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Lebanese and EU Banks Likely to Feel Heat from Hezbollah Sanctions Law
By Colby Adams
printNew U.S. sanctions intended to block a blacklisted Lebanese Shiite group from accessing the global financial system will likely raise compliance risks for lenders with operations in Lebanon and Europe, say analysts. Under the Hezbollah International Financing Prevention Act, or HIFPA, U.S. officials can prohibit or limit U.S correspondent account services for financial institutions that knowingly facilitate "significant" transactions on behalf of the group. The measure, which became law last month, also obligates the White House to regularly report on Hezbollah's fundraising and trade-based money laundering activities That the law borrows heavily from the seldom-enforced Comprehensive Iran Sanctions Accountability and...
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