Reported by Naharnet Newsdesk

A top U.S. Treasury official visiting Beirut this week pressed Lebanese authorities to prevent funds from being funneled to Hamas by way of Lebanon, officials said.

Jesse Baker, deputy assistant secretary of the Treasury for Asia and the Middle East in the Office of Terrorist Financing and Financial Crimes, met with Lebanese politicians and officials from the financial sector Thursday and Friday.

A Treasury official who spoke on condition of anonymity to discuss sensitive matters said Baker had shared with Lebanese authorities “specific concerns” about “the movement of Hamas funds through Lebanon, Hezbollah funds from Iran into Lebanon and then out into other regional areas” and called for “proactive measures” to combat it.

Baker pushed for Lebanon to crack down on the large sector of illicit financial service companies that have flourished amid the collapse of the country’s formal banking system over four years of economic crisis, including illegal money exchange and unlicensed money transfer operations, the Treasury official said.

Those businesses — along with a cash economy that the World Bank has estimated amounts to nearly 46% of Lebanon’s GDP — have offered workarounds for people and groups barred from the formal financial system by U.S. sanctions.

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