At a general meeting in Cairo, the members of the Arab League have named the Lebanese Shi'ite group Hezbollah a terrorist organization. The vote was reportedly by consensus, with Iraq and Lebanon opposing; Hezbollah controls much of the south and east of Lebanon, and Hezbollah-aligned troops fight on the side of that Iraq Government, against ISIS/ISIL. This action follows a similar ruling by the Gulf Cooperation Council (GCC).
No details have been released, regarding precisely what economic and other sanctions Arab League members will now impose upon Hezbollah. but the League's action this week means that international banks who, unwittingly or negligently, transfer terrorist financing destined for Hezbollah, into or through League members, run a major risk that they may be subject to civil fines and penalties, or have their local branches abruptly closed. Additionally, reputation damage, as well as fines & penalties from regulators in the banks' home jurisdictions could also be imposed.
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