U.S. sanctions imposed this month have shed light on the role Turkey plays in moving money from Iran to Hezbollah.
Where once the Assad government in Syria provided a dependable link between the two, its collapse has forced a more dispersed network that relies on cash, couriers, commercial flights and cryptocurrencies.
The Treasury Department on Aug. 20 designated 10 people as part of a network it said moves hundreds of millions of dollars between Lebanon, Turkey, the United Arab Emirates and Iran. The network enables Hezbollah to obtain foreign currency outside the formal financial system to keep its operations funded despite U.S. sanctions, according to the Treasury.
Washington alleges at the center of the network is Turkish businessman Younes Alper Yilmaz. According to the Treasury, Yilmaz uses exchange offices, which process high volumes of currency exchanges and remittances, companies and bank accounts to transfer money linked to the Islamic Revolutionary Guard Corps’ Quds Force, which Washington designates as a terrorist organization.
Other members of the network collect the money, arrange its movement or carry cash to Lebanon. The U.S. is not alleging that Turkey’s government plays a role in the transfers.
The system appears to rely less on a single route than on a series of interchangeable links, allowing one part of the network to be replaced when necessary.
Lebanese economic expert, Khaled Abu Shakra told MBN that Iran and entities linked to it cannot rely on official channels to transfer money because of sanctions. That pushes them toward alternatives such as cash and digital currencies, he said.
On Feb. 28, 2025, Lebanese authorities seized $2.5 million in cash from a passenger who had arrived from Turkey. Sources told Reuters that it was headed to Hezbollah. Lebanon’s Finance Ministry confirmed the seizure but did not disclose the destination of the money.
The incident followed an Israeli complaint to the cease-fire monitoring committee, a U.S. led group overseeing the 2024 agreement between Israel and Hezbollah, several weeks earlier over allegations that money was being brought into Lebanon by air. The Wall Street Journal reported that Israel had alleged that Iranian diplomats and Turkish citizens were carrying money into Beirut for the Iranian aligned group.
Lebanese authorities have barred Iranian aircraft from landing in Beirut after Israel accused Tehran of using civilian flights to transfer money to Hezbollah. That action followed a Jan. 2, 2025, dispute at the Beirut airport over the inspection of two bags belonging to an Iranian diplomat who had arrived from Tehran. The Iranian Embassy later said the bags contained money and documents intended for the embassy.
The suspension of Iranian flights to Beirut necessitated the need for new routes and means. Instead of a direct flights between Iran and Lebanon, the movement of money now is alleged to be delivered via multiple countries and individuals.
The latest U.S. sanctions target the people who are allegedly involved in these efforts.
Why Turkey?
Turkey has several characteristics that make it attractive as a transit point for financial networks. These include its proximity to Iran and Lebanon, extensive air links and regional trade, as well as its large economy and the large number of people who fly through and from the country.
Hisham al-Najjar, a researcher specializing in Islamic political movements, counterterrorism and Middle Eastern geopolitical affairs., said these characteristics help explain Turkey’s emergence as a financial transit point.
He told MBN that the latest sanctions demonstrated how exchange companies, front entities and cash couriers can be used to keep money outside banking channels subject to scrutiny.
The presence of a financial network in Turkey, however, does not necessarily mean the Turkish government sponsors it, said Turkish political researcher Hisham Gunay.
He noted that Turkish authorities previously arrested several people involved in an organization known as Tawhid Salam, allegedly an Iranian-linked terrorist network that included Turkish and Iranian businessmen.
Ankara has also been at odds with Hezbollah since the Syrian war, when the Lebanese group fought alongside Assad’s government. Turkey supported the dissident groups fighting Assad.
The Point of Arrival
Moving cash outside of formal channels has become more difficult, “although that does not mean this method has disappeared,” Abu Shakra said.
In July 2025, Lebanon’s central bank introduced measures aimed blocking unlicensed entities subject to foreign sanctions.
The purchase of dollars from the market has also been restricted to Banque du Liban, Lebanon’s central bank, under stricter anti-money laundering standards. Previously, such transactions were carried out through several money-transfer and exchange companies.
A major vulnerability remains Lebanon’s cash-based economy. Abu Shakra estimates that cash accounts for between 50% and 60% of transactions in Lebanon, increasing the risk of money laundering.
But cash is not the only alternative. Abu Shakra told MBN that the use of digital currencies, particularly USDT, a stablecoin pegged to the U.S. dollar, has increased in recent years.
That has prompted U.S. authorities to extend enforcement efforts to digital assets and cryptocurrency wallets. Freezing a wallet on a blockchain prevents the funds in it from being used once its connection to a targeted network has been established. But new wallets can still be created.
Another problem spot is northern Cyprus, where the prevalence of gambling clubs allows cash to be converted into digital assets without stringent customer-identification procedures, Abu Shakra said.
That helps explain the evolution of U.S. sanctions from targeting recipients of money to targeting the infrastructure that allows funds to move and be used. The measures include freezing assets connected to the U.S. financial system, prohibiting transactions with designated individuals and entities, and exposing money changers, intermediaries and front companies to significant financial and legal risks.
As the traditional Syrian route for money transfers has declined a far more diffuse network has taken its place. There is no single “Turkish route,” but rather a broad restructuring of Hezbollah’s financing networks that rely on multiple sources and access points.
It remains to be seen whether the latest U.S. sanctions can significantly reduce the flow of cash to the terrorist-designated group. Hezbollah’s leaders, however, have repeatedly proven adept at circumventing efforts to cut them off from Iran.
Adapted and translated from the original Arabic.
