[ppi] [ppiindia] U.S. Freezes Assets Of Hezbollah Unit

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http://www.washingtonpost.com/wp-dyn/content/article/2006/08/29/AR2006082901286.html


U.S. Freezes Assets Of Hezbollah Unit
Donations to Militant Group Banned

By Glenn Kessler
Washington Post Staff Writer
Wednesday, August 30, 2006; Page A13 


The Bush administration moved yesterday against a key fundraising arm of 
Hezbollah, the militant Shiite Muslim movement that is part of Lebanon's 
government, ordering a freeze on its assets in the United States and making it 
illegal for Americans to contribute to the organization.

Hezbollah seized two Israeli solders last month, sparking a war between Israel 
and the organization that left large parts of southern Lebanon devastated. The 
United States regards Hezbollah as a terrorist organization, but the European 
Union has refused to join in that designation, in part because of the group's 
vast array of social services.

Yesterday's action against the Islamic Resistance Support Organization was 
intended in part to demonstrate the link between Hezbollah and terrorist 
activities. The Treasury Department released copies of a receipt issued by the 
group to a donor, which on the back listed projects such as "collection box 
project for the children and homes," "contribution to the cost of a rocket" and 
"contribution to the cost of bullets." The donor, whose name was redacted, used 
ink to signal his interest in helping fund a rocket.

During the conflict with Israel, Hezbollah launched about 4,000 rockets, 
killing more than three dozen civilians.

"Hezbollah projects an image as a humanitarian organization," said Stuart 
Levey, Treasury's undersecretary for terrorism and financial intelligence. 
"This puts the lie to that image. This shows there is no separation, and they 
raise money for social services and also raise money for terrorism."

The Intelligence and Terrorism Information Center, an Israeli Web site that 
tracks militant groups, last week posted brochures from the group, also known 
as the Islamic Resistance Support Association. The materials were obtained 
during the conflict in Lebanon.

One brochure depicted coins going into a mosque, similar to the Dome of the 
Rock in Jerusalem, and emerging as rockets aimed at a battered Star of David. 
The Web site said that the group primarily raises money from Shiite communities 
in the Persian Gulf but has also raised money in the Detroit area. 
Congressional testimony last year cited an unclassified Israeli intelligence 
report that said the group raised funds in Detroit.

Levey said the group also solicits funds through Hezbollah's al-Manar 
television station.

Since the war in Lebanon began, U.S. officials have tried to fashion ways to 
cut off Hezbollah's financing, which is central to its ability to build up its 
stockpile of weapons. Under a U.N. Security Council resolution passed this 
month that called for a halt to the conflict, Hezbollah is required to give up 
its weapons.

But Levey acknowledged that a financial crackdown on Hezbollah is more 
difficult than the Treasury's successful efforts to thwart North Korean 
counterfeiting and preventing financial aid for the Hamas-led Palestinian 
government. In part, that is because Hezbollah is part of the Lebanese 
government, not the government itself. The European refusal to designate 
Hezbollah as a terrorist organization has also been a problem.

"We believe that Hezbollah meets the definition of a terrorism organization, 
and we have long advocated that to our colleagues in Europe," Levey said.

Iran -- which Levey called the "central banker of terrorism" -- is regarded as 
the biggest financial backer of Hezbollah, providing an estimated $100 million 
a year. The Treasury Department has been coordinating an effort to find ways to 
cut off Iran's support for a host of militant groups, including Hezbollah and 
the Islamic Resistance Movement, as Hamas is formally known


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