By Noureddine Omar | 2025-09-26

Ecuadorian President Daniel Noboa signed an executive decree on September 16 designating the Islamic Revolutionary Guard Corps (IRGC), Hizbullah, and Hamas as terrorist organizations.

The move followed warnings from Ecuador’s National Intelligence Center (CNI), which earlier this year reported the strong presence of these groups in Latin America and their suspected ties to Ecuadorian criminal networks.

Experts view the decision as a major step toward disrupting the financial pipelines that sustain the IRGC and its proxies.

Iran’s proxies have long used Latin America as a hub for smuggling, money laundering, and narco-trafficking -- activities that ultimately fund destabilizing operations in the Middle East, they said.

Cutting off funding sources

"The war on terrorism cannot be complete unless it targets the external funding sources and financial arms," military expert Yahya Mohammed Ali told Al-Fassel.

"This, of course, applies to the IRGC to halt its destructive plans against the countries it sees as its targets," he added.

Ali said that Ecuador’s decision "will have a positive impact on most Latin American countries," since the Iranian regime has long used the region "as a base for its proxies to smuggle weapons, traffic drugs, and engage in corruption, with the aim of destabilizing the Middle East."

"Given the interconnectedness of the IRGC’s networks with criminal networks involved in arms smuggling, and with drugs and organized crime mafias and cartels, other countries may follow Ecuador’s example," he said.

The decision reflects the current international determination to halt any activity by the IRGC and its affiliates by designating them as terrorist organizations and imposing sanctions, Ali said.

IRGC’s footprint in Latin America

Analysts say that the IRGC’s presence in Latin America is not new. For years, the group and its affiliates have operated networks across the region.

"The IRGC and its global arms had established themselves in several Latin American countries and formed cells that engage in all sorts of illegal activities, including drug trafficking, arms smuggling, and human trafficking," said Sheyar Turko, an expert on IRGC activities.

"This constitutes a significant source of funds for the IRGC, enabling it to finance its arms in the Middle East, in addition to securing ammunition and weapons to implement plans to destabilize the region’s countries," he added.

These cells, he said, carried out "dirty acts" to secure "large amounts of money" for Tehran’s agenda.

Ecuador’s designation signals a wider recognition in Latin America of the dangers posed by the Iranian regime’s proxies.

By taking direct aim at their financial lifelines, Ecuador has not only strengthened its own security but may also inspire neighboring countries to adopt similar measures.

For Tehran, the decision marks a setback in its long-running efforts to expand its influence in the Western Hemisphere.