Hezbollah has been able to exploit the European Union’s refusal to classify its political wing as a terrorist organization to facilitate money laundering linked to human trafficking activities in South America and Africa, according to a recent analysis by a security research group.

Ella Rosenberg, a senior research fellow at the Jerusalem Center for Security and Foreign Affairs, highlighted that the EU’s distinction between Hezbollah’s political and military wings has granted the Iran-backed group greater freedom in its fundraising operations. This division, she argued, enables the laundering of proceeds generated from human trafficking networks operating across Latin America, Africa, and the Middle East through front companies, charitable organizations, and trade networks within Europe.

While Hezbollah receives substantial military support and resources from Iran, Rosenberg noted that it also runs an established criminal network heavily dependent on human trafficking to finance its activities. Despite Lebanon criminalizing human trafficking in 2011 with Law 164, enforcement has often been compromised by corruption and Hezbollah’s political influence. Reports dating back to 2016 suggest that prostitution rings linked to Hezbollah-affiliated officials have operated with the group’s protection, which shields these illicit enterprises from state security intervention in exchange for an undisclosed share of profits.

The financial gains from such trafficking operations are reportedly funneled into Hezbollah’s social welfare services and to cover expenses related to members killed in conflict. Beyond Lebanon, Hezbollah’s logistical hubs have developed close ties with human trafficking networks. In Latin America, especially in Argentina, Brazil, and Paraguay, cartel members are alleged to have collaborated with Hezbollah operatives. Victims are often subjected to debt bondage and forced labor or criminal activities to repay exorbitant transit fees imposed by Hezbollah-connected facilitators. The group’s cooperation with violent drug cartels, including the Mexican syndicate Los Zetas, reportedly generates substantial illicit revenue that is laundered through trade-based schemes.

In West and Central Africa, Hezbollah maintains a significant financial presence by exploiting both the Lebanese diaspora and local populations. Rosenberg also pointed to the organization’s involvement in trafficking blood diamonds and narcotics throughout the region. Methods such as bulk cash smuggling and the use of real estate and vehicle transactions are employed to mask funds transfers to Beirut, circumventing international sanctions.

The scrutiny over Hezbollah’s funding sources intensified recently after reports emerged that Iran sent $200 million to support those displaced by fighting with Israel. While the U.S. State Department dismissed these reports as fabricated, Hezbollah later confirmed providing financial assistance of up to $14,000 for displaced families. Lebanese MP Fouad Makhzoumi expressed concern over the origins of these funds and their distribution outside official financial channels. He emphasized the need for Lebanon to assert full sovereignty over financial flows and armed forces to prevent the emergence of parallel systems operating beyond state control. “There can be no sovereignty for a state that does not monopolize arms or assert its authority over the movement of money,” Makhzoumi said, calling for consistent application of law across all sectors.