Juan Pecquet writes:  European officials, not the Lebanese, are the ones raising sharp questions about Hezballlah sanctions legislation that unanimously passed the House in July.  European officials are worried about crippling Lebanon’s economy even as Beirut’s bankers say they’re OK with the House-passed Hezbollah sanctions bill.  The legislation has stalled in the Senate partly as a result, but the bill’s backers are confident they can address any concerns.

Lebanese bank officials in  contrast have said they can live with the new restrictions, especially after a lengthy “findings” section that could have cast the country’s financial sector in a negative light was cut from the bill.

Concern is not as much with the American financial institutions as it is with some of the European financial institutions — and the pushback is coming primarily from that entity.

The EU has been reluctant to break ties with the Shiite militia — it labeled Hezbollah’s so-called military wing a terrorist organization only last year under rising US pressure — and has not blacklisted the group’s bank accounts and assets. Countries such as France insist on maintaining open channels with the most powerful political force in Lebanon.

“We are in contact with working-level staffers of Congress on a very regular basis to exchange on many foreign policy issues,” a French diplomatic source said. “Lebanon is one of the issues discussed, as are Africa, Ukraine, Syria, Iraq or Ebola to name just a few over the last few months.”

The British government did not respond to a request for comment.

Joseph Gebeily, president of the Lebanese Information Center in Washington, said Hezbollah relies on the European financial sector in part because it actively avoids Lebanese banks.  “Hezbollah’s image is important to Hezbollah. They don’t want to be seen as doing damage [to the Lebanese banking sector],  Even Hezbollah parliamentarians can’t open an account.”