Reported by Dov Lieber, Omar Abdel-Baqui, and Summer Said

(Excerpt shared below. To read full report, go to: https://www.msn.com/en-us/news/world/iranian-funds-for-hezbollah-are-flowing-through-dubai/ar-AA1RhOsg)

Iran has sent the Lebanese militia Hezbollah hundreds of millions of dollars over the past year via money exchanges and other businesses in Dubai, as Tehran seeks new ways to funnel money to its ally, people familiar with the matter said.

Hezbollah, a U.S.-designated terrorist group, is in desperate need of funds to rebuild and rearm its militia and pay other costs stemming from its bruising fight with Israel last year, the people said. Its smuggling routes through Syria were disrupted by the fall of the Iran-aligned Assad regime a year ago, and Lebanese authorities have made strides cracking down on couriers bringing suitcases of cash through the Beirut airport.

The limitations of those routes have forced Iran and Hezbollah to lean more heavily on alternatives like Dubai, the United Arab Emirates’ increasingly important global financial entrepot that Tehran has long used to launder funds and evade sanctions, said the people familiar with the matter, who include a senior U.S. official.

Earnings derived from oil sales are sent to Iran-linked exchange shops, private companies, businessmen and couriers in Dubai, who move them to Hezbollah in Lebanon via the Hawala method, a centuries-old system that allows users to transfer money from one point to another entirely on the basis of trust, the people said. Funds are deposited with a dealer in Dubai and paid out by a dealer in Lebanon, with the two dealers netting out or otherwise settling accounts later.

A U.A.E. official said the country is committed to preventing misuse of its territory for illicit finance and was working with international partners to disrupt and deter it.Spokesmen for Hezbollah and the Lebanese prime minister’s office didn’t respond to requests for comment. Iran’s mission at the United Nations didn’t respond to a request for comment.