Hezbollah

Hezbollah
 by Rise to Peace

Hezbollah’s Tentacles Threaten Latin America

Hezbollah, also known as Hizbullah, is a Lebanon-based Shia terrorist organization. Its creation dates back to 1982, after the Israeli intervention in Lebanon. Since its foundation, Hezbollah has participated in several terrorist attacks against civilians in the Middle East.

For instance, Hezbollah militants carried out the 1983 suicide truck bombings against the U.S embassy and Marine Barracks in Beirut, the 1985 hijacking of TWA Flight 847, the kidnappings of Israeli soldiers in 2006, and the assassination of former Lebanese Prime Minister Rafiq al-Hariri in 2005.

The Middle East is Hezbollah’s main geographical area of influence. Moreover, Hezbollah has participated in the Lebanese government since 1992, was involved in the Syrian Civil War through the use of militants to support the Bashar Al-Assad Regime, and is backed by Iran in its anti-Israeli and anti-Western activities.

However, Hezbollah’s activities and influence are not restricted to the Middle East.  Their presence has been reported in several areas throughout Latin America, and it is probable that Hezbollah’s tentacles will continue to spread in the southern zone of South America.

Historical Background of Hezbollah’s Presence in Latin America

Hezbollah’s presence in Latin America dates back to the group’s foundation. An essential factor in the establishment of Hezbollah cells was the flow of Lebanese migrants arriving at the Tri-Border Area (TBA) connecting Argentina, Brazil, and Paraguay during the 1960s and 1970s. The multi-generational diaspora and zones that facilitated trade for Lebanese migrants enabled Hezbollah militants to infiltrate the subcontinent and carry out their activities.

After Hezbollah was officially founded in 1982, Latin American cells began cooperating with Iranian personnel to commit terrorist attacks in Argentina. For instance, Hezbollah used a car bomb against the Israeli embassy in Buenos Aires, killing 23 people. Furthermore, Hezbollah allegedly participated in the terrorist attack against the Asociación Mutual Israelita Argentina (AMIA), a Jewish center in Buenos Aires, where 85 people died.

Venezuela, a Safe Haven for Hezbollah’s Criminal Activities

Once Hezbollah’s presence in the Tri-Border area was consolidated, this terrorist organization found a safe haven to carry out its illicit activities. When Hugo Chávez took power in 1999, a relationship began between the regime and Hezbollah, allowing Hezbollah to build a vast network to carry out illicit activities, such as drug trafficking, money laundering, and smuggling.

In fact, Hezbollah established a crime structure in Venezuela that operates through compartmentalized, familial clans, such as Nassereddine, Saleh y Rada, that embed into the regime-controlled illicit economy and the regime’s political apparatus and bureaucracy. Hezbollah has control in zones such as Margarita Island, where they operate freely.

The advantage for Hezbollah operating in an area with so many facilities and where the current government is a close ally is that the terrorist group receives billions of dollars annually, mainly from drug and arms trafficking. However, Hezbollah’s main source of income is the funding it receives from Iran, which is also a close strategic ally of Venezuela.

Hezbollah’s Presence in Other Latin American Countries

Hezbollah has a strong presence in the countries comprising the Tri-Border Area. Activities such as counterfeiting and drug trafficking have been identified in Puerto Iguazú, Foz do Iguaçu, and Ciudad del Este in Argentina, Brazil, and Paraguay.  The authorities found that Sobhi Mahmoud Fayad, a Hezbollah militant from this zone, has sent more than $50 million to Hezbollah since 1995.

Hezbollah’s activities and presence have also been identified in Colombia.  The Colombian Intelligence Services has detected enterprises and commercial platforms that operate as money laundering centers. Furthermore, counterfeiting networks were identified in Cartagena, Barranquilla, and Maicao.

In addition, Hezbollah and the Revolutionary Armed Forces of Colombia (FARC) converged to cooperate with crimes such as drug trafficking, which is the most profitable source of funding for both groups. The FARC specialized in cocaine trafficking and production, while Hezbollah specialized in money laundering, thus creating a nexus between crime and terrorism.

Finally, Hezbollah is establishing itself in an area known as the New Tri-Border Area, which is comprised of northern Chile (Arica and Iquique), southern Peru (Tacna and Puno), and Bolivia (from El Alto to the Iranian Embassy in La Paz).

In Chile, Hezbollah seeks to take advantage of its ports and indoctrinate young people to join its cause. In Bolivia, Hezbollah seeks to increase its presence by taking advantage of its poor diplomatic relations with the United States. Finally, in Peru, Hezbollah seeks to profit from cocaine production, again facilitating the crime-terror nexus.

What Should be Done?

Hezbollah’s presence in Latin America illustrates how the region’s crime-terror nexus is a significant security threat. Factors such as little state control in border areas, strategic routes to traffic weapons and drugs, money laundering, and support from regimes, such as Iran and Venezuela, have allowed Hezbollah to transform into a wealthy terrorist organization with a considerable presence in Latin America.

In order to reduce the power and influence of Hezbollah in the region, the United States has implemented financial sanctions against the group. However, sanctions are not enough to reduce the activities and income of this organization.

Thus, it is necessary to improve cooperation among Latin American countries, implement more effective legal instruments against money laundering and terrorist financing, increase security in the Tri-Border Area, and continue efforts to cut off Hezbollah’s tentacles in Latin America.

 

Daniel Felipe Ruiz Rozo, Counter-Terrorism Research Fellow

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 by Cameron Hoffman

Civil Society Organizations as a Possible Structure for Recovery in Lebanon

Before the COVID-19 pandemic, Lebanon experienced massive protests calling for a new government in response to declining economic opportunities amongst other issues. While lockdown measures have put these protests on pause, the core grievances remain. Its survival hinges on the ability of the government to address its citizens’ concerns.

However, the disconnect between the government and Civil Society Organizations (CSOs) that work to combat local issues and aid development puts the Lebanese government at a disadvantage.  To prevent Lebanon from collapsing and adding to the instability of the region a framework built on the cooperation of these two groups to create meaningful policy change must be established.

Lebanon has a long and large history when it comes to CSOs. CSOs in Lebanon are defined as organizations working to promote intra-sectarian cooperation, civic participation, and inclusion in the governance and political order in Lebanon. As of 2015, there were 1.3 CSOs for every 1000 people in Lebanon. Official records indicate that there are 8,311 registered organizations and many more loosely organized groups.  But while the number of CSOs is numerous, the effectiveness of CSOs is extremely limited is due to Lebanon’s political structure and the weak organizational capacity of CSOs.

CSOs are currently largely locked out of the policy creation process because of the Lebanese government’s structure of sectarianism.  This structure breeds tribalism and voting based on sect rather than allegiance to effective governance. Additionally, policymakers are uninterested in working with CSOs, and largely ignore the local issues for pandering to the sect of their constituents and engaging in party politics.

The internal organizational capacity of CSO’s are limited in two major ways. The first, is that accurate information on the group’s functions, membership, and influence is largely unavailable, which makes it difficult for donors to contribute. In fact, over 60% of Lebanese CSOs suffer from a lack of financial resources. The lack of resources leads to the inability to maintain full-time staff, operate offices, and other essential functions or successful organizations. The second is that over 41% of CSOs in Lebanon have problems maintaining volunteers. This makes larger community projects unachievable and limits the effectiveness of the CSO, but also its ability to influence policy through citizen pressure on policymakers.

To increase their effectiveness CSOs need to develop reliable information management, create robust strategic plans, keep volunteers engaged, and lastly, develop a relationship with the media. However, unless the government makes changes to cooperate with CSOs the changes CSOs need to make will not greatly increase their effectiveness.

The current “lockout” of CSOs from the policy making process is extremely harmful to maintaining Lebanon’s stability as it approaches a socio-economic collapse. If the crisis of a failed state is to be averted the government needs to include the CSOs to address the local issues that contribute to the larger grievances like the public health crisis (water pollution and poor healthcare) and economic fatigue (18% youth unemployment, low job creation, low wages, mismatch of the job market demands and skills earned in the education sector).

The risk of collapse is predicated on the elites of Lebanon exploiting the relatively liberal political atmosphere and absence of a welfare state to create informal dependency networks that preserve the status-quo.  The lack of cooperation between the government and CSOs allows extremist groups and parties like Hezbollah to use the same strategy to create their own dependency networks that supports the survival of these organizations and adds to the already heightened fragmentation without contributing to the overall well-being of citizens.

A lockout of CSOs from the policy process not only threatens the stability of the region, but will also lockout the inhabitants of Lebanon from experiencing real, and needed, change. Not only does the current Lebanese government need to learn and adapt, but the current situation provides a framework for other states in the region to learn a valuable lesson — failing to include CSOs in the policy making process may preserve the status-quo temporarily, but that it leads to a failure in good governance and eventually political upheaval.

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 by Cameron Hoffman

Do Cryptocurrencies Provide Opportunities for Terrorist Organizations?

Bitcoin and other cryptocurrencies were once considered as fantasy rather than a viable method of exchanging goods and services, but today many companies — even countries like Saudi Arabia — have adopted forms of cryptocurrency. Even average citizens have embraced the use of Bitcoin in everyday transactions.

In Lebanon, where COVID-19 has exacerbated the economic crisis and caused drastic inflation, there has been a demand for cryptocurrency as a stable alternative to the Lebanese pound and a possible means to avoid government defaults. The Lebanese government has no regulatory laws regarding cryptocurrency, but has issued warnings against its use — the Lebanese Central Bank advocates for its use to be illegal. However, independent crypto-traders estimate the Lebanese population trades between one to five million USD a month using cryptocurrency.

As the utility of cryptocurrencies rise in countries like Lebanon, Hizballah and other terrorist organizations may adopt its use. Additionally, cryptocurrencies are coming under scrutiny lately for their perceived anonymity and how terrorist organizations could exploit the features of digital currency to bypass sanctions and current counter-terrorism finance initiatives. But what are the threats of cryptocurrency to counter-terrorism efforts, is there evidence of their use, and do they provide real utility over traditional finance methods to terrorist organizations?

Cryptocurrency offers terrorist organizations a possible route for anonymous, secure, and reliable streams of funding. They offer anonymity that hackers have used for years as a part of ransomware cyberattacks, as sending, receiving and converting money to Bitcoin does not require the use of a legal name or address. This feature, in combination with a virtual private network (VPN) to hide the user’s true Internet Protocol (IP) address, gives hackers and others anonymity in accessing funds that are not routed through banks.

Cryptocurrency, especially bitcoin, provides security of transfer through encryption and blockchain technologies that drastically limit the potential for hackers to steal funds or the recipients information. While reliability would depend on the donors to terrorist organizations, the characteristics of cryptocurrency provide some incentives to those donors.

The benefits are also incentivizing states to invest in cryptocurrency. Iran, facing economic pressure from US sanctions, has seen a surge in bitcoin popularity — much like Lebanon. While bitcoin is technically illegal in Iran the state is reassessing the ruling and is likely to change. Additionally, Iran is currently planning for the creation of a national Iranian cryptocurrency to bypass US sanctions and embargos.

Yet with all the positive aspects of cryptocurrencies, the evidence suggests that terrorist organizations are not using them on a large scale. Hamas uses some bitcoin but it uses far less cryptocurrency than the average for the civilian population of Gaza. And while Randa Slim (the Lebanese-American director of diplomacy programs for the Middle East institute) thinks that Hizballah has the most to gain from adopting bitcoin usage, there is no evidence to suggest they have begun using it.

The RAND Corporation has examined why non-state actors have not emphatically embraced cryptocurrencies, but subsequently issued a warning for future developments. RAND agrees that while there is an increasing need to understand the full potential of cryptocurrency exploitation by terrorist organizations, that concerns over the abilities of cryptocurrencies to enable terrorist organizations, have yet to materialize. This is because cryptocurrency does not yet provide additional benefit to the areas where terrorist organizations place the most importance in procuring funds than their traditional methods.

The table below (sourced from the RAND report) shows the levels of importance for the most common aspects of terrorist finance, of which security is of the most importance. While cryptocurrencies like Bitcoin are relatively secure, RAND posits that current cryptocurrency options do not currently provide the security that these highly scrutinized organizations need. However, future improvements to bitcoin could make it appealing to terror organizations for the select use of fundraising.

Source: Rand Corporation

As the economy evolves, and includes continually improving cryptocurrencies, so does the potential for terrorists to adopt the technology. Technological advancement cannot be prevented, but policy that creates regulation and oversight of cryptocurrencies with international cooperation of the intelligence community and law enforcement agencies are crucial steps towards preventing cryptocurrencies from enabling terrorist organizations.

– Cameron Hoffman

  • Clarification: According to Bitcoin vocabulary, it is acceptable to use an uppercase B when discussing the concept or network and a lowercase b to describe a unit of account. This is relevant to the textual differences in the above analysis.
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 by Vasileia Kioutsouki

Drone Technology and Its Malicious Use by Terrorists

Emerging technologies may offer recognised benefits, but they pose threats to national security also. A case in point are unmanned aerial vehicles (UAVs) — one of the most common examples of dual-use technology.

Drone technology refers to a pilotless aircraft whose operation is based on a combination of technologies, such as artificial intelligence and computer vision. Although initially developed for military purposes, drones now receive wider attention and use.

Over the past few years, UAVs have been used by various businesses, including refining companies, online marketplaces, broadcasting services, airlines, construction and logistic companies in addition to governmental and defense organisations. Therefore, from timely delivery at peak time and geographical mapping of inaccessible regions to border control surveillance and supervision of unreachable military bases, drones are proving to be highly beneficial for a broad range of sectors.

However, alongside the aforementioned businesses and governmental organizations, drone technology has had a beneficial effect on terrorism as well. More specifically, newly affordable prices and growth in popularity have attracted the attention of a number of terrorist organisations, including Hezbollah and the Islamic State of Iraq and the Levant (ISIL).

Hezbollah has paved the way for the extensive use of drones by non-state groups. Indeed, the Lebanese militant group is reported to have the longest-standing and most advanced drone program of any non-state actor. It is believed that most of its drone fleet was supplied by Iran which has been developing its drone program since its war with Iraq.

Over the past decade, Hezbollah has made a great deal of progress in the acquisition of highly sophisticated UAVs. They have exploited them to gain useful intelligence and to intercept poorly encrypted Israeli drone feeds. Consequently, the Hezbollah drone program poses a constantly growing threat not only to Israeli security, but also to other non-state combatants.

Similarly, the Islamic State’s use of drones is developed to the extent that it can be described as a ‘drone program’. However, ISIL differs from other terrorist groups in that it has exploited drone technology in a more creative manner. Focusing more on acquiring simple, cost-effective and replaceable devices, they managed to build their own drone fleet.

Another point that sets apart the Islamic State’s drone program is the emphasis put on drone imagery. Rather than just weaponizing drones to conduct an attack, ISIL has strategically used the ability to capture aerial photos that later become central components of its propaganda machine.

In the light of the significant and rising threat posed by the possession and malicious use of drones by non-state actors, several companies were prompted to come up with technologies able to bring them down. These include electronic fences which block drone signals and drones equipped with nets which can capture enemy drones. However, additional measures should be implemented in order to prevent terrorist groups from having access to such technologies.

It is clear that alongside the tremendous benefits, drone technology also involves a direct threat to national security. Although they were first developed for military purposes, the ever-increasing commercial use of drones has also enabled terrorist groups, such as ISIL and Hezbollah, to acquire or even to manufacture their own drone fleets.

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 by Elisabeta Dinu

From Violence to Politics: Will the Taliban Become a Political Party?

The Taliban has rejected engaging in negotiations many times, but President Ghani’s proposal to fully recognize the group as a legal political party in 2018 was a turning point. Terrorist organizations change and many have proven to have the ability to engage in politics. Organizations like Hezbollah or the Irish Republican Army (IRA) changed strategy and came to prioritize politics over violence for advancing their agenda. Perhaps the Taliban too is showing signs of transforming into a political party?

Tapping into politics does not necessarily mean letting go of violence. Estimated to have around 60,000 full-time fighters, the Taliban’s territorial reach does not show signs of pull back. They retain the ability to conduct high-profile urban attacks, demonstrate considerable tactical capabilities, and their attacks have become more effective in the third quarter of 2019.

As security expert Audrey Kurth Cronin points out, many groups that engaged in politics have maintained violent activities. Hezbollah became a fully-fledged political party shortly after the signing of the Ta’if peace agreement in 1989, but like the Taliban showed no signs of slowing down militarily.  Although it has been running in elections since 1992 and has become one of the most important players in the parliament, Hezbollah has not disarmed like other militias in Lebanon. Similarly, the Taliban are unlikely to commit fully to politics.

Perhaps becoming political could be a means to an end. Conflict negotiations are built on the assumption that parties want the conflict to end. However, in the case of the Taliban this is not clear. United States officials assess that the Taliban does not pose an existential threat to the Afghan government at the moment, but signal that the dynamic can change if the US alters its deployments in Afghanistan.

Negotiations could be a vehicle for the Taliban to force US troops out of Afghanistan, so they could defeat the government and other local rivals in order to reinstate the Islamic Emirate by force. Similarly, Hezbollah’s military capacity competes with that of the government of Lebanon, and both analysts and governments have argued the group’s political activity has only been means to their continuous anti-Israel terror campaign.

Engagement in politics could also feature Taliban radical splinters, which may carry on the terrorist campaign. The Taliban may not be a very fragmented organization under the leadership of Haibatullah Akhundzada, but disagreements within the group could occur if the Taliban and the Afghan government strike a deal. Radical factions could be dissatisfied with concessions made during negotiations and carry on terrorist attacks despite opposition from Taliban leadership.

The IRA is such a case – when the Anglo-Irish treaty of 1921 granted the formation of an Irish Free State, the organization split. The pro-treaty faction grew into the army of the Irish Free State. The anti-treaty faction – under the leadership of Eamon de Valera — carried on the terrorist campaign. Although until the Good Friday Agreement of 1996 the IRA featured multiple radical splinters that carried on terrorist attacks, the factions also engaged in politics, some growing into the most important political parties in Ireland (such as Fianna Fail and Sinn Fein).

Whether the Taliban transforms into a political party is also a regional bid. The creation of the Taliban was catalyzed by Pakistani influence.  Numerous reports have indicated that Pakistan’s Inter-Services Intelligence agency was involved in the creation of the Taliban, and still supports the insurgency as a matter of official policy to contain the influence in Afghanistan of its rival India.  Similarly, Hezbollah surfaced when Iranian Revolutionary Guard Corps arrived in Lebanon to provide support for pro-Iranian Shiite militias against Israel, and the political party has been depicted as an outpost of Iranian influence.

Several lessons can be drawn from the experience of the Hezbollah and the IRA’s changeover to politics.

  • A comprehensive strategy for the disarmament, demobilization and reintegration of the Taliban should be formulated. Although the Ta’if agreement called for the disarmament of all militias in Lebanon, and so did several United Nations Security Council Resolutions, Hezbollah expanded its military power and did not show signs of integrating into the Lebanese Armed Forces.
  • A plan for moderating Taliban aims for Islamist government is necessary, as they will most likely seek reinstating Islamist rule in Afghanistan. In comparison, Hezbollah’s engagement in politics has been granted by the group’s receptiveness to political pluralism – “we are committed to Islam but unwilling to impose it by force”.
  • Any deals should contain areas of deliberate strategic ambiguity to minimize Taliban factionalization. The Good Friday Agreement was ambiguous enough to enable participants to describe the accord in terms that were palatable to their constituents, and so should be any agreement between domestic parties in Afghanistan.
  • The role of third-party states is crucial. In Lebanon, success and failure of conflict regulation depends on the maintenance of positive exogenous pressures, and Syrian and Iranian interests affected the trajectory of Hezbollah. Similarly, the interests of Pakistan must be considered as a key element of any potential Taliban engagement in politics.
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