeli slogans, money transfers began in the form of “homs” (religious tax), “charity” and donations. Soon, these turned into millions of dollars in drug profits, smuggling and other criminal activities, under the supervision of the organization’s operatives in Colombia, Brazil, Venezuela, Mexico and other countries.

In the years following the 9/11 attacks, Colombian law enforcement conducted routine wiretapping of drug gangs. They recorded hundreds of hours of phone calls in Arabic, in which the direct involvement of Hezbollah members in drug smuggling and money laundering, while closely cooperating with the Colombian mafia, was revealed.

These wiretapping led to the establishment of “Operation Cassandra” in 2008 – an extensive investigation project led by the American DEA, which included coordination with more than 60 local and international agencies in 30 countries. The investigation, which lasted over 8 years, revealed the full map of Hezbollah’s networks for international drug smuggling and money laundering.

The international drug trade and money laundering were not marginal activities in Hezbollah. Imad Moreniawho was number two in the organization until his elimination in 2008, was responsible for the criminal financial activity and established a special unit for financial affairs. after his death, Abdullah Zafi a-Din He assumed responsibility for these activities, at the same time as his role as Hezbollah’s envoy to Iran.

The organization’s smuggling networks have expanded to West Africa, the Middle East, Europe, Canada and Australia. According to researchers’ estimates, Hezbollah’s income from the drug trade, weapons and money laundering reaches a billion dollars a year. After Hezbollah’s involvement in the civil war in Syria, the organization transferred its expertise in the production and smuggling of drugs to Syria, Lebanon and Iraq. Starting in 2012, he established production units and secret laboratories in Syria for the production of Captagon – an addictive drug banned from sale in pharmacies since 1986.

In cooperation with the Syrian regime and the Iranian militias, Syria became the largest captagon producer in the world, with about 80% of the world’s production. The export value in 2021 reached 5.7 billion dollars, with the Gulf markets, and especially Saudi Arabia, being a major target.

The current war with Israel is the most expensive that Hezbollah has fought since its inception. The organization lost much of its military arsenal, suffered heavy losses in manpower, and its financial institutions were severely damaged. Experts estimate that Hezbollah’s drug activity is expected to increase in the near future, both from its strongholds in Syria and Lebanon and through its networks in Latin America, at the same time as money laundering efforts to restore its depleted coffers.