The Lebanese have been cautiously monitoring the repercussions of new US sanctions against Iran and Hezbollah, which have recently targeted the narrow circle of the party’s leadership, including Jawad Nasrallah, the son of Hezbollah Secretary General Hassan Nasrallah.
Analysts voiced concern over the state’s ability to limit the impact of the sanctions on the country’s ailing economic and monetary situation, in the absence of a balanced government capable of addressing the US administration and the international community to spare state institutions and the banking sector any harmful repercussions.
It is true that the current measures adopted by the banks meet the requirements of the previous sanctions, but the new US decisions demand a different approach according to banking sources.
“Banks are now keeping up with international standards in all fields, in terms of monitoring deposits, transfers, and information related to the Iranian regime, persons close to Hezbollah, or in terms of the implementation of money laundering and counterterrorism laws,” the banking sources told Asharq Al-Awsat, but added that the banks would strictly apply any new directions or circulars issued by Lebanon’s Central Bank (BDL).
Attempts to alleviate the repercussions of the US sanctions seem to be closely linked to the stability of the political situation in Lebanon, according to researcher on strategic affairs Dr. Riad Qahwaji.
“US sanctions on Iran and [Hezbollah] are applied in a progressive way, and within multiple laws, but with one goal,” Qahwaji said, adding: “The US administration is maintaining the policy of drying up the financial resources of [Hezbollah] and Iran - the main financier of the party - and other organizations listed by Washington on its terrorism list.”
“The sanctions have entered an upward spiral, and every day we will see new procedures and new names that are on the list, and their effects are expected to start with Iran over time, not within a day or two,” he noted, warning that Lebanon would be harmed by these sanctions, “as long as there is no balanced government headed by Saad Hariri, who is solely capable of easing the sanctions on Lebanon and reducing the risk of economic collapse.”
However, a parliamentary source who participated in the meetings held by a Lebanese parliamentary delegation with US administration officials, in order to spare the banking sector the repercussions of the sanctions on Hezbollah, said in a statement to Asharq Al-Awsat that the recent sanctions against leaders in the party were the beginning of more escalatory steps.
Speaking on condition of anonymity, the sources said they did not believe that the formation of a government would reduce the impact of sanctions.
“The formation of the government might lead to a counter-US reaction, especially if Hezbollah was given key portfolios such as the Ministry of Health, which would increase the burden on the government,” they noted.
For his part, economic and financial expert Dr. Ghazi Wazneh, said the new sanctions targeted individuals belonging to Hezbollah or close to the party, but he stressed that sanctions would become more painful, if they impacted educational, health and social institutions affiliated to the party, because it would affect the staff and those benefiting from the services.
