UK Imposes Travel Ban on Accused Diamond Smuggler Linked to Hezbollah

The UK government has imposed a travel ban on Lebanese art dealer and diamond trader, Nazem Ahmad, under its Domestic Counter Terrorism Sanctions Regime. 

Ahmad, who has been linked to the Hezbollah militant group, is accused of using smuggled diamonds and valuable artworks to finance terrorism activities. This marks the first use of the UK’s new sanctions regime, which aims to restrict the movements of non-UK nationals involved in terrorism.

Sanctions from the US and UK

Nazem Ahmad was first sanctioned by the US in August 2022, with officials alleging that he had engaged in diamond smuggling and art dealing, violating global terrorism sanctions. The US Treasury described Ahmad as a “prominent money launderer” with ties to Hezbollah, an organisation designated as a terrorist group by multiple governments, including the UK and the US. In addition to his links to diamond smuggling, Ahmad has also been accused of using his art dealings to funnel funds to the militant group.

In April 2023, the UK followed suit, sanctioning Ahmad for allegedly providing financial support to Gaza Now, a UK-based organisation accused of backing the Palestinian militant groups Hamas and Palestinian Islamic Jihad. These sanctions are part of broader efforts by both governments to disrupt financial networks that are believed to support terrorist activities.

First Use of UK’s Domestic Counter Terrorism Sanctions Regime

On 29 August 2024, Ahmad and associate Mustafa Ayash were placed under the UK’s Domestic Counter Terrorism Sanctions Regime. This new regime allows the government to impose travel bans on non-UK nationals suspected of being involved in terrorism, in addition to freezing assets or restricting access to UK financial markets. This case marks the first use of these powers since the sanctions regime was introduced.

Diamond and Art Smuggling Allegations

Ahmad’s alleged involvement in smuggling diamonds and valuable artworks has raised concerns about how high-value assets, such as precious stones, can be used to fund illegal activities. In February 2024, UK authorities seized paintings valued at $1.3 million, including works by Picasso and Warhol, from a London warehouse believed to be connected to Ahmad. According to the police, these artworks were likely intended to be sold to support Hezbollah’s operations.

The use of diamonds and art to finance illicit activities is an ongoing concern for authorities, due to the mobility of high-value items and their potential to evade sanctions.

Importance of Traceability in the Diamond Trade

The case of Nazem Ahmad reinforces the need for greater traceability in the diamond trade. Conflict diamonds, often sourced from regions controlled by armed groups, continue to pose a serious challenge to the jewellery industry. The Ahmad case demonstrates how diamonds can be used to fund illegal activities, making it essential for jewellers to ensure that their diamonds are sourced responsibly.

Traceability ensures that every stage of a diamond’s journey, from mine to market, can be tracked, helping jewellers avoid inadvertently handling conflict diamonds. By adopting rigorous due diligence practices and working with suppliers who can provide certification, jewellers can protect themselves from legal and reputational risks while contributing to ethical business practices.

Ongoing Investigation and Global Efforts

The investigation into Ahmad’s activities is ongoing, and the US State Department has offered a reward of up to $10 million for information leading to his capture. In its statement, the US described Ahmad as a “significant financier” of Hezbollah, with his network spanning across Lebanon and Europe. Authorities in both the US and the UK are expected to continue efforts to dismantle this financial network.