U.S. Treasury Secretary Scott Bessent met with Lebanese Prime Minister Nawaf Salam on Monday, urging the cabinet to take firm steps to dismantle financial channels linked to Iran and Hezbollah. The discussion focused on the perceived threat that Iranian-backed money movements pose to Lebanon’s already fragile economy.
Bessent emphasized that curbing these networks is essential for Lebanon to regain credibility in its banking sector. He highlighted that comprehensive reforms in the financial system are required to restore public confidence and attract needed foreign investment.
The Treasury official underscored that Lebanon’s banking crisis, which has left large segments of the population without access to basic services, cannot be resolved without addressing illicit financing. He suggested that coordinated action with international partners would be necessary to disrupt the flow of funds that support militant activities.
Lebanese authorities have previously pledged to strengthen anti‑money‑laundering measures, but progress has been slow. Bessent’s remarks signal heightened U.S. scrutiny of the country’s financial oversight mechanisms and a push for more decisive policy implementation.
The meeting also touched on broader economic reforms, including the need for greater transparency in public finances and the restructuring of state debt. While specific policy steps were not detailed, the Treasury secretary’s comments indicate that the United States expects tangible results in the near term.
Analysts note that Lebanon’s ability to act on these recommendations will be tested by its political fragmentation and the entrenched influence of Hezbollah within the state apparatus. The outcome of this diplomatic engagement could shape future U.S. assistance and investment decisions in the region.
Reporting attribution: based on reporting by Middle East Eye — original source: https://www.middleeasteye.net/live-blog/live-blog-update/us-treasury-secretary-calls-lebanon-take-decisive-action-against-iranian.