situation report

Feb 25, 2019 | 18:49 GMT

1 min read

U.K.: London to Designate Hezbollah's Political Wing a Terrorist Organization

What Happened: The British government announced Feb. 25 that will designate Hezbollah's political wing a terrorist organization and ban it from operating in the United Kingdom after previously outlawing only the organization's military arm.

Why It Matters: The designation and subsequent ban will primarily affect Hezbollah's roughly $1 billion budget as the organization has been able to raise money in the United Kingdom through charities and the transfer of funds to Lebanon. The decision will also pressure other European countries, including the European Union, to follow suit and ban Hezbollah's political wing in an effort to target the group's cash flow.

Background: Charities and other informal funding sources represent a significant portion of Hezbollah's annual income and are intended to ensure the group's liquidity if Iran decides to cut its aid.

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