A news report by Fred Kahn
The U.S. government’s recent decision to classify drug cartels as terrorist organizations is not just a policy shift—it is a recognition of a decades-old reality. While drug cartels have traditionally been viewed as organized crime syndicates focused solely on profit, their long-standing relationships with terrorist groups such as Hezbollah, Hamas, FARC, and ISIS prove that they are much more than criminal enterprises. These connections have allowed cartels to launder billions of dollars, fund terrorist activities, and facilitate global illicit trade.
For years, terrorist organizations have relied on drug trafficking and cartel-controlled financial networks to fund their activities. Drug cartels, in turn, have used these partnerships to strengthen their operations, gain access to advanced weaponry, and evade law enforcement. This mutually beneficial relationship has allowed both cartels and terrorist groups to expand their reach and destabilize governments worldwide.
With cartels now designated as terrorist organizations, the fight against transnational crime must adapt. Financial institutions, law enforcement agencies, and intelligence services must implement stricter counterterrorism measures to combat the growing influence of these groups. Below, we examine in detail how drug cartels have facilitated the financing of some of the most dangerous terrorist organizations in the world.
Table of Contents
Hezbollah and Cartel Drug Trafficking Networks
Hezbollah has been deeply involved in the global drug trade for decades, using cartel partnerships to fund its military and political operations in the Middle East. Hezbollah has established itself as a key narcoterrorist player by working with Latin American drug cartels, particularly in Venezuela, Brazil, and the Tri-Border Area of Argentina, Paraguay, and Brazil.
Operation Cassandra – Hezbollah’s cocaine empire
In 2017, the DEA’s Operation Cassandra exposed a massive Hezbollah-run cocaine trafficking network that funneled billions of dollars in drug profits through Latin America, Europe, and the Middle East. The investigation revealed that Hezbollah operatives partnered with Colombian and Mexican drug cartels to traffic vast amounts of cocaine into the United States and Europe, using a sophisticated network of front companies and shell businesses.
According to law enforcement officials, Hezbollah’s Business Affairs Component was responsible for overseeing the laundering of drug proceeds through a network of exchange houses, banks, and shell corporations. The profits from these operations directly funded Hezbollah’s military wing, which has been linked to terrorist attacks and armed conflicts in Syria, Lebanon, and beyond.
The Lebanese connection – cartel gold and Hezbollah funding
In 2020, U.S. authorities dismantled a Lebanese money laundering network that used gold smuggling to finance both Hezbollah and Latin American drug cartels. The scheme involved Venezuelan drug traffickers who laundered their profits through the purchase of illicit gold. This gold was then shipped through various intermediaries, including Hezbollah-linked traders in Lebanon. The funds generated from these transactions were ultimately funneled back to Hezbollah, strengthening the group’s ability to finance terrorist activities.
Hezbollah’s ability to integrate itself into cartel money laundering operations has made it one of the most financially resilient terrorist organizations in the world. Its partnership with cartels has enabled it to maintain a steady flow of revenue while allowing drug cartels to operate within Hezbollah-controlled territories with minimal interference.
Hamas and Cartel Money Laundering Networks
Unlike Hezbollah, Hamas does not directly engage in drug trafficking. However, it has been found to utilize cartel-affiliated money laundering networks to move illicit funds. Reports suggest that Hamas has received significant financial support from intermediaries operating within cartel-controlled financial networks in South America.
Cartel-hawala networks funding Hamas
A 2022 Israeli intelligence report revealed that Hamas had exploited hawala networks—an informal money transfer system—to receive millions of dollars in cartel-generated profits. The investigation found that Latin American drug cartels used corrupt financial intermediaries to disguise illicit drug proceeds as legitimate business transactions. A portion of these funds was later redirected to Hamas-controlled charities and front organizations in Gaza.
Hamas operatives have also reportedly used cartel money laundering services to purchase weapons on the black market. These underground arms transactions take place through the same illicit trade channels that supply weapons to Mexican and Central American drug cartels. The ease with which Hamas has been able to access these cartel-controlled financial networks demonstrates the growing overlap between drug cartels and terrorist organizations.
FARC and the Cocaine Trade – A Classic Case of Narcoterrorism
The Revolutionary Armed Forces of Colombia (FARC) provides one of the clearest examples of a terrorist organization financing itself through drug trafficking. At its peak, FARC controlled nearly 70 percent of Colombia’s cocaine production, generating billions of dollars in revenue. The group used these drug profits to fund its armed insurgency, purchase military-grade weapons, and expand its operations.
FARC’s partnership with the Sinaloa Cartel
For decades, FARC supplied massive cocaine shipments to the Sinaloa Cartel, one of Mexico’s most powerful criminal organizations. In return, the cartel paid FARC millions of dollars, which were used to sustain its terrorist operations. This relationship allowed FARC to expand its influence in Colombia while providing the Sinaloa Cartel with a steady supply of high-quality cocaine.
Even after FARC’s 2016 peace agreement with the Colombian government, dissident factions known as FARC-EP continue to traffic drugs. These groups have since formed new alliances with Mexican cartels and Hezbollah-linked smugglers to continue financing their insurgent activities. The persistence of these partnerships highlights the enduring link between drug cartels and terrorist organizations.
ISIS and Cartel Drug Smuggling Routes
ISIS has not traditionally been involved in drug trafficking, but intelligence reports suggest that it has exploited cartel-controlled smuggling routes to move operatives, weapons, and illicit funds. These smuggling routes provide ISIS with access to global financial networks that can be used to facilitate its terrorist operations.
Fentanyl sales and ISIS-affiliated smugglers
In 2023, Europol released intelligence linking ISIS-affiliated financial networks to fentanyl sales in North Africa and the Middle East. The report revealed that cartel-run fentanyl shipments had partially funded ISIS activities in Syria, Iraq, and Afghanistan.
The similarities between ISIS and cartel money laundering tactics—including trade-based money laundering, bulk cash smuggling, and shell company networks—underscore the growing convergence of terrorist financing and drug cartel operations.
Human smuggling routes connecting cartels and ISIS
There is growing concern that ISIS operatives have infiltrated cartel-run human trafficking networks to gain access to the United States and Europe. A 2022 U.S. Congressional report revealed that ISIS-affiliated individuals were caught attempting to cross into the United States through cartel-controlled smuggling routes in Central America. These findings raise alarms about the increasing use of cartel infrastructure by terrorist groups seeking to expand their global footprint.
Conclusion: The U.S. Designation of Cartels as Terrorist Organizations is Justified
The evidence is overwhelming—drug cartels and terrorist organizations share deep financial, logistical, and operational ties. Whether through Hezbollah’s cocaine trafficking empire, Hamas’s money laundering networks, FARC’s narco-terrorist insurgency, or ISIS’s use of cartel smuggling routes, the connections are undeniable.
By formally recognizing cartels as terrorist organizations, the U.S. is acknowledging the reality that transnational organized crime and terrorism are increasingly interconnected. Financial institutions, law enforcement agencies, and intelligence networks must adapt to this evolving threat landscape by adopting counterterrorism strategies to combat drug cartel operations.
The days of treating cartels as mere criminal organizations are over. They pose a fundamental threat to national and global security, just as much as traditional terrorist groups. The only way to effectively combat their influence is through a coordinated effort that targets both their financial operations and their logistical networks.
Related Links
- U.S. Treasury: Cartel Sanctions
- DEA Reports on Drug Cartels
- FATF Guidance on Money Laundering
- Interpol Drug Trafficking Reports
- UN Reports on Global Drug Crime
