MONTREAL — The U.S. government has accused the Beirut-based Lebanese Canadian Bank (LCB) of ties with Hezbollah and engaging in money laundering for an international narcotics trafficking ring whose proceeds support the terrorist organization.

The bank has a representative office in Montreal, its only overseas presence.

On Feb. 10, the U.S. Treasury Department issued a warning that U.S. financial institutions are prohibited from certain dealings with LCB.

Hundreds of millions of dollars, the proceeds of illicit drug sales, are moved through the bank each month, Washington says.

“The Lebanese Canadian Bank for years has participated in a sophisticated money laundering scheme involving used cars purchased in the United States and consumer goods overseas,” the department said in a statement.

“Thanks to [Drug Enforcement Agency]-led operations, as well as today’s Treasury action, we are exposing and disrupting this money laundering network and its connection to global drug trafficking and Hezbollah,” said DEA administrator Michele Leonhart.

The Treasury Department said it has reason to believe the bank’s managers are complicit in these activities.

According to U.S. government information, Hezbollah benefited financially from the criminal activities of Lebanese drug kingpin Ayman Joumaa. Joumaa and his network used the bank to launder their ill-gotten gains.

“LCB managers are also linked to Hezbollah officials outside of Lebanon,” the release stated. “For example, Hezbollah’s Tehran-based envoy Abdallah Safieddine was involved in Iranian officials’ access to LCB and key LCB managers, who provide them banking services.

“LCB’s other links to Hezbollah include LCB’s subsidiary, Gambia-based Prime Bank, which is partially owned by a Lebanese individual known to be a supporter of Hezbollah.”

LCB, which has 35 branches in Lebanon, was a subsidiary of the Royal Bank of Canada Middle East from 1968 to 1988 and is now a privately owned Lebanese bank.

In a 2008 civil suit filed in Quebec Superior Court, LCB was alleged to be complicit in terrorism against Israeli civilians by virtue of providing financial services to Hezbollah.

The action was taken by four Canadian citizens living in northern Israel for damages they said they suffered during the war between Israel and Hezbollah in 2006.

None of the alleged illegal activities took place in Canada, U.S. authorities say.