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The investigation reveals the global networks of the Shiite Islamist organization, which is also active in Austria.

The new publication by the Documentation Center Political Islam (DPI) was produced under the direction of Lina Khatib, Associate Fellow at Chatham House (The Royal Institute of International Affairs, London, UK). The study analyzes the extensive financial networks of the religious extremist group Hezbollah in Europe. The work was also supported by Anrike Visser, an expert on financial crime and terrorist financing. The analysis reveals both connections to globally active companies and the interweaving of legal and illegal business models. It draws on publicly available sources, including court records, corporate registries, and government reports.

The Islamic Republic of Iran and its allies have increasingly come under scrutiny in recent years due to their direct or indirect involvement in military conflicts in the Middle East. The Shiite Islamist Hezbollah, which originated in Lebanon and was long considered the strongest non-state armed militia in the world, plays a significant role in these armed conflicts. As an ally of the Iranian-backed “Axis of Resistance,” it was already involved in the war in Israel and Gaza triggered by the Hamas terrorist attack on October 7, 2023. Hezbollah has since been severely weakened militarily and politically, but it has managed to maintain its transnational networks in the Middle East, Latin America, Africa, and Europe. Among other things, the organization is implicated in the trafficking of drugs, works of art, and blood diamonds, as well as in oil smuggling and money laundering.

EU member states are divided over whether to designate Hezbollah as a terrorist organization

Hezbollah’s business activities in the European Union (EU) are largely determined by its legal status in individual member states. In Germany, Switzerland, and the Netherlands, the entire organization is now designated as a terrorist organization. In most EU countries, however—including Austria—only the military wing is classified as terrorist. This allows the political wing—despite its close ties to the rest of the organization—to conduct business legally in numerous European countries, such as collecting donations through charitable or religious organizations. According to reports from the U.S. government, approximately one-third of Hezbollah’s funding comes from criminal activities worldwide, with Europe playing a significant role. 

In many of its operations, Hezbollah cooperates closely with the Iranian Islamic Revolutionary Guard Corps, which the EU has designated as a terrorist organization since early 2026. Due to the unstable situation in Lebanon and, in particular, the war with Iran that began in late February 2026, international networks and financial structures have now taken on even greater significance. One aspect that is not insignificant in this context: Hezbollah’s financial transactions are increasingly conducted via cryptocurrencies in order to carry out transactions more anonymously and quickly.

“For Hezbollah, Europe serves as a key hub for a wide range of business activities, as evidenced by the extensive and ramified structures it has established. The broad network of companies, their connections, and the fact that Hezbollah has not been formally designated as a terrorist organization enable it to legally collect donations and conduct financial transactions within the EU. Cooperation with criminal networks beyond European borders—such as with drug cartels—also highlights the global dimension of Hezbollah’s financing. The study makes it clear that, in addition to a unified legal position by the EU on this issue, there is a need for more—and above all, more consistent—cooperation at the international level,” says author and Middle East expert Lina Khatib.

Hezbollah Activities in Austria

The analysis also examined operations in Austria attributed to Hezbollah. One example is the case of a Hezbollah commander who was sentenced to several years in prison in Klagenfurt in 2020 and 2021 after being found guilty of being a member of a terrorist organization. The court found it proven that the Lebanese citizen had been a member of Hezbollah since 2006, recruited approximately 250 young people and men for the group, and was also involved in ideological and military training. In addition, he had also been involved in financing the organization in Austria for many years. In March 2023, the Federal Administrative Court dismissed his appeal against the revocation of his asylum status.

Another case study concerns the successful dismantling of a smuggling network by Austrian authorities. The criminal group smuggled large quantities of Captagon and cocaine into Saudi Arabia undetected. The drugs, manufactured in Lebanon, were hidden in appliances such as pizza ovens or washing machines and smuggled via Belgium and Austria to various port cities in Italy. A pizzeria in a town near Salzburg served as a cover in this case. The route was chosen because goods from Europe are generally subject to less stringent controls in Saudi Arabia. The drug ring centered around the former pizzeria was dismantled in 2021 as part of “Operation El Capta,” and several individuals involved were convicted by the Salzburg Regional Court. As the study makes clear, in addition to trafficking Captagon in the Middle East, Hezbollah is also involved in the international cocaine trade, whose route runs from Latin America through West Africa to Europe.

Insights into the extensive financing network                                    

The DPI publication describes how the extremist organization’s global networks interact, how its legal and illegal business practices are intertwined, and how it skillfully exploits loopholes in the European legal system. Using selected case studies, the report highlights key patterns in Hezbollah’s financial transactions and identifies the resulting political challenges. In doing so, the study makes a substantial contribution to the development of effective measures against the financing of Hezbollah in Europe. This includes a clear graphic illustrating Hezbollah’s financing network in Europe.

The Financial Operations of Hezbollah in Europe