US Starts Process of Establishing Consulate in Western Sahara

US Ambassador in Morocco David T. Fischer (left) and David Schenker, the top US diplomat for the region, take a selfie wearing a Sahrawi traditional dress in Dakhla, Western Sahara, on January 10, 2021. (AFP)
US Ambassador in Morocco David T. Fischer (left) and David Schenker, the top US diplomat for the region, take a selfie wearing a Sahrawi traditional dress in Dakhla, Western Sahara, on January 10, 2021. (AFP)
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US Starts Process of Establishing Consulate in Western Sahara

US Ambassador in Morocco David T. Fischer (left) and David Schenker, the top US diplomat for the region, take a selfie wearing a Sahrawi traditional dress in Dakhla, Western Sahara, on January 10, 2021. (AFP)
US Ambassador in Morocco David T. Fischer (left) and David Schenker, the top US diplomat for the region, take a selfie wearing a Sahrawi traditional dress in Dakhla, Western Sahara, on January 10, 2021. (AFP)

The United States on Sunday started the "process of establishing" a consulate in contested Western Sahara, after Washington recognized Morocco's sovereignty there in exchange for Rabat normalizing ties with Israel.

US ambassador David Fischer visited the port of Dakhla, 1,440 kilometers (895 miles) southwest of Rabat in the far south of Moroccan-controlled Western Sahara, to mark the start of work on a diplomatic office.

"It is such an honor for me to visit this stunningly beautiful and critically important region of Morocco, and to begin the process of establishing a US diplomatic presence here," Fischer said, according to the US embassy.

Western Sahara is a disputed and divided former Spanish colony, mostly under Morocco's control, where tensions with the pro-independence Polisario Front have simmered since the 1970s.

Last year, Morocco joined the United Arab Emirates, Bahrain and Sudan in agreeing to normalize ties with Israel under US-brokered deals.

In return, US President Donald Trump fulfilled a decades-old Moroccan goal by backing its contested sovereignty over the barren but phosphate-rich region, which lies next to key Atlantic fishing zones.

Foreign Minister Nasser Bourita said Sunday that "Morocco feels stronger in its legitimate fight for its territorial integrity... with the support of its friends."

UN peacekeepers in Western Sahara are mandated to organize a referendum on self-determination for the region, and despite Washington's move, the UN insists its position is "unchanged".

Fischer, who called the visit Sunday "another historic milestone in more than 200 years of friendship" between Morocco and the US, was accompanied by Assistant Secretary of State for Near Eastern Affairs David Schenker.

In December, the US State Department opened a "virtual" diplomatic post in Western Sahara, ahead of finding "an appropriate site" to build a consulate.

The building is expected to be ready in the coming months, Fischer added.



Lebanon Bans Dealing with Hezbollah Financial Entity

A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
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Lebanon Bans Dealing with Hezbollah Financial Entity

A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo

Lebanon's central bank has banned banks and brokerages from dealing with a Hezbollah-affiliated financial institution, according to a circular, a sign of the group's diminished sway over state affairs since its devastating war with Israel.

Keeping up military pressure on the Iran-backed group, Israel on Tuesday launched some of its heaviest airstrikes since a ceasefire in November, saying it hit training camps and weapons depots in east Lebanon. A security source in Lebanon said 12 people were killed, five of them Hezbollah fighters, Reuters reported.

Hezbollah has faced mounting pressures since the war, including financial ones.

In the circular, dated July 14 and reviewed by Reuters, Banque du Liban prohibited all licensed financial institutions in Lebanon from dealing directly or indirectly with unlicensed entities and listed Hezbollah's Al-Qard Al-Hassan as an example.

The US Department of Treasury imposed sanctions on Al-Qard Al-Hassan in 2007, saying Hezbollah used it as a cover to manage "financial activities and gain access to the international financial system".

Bolstered by its powerful arsenal, Hezbollah had long exercised decisive influence over Lebanese state affairs, but it was unable to impose its will in the formation of a post-war government in February.

Al-Qard Al-Hassan, founded in 1983, describes itself as a charitable organisation which provides loans to people according to Islamic principles that forbid interest. Israel struck some of its branches during its war with Hezbollah last year.

Operating as a not-for-profit organisation under a licence granted by the Lebanese government, it has more than 30 branches, mostly in southern Lebanon and the Bekaa Valley.

SHADOW ECONOMY

A Lebanese official said the central bank move had been in the works for months, and reflected US pressure on Lebanon to take action against Hezbollah's financial wing.

Nassib Ghobril, chief economist at Byblos Bank, said Lebanese banks were already careful to avoid dealing with Al-Qard Al-Hassan because it is under US sanctions.

"The important point is that finally the authorities are addressing the shadow economy in Lebanon, which is the real problem," he said, adding that authorities had long failed to address its "toxic effects".

In June, the European Commission included Lebanon in an updated list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism.

Last year, global financial crime watchdog FATF placed Lebanon on its "grey list" of countries under special scrutiny.