OFAC Sanctions Hizballah Affiliate for Transporting Drug Proceeds

OFAC sanctioned a Lebanese national, identified as Kassem Chams ("Chams"), and affiliated organizations as Specially Designated Narcotics Traffickers. OFAC also identified Chams, as part of a network of Hizballah.

According to Under Secretary for Terrorism and Financial Intelligence Sigal Mandelker, Chams' international money laundering network transported millions of dollars a month in illegal narcotics proceeds on behalf of drug kingpins, including to and from Australia, Colombia, Italy, Lebanon, the Netherlands, Spain, Venezuela, France, Brazil and the U.S. as part of its narcotics money laundering scheme.

OFAC said that its actions are part of a joint effort with the U.S. Drug Enforcement Administration's Project Cassandra to target Hizballah's global criminal support networks that "operate as a logistics, procurement and financing arm for Hizballah and which are involved in the global movement of large quantities of narcotics and proceeds from narcotics sales."

As a result of this action, any assets of Chams and the designated entities in the U.S. or in the control of a U.S. person must be blocked and reported to OFAC. OFAC regulations generally forbid all dealings by U.S. persons or persons transiting the U.S. that concern any property of blocked persons.

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