US Offers $10 Million Reward for Information on Hezbollah’s Financial Operations in South America
On Monday, the US State Department revealed a reward of up to $10 million for any information that could disrupt financial activities supporting Hezbollah, the Lebanon-based terrorist group backed by Iran, particularly in South America.
The announcement came through the State Department’s Reward for Justice (RFJ) Program, which is specifically targeting Hezbollah’s financial networks in the tri-border area of Argentina, Brazil, and Paraguay.
According to the RFJ, Hezbollah’s financers and facilitators are reportedly earning money in this region through various illicit means, including money laundering, drug trafficking, and smuggling operations involving coal, oil, and luxury goods, among others.
The statement mentioned that these operations extend to generating revenue from various commercial activities throughout Latin America, like construction, importing, and real estate sales.
The State Department expressed its aim to gather intelligence that would disrupt Hezbollah’s financial streams, identify its donors, and close financial institutions facilitating these transactions. There’s also a focus on uncovering front companies and dismantling criminal plans involving Hezbollah’s members and supporters.
The US government has been concerned about terrorist activities in the tri-border area for over 25 years, with Hezbollah always under suspicion. However, other Middle Eastern terrorist groups like al-Qaeda and Hamas have been noted as operating in the vicinity as well.
The Department of Justice (DOJ) has indicated that the large Arab community in the region is fostering the establishment of sleeper cells for Islamic terrorists. This concern isn’t new; a 2003 DOJ report warned about the presence of organized crime rings working in the area.
The tri-border area has a long history of being a hotspot for criminal activity. It offers various opportunities for terrorist networks to collaborate with local and international organized crime groups. Corruption and inadequate law enforcement have made it attractive for gangs, with financial institutions often willing to overlook criminal transactions.
A recent analysis by RAND Corporation noted that Hezbollah has emerged as the primary terrorist organization in the region, though gathering credible intelligence on its activities remains challenging. Analysts fear Hezbollah may redirect more resources to Latin America, especially after suffering setbacks in Syria and Gaza this year.
Hezbollah has established a significant document fraud operation in Latin America, producing counterfeit passports and other documents, which blends seamlessly with its extensive money laundering network. This creates a serious threat landscape that the US authorities are keen to address.
There are reports indicating that despite efforts by various US agencies—including the Department of Homeland Security and the Federal Bureau of Investigation—Hezbollah continues to receive support from the Lebanese diaspora in the region.
Furthermore, Brazilian federal police are particularly concerned with Hezbollah’s connections to local drug gangs like the First Capital Command (PCC), notorious for its roots in Brazil’s harsh prison system and its historical ties to organized crime.
Initially formed in the 1990s, the PCC gained traction after notable riots in Brazilian prisons and political activism aimed at prison reform. Although the group has diminished in power since its peak, it remains a significant security risk, with reports surfacing that Lebanese arms dealers associated with Hezbollah are supplying weapons to the PCC in exchange for protection for detained Lebanese criminals.
