Episode Overview

Podcast: Ask Haviv Anything
Episode: 83 – From ideology to narcotics, Hezbollah's business model, with Matt Levitt
Date: January 26, 2026
Host: Haviv Rettig Gur
Guest: Dr. Matthew Levitt (Washington Institute for Near East Policy, host of "Breaking Hezbollah's Golden Rule")

This episode explores Hezbollah’s complex evolution from an ideological and political movement to an international criminal organization, focusing on its global narcotics and money-laundering enterprise. With Dr. Matt Levitt, a leading expert on Hezbollah and counterterrorism, Haviv Rettig Gur discusses how Hezbollah leverages global Lebanese diaspora networks, financial crises, and its relationship with Iran to sustain its activities, especially in Latin America and Africa. The conversation covers how recent wars and geopolitical shifts have forced Hezbollah to increasingly rely on illicit funding sources, and what can be done to limit its influence.

Key Discussion Points and Insights

1. Breaking Hezbollah’s "Golden Rule" (03:43–05:34)

• Hezbollah's Golden Rule: “The less you know, the better” – a principle meant to keep terrorist and criminal operations secret, even within the organization.
  • Levitt: "Hezbollah wants you to know about their political activities ... but there's a whole lot of activity, terrorist activity, international criminal activity ... [that] they don't want you to know the details about." (04:39)
• Levitt’s podcast seeks to expose these hidden elements by interviewing those directly involved in investigating or prosecuting Hezbollah’s global operations.

2. Hezbollah’s Surprising Role in the Narcotics Trade (05:34–12:28)

• Public Perception vs Reality: While Hezbollah presents itself as a pious, ideological group, it is deeply involved in the global drug trade—including heroin, opium, and hashish from Lebanon’s Beqa Valley.
• Expansion into Latin America: Initially low-level, Hezbollah’s narcotics trade greatly escalated, with coercion and integration into existing Lebanese diaspora communities, particularly in South America.
  • Levitt: "Within those [Lebanese] communities, there were some people who got into the narcotics trade and that developed over time ... they kept stumbling over Hezbollah cases." (06:24–08:31)
• Money Laundering: U.S. DEA cracked the case by following the money, uncovering relationships with major cartels and the emergence of so-called "super facilitators."
• Fatwa of Impurity: An Iranian religious decree reportedly allowed engagement in the drug trade on the pretext of harming the enemy and supporting the cause (11:06–12:28).

3. How Hezbollah Built its Criminal Empire (12:28–20:32)

• Diaspora Networks: Diaspora communities in South America and Africa formed the backbone for Hezbollah's logistics, fundraising, and operational support.
• Importance of Free Trade Zones: Key transit points—like the tri-border area (Argentina, Brazil, Paraguay), Macau, Colombia, and Margarita Island, Venezuela—enable illicit activities.
• Financial Diversification: After periods of reduced Iranian funding (e.g., post-2009 sanctions), Hezbollah doubled down on criminal enterprises, especially money laundering and arms smuggling.
  • Levitt: "When Hezbollah has faced financial crises ... they really realized they need to diversify their portfolio ... doubled and tripled down on illicit crime." (08:38–11:06)
• Integration with Cartels: Established trust through individual connections and unique capabilities (e.g., moving goods via unique routes, laundering money via bank ownership). "For the cartel, it's not ideological at all. It's just business. For Hezbollah ... this portion of it is also business." (16:35–20:32)

4. Hezbollah After October 7 and Recent Wars (20:32–27:57)

• Impact of Israeli and Iranian Conflicts: Hezbollah’s infrastructure and leadership have been decimated since the 2024 Israeli strikes and Iran’s own setbacks.
  • "Their networks abroad have not been targeted. Suddenly their foreign networks ... become a little more important because they're there and they're functioning." (21:40)
• Financial Pressures: Iranian funding continues but is less timely and harder to move. Hezbollah turns even more to overseas illicit income.
• Venezuela Uncertainty: Despite leadership changes, Hezbollah’s assets and connections in Venezuela have not yet been significantly affected.

5. Rebuilding and Domestic Vulnerabilities (25:27–27:57)

• Challenges to Rebuilding: Loss of experienced operatives, infrastructure, and stable funding complicates Hezbollah’s efforts to regain power.
  • "It takes time. When you take out people ... lots of years of trust with Iran's Islamic Revolutionary Guard Corps, people who've gone through training, and those people are gone." (25:59)
• Domestic Political Situation: Upcoming elections in Lebanon and the potential for Hezbollah’s Unit 121 (assassination squad) to enforce political dominance.

6. Global Efforts to Choke Hezbollah’s Networks (28:04–33:22)

• Law Enforcement and Multilateral Approaches: U.S. and international bodies emphasize joint investigations, designations, deportations, and financial monitoring.
  • "Lots and lots of different things at once ... getting more countries aware ... making them aware." (28:04)
• Reining in Free Trade Zones: Special attention needed on free trade zones, which are exploited for illicit trade and money laundering.
• Support for Lebanese Armed Forces: Effective international aid requires parallel action to limit Hezbollah’s ability to raise funds.

7. Intelligence, Espionage, and Targeted Operations (33:22–36:18)

• Active Counter-Operations: Israel and the U.S. are intensely focused on disrupting Hezbollah’s global criminal and terrorist networks.
  • "There's absolutely no way, not a chance in hell that this is not being pursued very, very vigorously ... I have to assume that the United States is too." (33:22–33:46)
• Law Enforcement Still Key: Prosecutions and joint investigations continue in Europe, Latin America, and North America.

8. Policy Recommendations & The Path Forward (36:18–43:29)

• Disrupting Iranian Support: The number one priority is to make it harder for Iran to fund and arm Hezbollah and allied groups.
  • "Were it not for Iran, not Hezbollah or Hamas or the Houthis, none of these groups would be anything more than an annoying thorn in the backside." (36:32)
  • Tactic: Sanctions should be dynamically enforced—like "successive jabs in a boxing match" rather than isolated heavy actions. (38:24)
• Shut Down Illicit Finance and Networks Locally: Countries must proactively enforce laws, monitor financial systems, and disrupt illicit networks.
  • "Identify the illicit activity that's happening in your country ... choosing not to is a choice, and it's no longer acceptable." (42:37)

9. Prospects for Lebanon and Hezbollah’s Reduced Influence (43:07–47:45)

• A Weakened Hezbollah: There is genuine opportunity for Lebanon amid Hezbollah’s setbacks but significant challenges remain; the group is still a threat domestically.
  • "It is an entirely different world for Hezbollah ... Iran's on the ropes, the Assad regime no longer exists ... at home in Lebanon, Hezbollah no longer has free reign." (43:29)
• Potential for Future Conflict: Deployment farther north increases risk for Lebanese civilians if another conflict with Israel emerges.
  • Levitt: "If they were to do something that would bring even more of the country under attack, I think they understand now there'd be consequence to that." (46:08)

Notable Quotes & Memorable Moments

• On Hezbollah’s criminal shift:

  "For the cartel, it's not ideological at all. It's just business. For Hezbollah ... it's business. There's a lot of money to be made."
  —Matt Levitt (20:27)

• On the scale of Hezbollah’s decimation:

  "They weren't firing rockets at Israel, not only because many of those rockets were destroyed, but because nobody knew where the button was, nobody knew who to give an order, and there was no one to take an order."
  —Matt Levitt (21:40)

• On why cracking down matters at home:

  "If you want to help try and avoid a resumption of hostilities between Israel and Hezbollah in Lebanon ... the first thing we can do is stop Hezbollah from being able to raise money, raise arms."
  —Matt Levitt (28:51)

• On sanctions and enforcement:

  "Sanctions work best when it's action after action. You're a boxer in the boxing rink ... it's a jab after jab after jab after jab. That's how sanctions has to work."
  —Matt Levitt (38:24)

• On near-term prospects for Lebanon:

  "I believe there's a real opportunity and a real chance for Lebanon to have a better future ... It's an entirely different world for Hezbollah to be in a situation where Iran's on the ropes, the Assad regime no longer exists ... and at home, Hezbollah no longer has free reign."
  —Matt Levitt (43:29)

Important Timestamps by Topic

• Hezbollah’s “Golden Rule” concept – 03:55–05:34
• Hezbollah’s involvement in narcotics trade origins – 05:34–08:31
• Growth in criminal enterprise, key personalities – 08:31–11:06
• Role of fatwa and rationale for drug trade – 11:06–12:46
• Lebanese diaspora and free trade zones – 08:38–13:22
• Integration with global drug cartels – 16:22–20:32
• Hezbollah post-October 7, foreign network pivot – 21:40–25:27
• Difficulties in rebuilding after heavy losses – 25:59–27:57
• International and multilateral law enforcement approaches – 28:04–33:22
• Intelligence operations and shifting U.S./Israeli priorities – 33:22–36:18
• Policy recommendations: constraining Iran, financial disruption – 36:32–43:07
• Lebanon's prospects and future threats – 43:29–47:45

Tone & Style

The conversation is detailed, sharp, and often urgent, blending policy analysis with vivid, sometimes darkly humorous anecdotes and clear-eyed assessments of risks and opportunities. Levitt is methodical but speaks in accessible, relatable terms, and Haviv guides the discussion from a position of deep, personal familiarity with the region.

Conclusion

This episode offers a comprehensive, unvarnished look at Hezbollah’s transformation into a global criminal actor, the systemic challenges of cutting off its lifelines, and the new opportunities—and risks—emerging from its recent setbacks. The dialogue leaves listeners with a sense of complexity and urgency, reminding us that weakening such organizations requires relentless, multi-layered, and internationally coordinated action. As Levitt notes:

"There are no solutions, but there are great many options and opportunities to fundamentally change the equation." (47:45)