Lebanon’s central bank, Banque du Liban, banned the country’s licensed financial institutions from any direct or indirect interactions with unlicensed entities and Hezbollah’s Al-Qard Al-Hassan in a circular viewed by Reuters.
US Ambassador Tom Barrack called the move “a step in the right direction” in a post on X/Twitter on Tuesday.
“A step in the right direction by the Lebanese government in harnessing the flow of Hezbollah militia finances that had been directed [through] Al-Qard Al-Hassan.
“Transparency and alignment of all financial intermediaries in Lebanon under the supervision of the central bank is a valued and necessary accomplishment,” he added.
Barrack had visited Beirut last week to discuss a proposed plan to disarm Hezbollah.
Israel heavily struck Lebanon on Tuesday, saying it targeted Hezbollah training camps and weapons depots in the eastern part of the country.
Al-Qard Al-Hassan
The US Treasury imposed sanctions on Al-Qard Al-Hassan in 2007, arguing that Hezbollah used it as a cover to manage “financial activities and gain access to the international financial system.”
Al-Qard Al-Hassan, founded in 1983, describes itself as a charitable organization that provides loans to people in accordance with Islamic principles that prohibit interest. Israel struck some of its branches during its war with Hezbollah last year.
The terror group has been grappling with acute financial strains, US demands for its disarmament, and diminished political clout since a new Lebanese cabinet took office in February with US support.
The group’s difficulties have been compounded by seismic shifts in the regional power balance since Israel decimated its command, killed thousands of its fighters, and destroyed much of its arsenal last year.
Hezbollah’s Syrian ally, Bashar al-Assad, was toppled in December, severing a key arms supply line from Iran. Tehran is now emerging from its own bruising war with Israel, raising doubts over how much aid it can offer, a regional security source and a senior Lebanese official told Reuters.
Another senior official, who is familiar with Hezbollah’s internal deliberations, said the group had been holding clandestine discussions on its next steps.
Small committees have been meeting in person or remotely to discuss issues including the terror organization’s leadership structure, political role, social and development work, and weapons, the official said on condition of anonymity.
In December, Secretary-General Naim Qassem said Hezbollah had paid more than $50 million to affected families, with more than $25 million still to hand out. But there are signs that its funds are running short.
One Beirut resident said he had paid for repairs to his apartment in the Hezbollah-controlled southern suburbs after it was damaged in the war, only to see the entire block destroyed by an Israeli airstrike in June.
“Everyone is scattered and homeless. No one has promised to pay for our shelter,” said the man, who declined to be identified for fear his complaints might jeopardize his chances of receiving compensation.
He said he had received checks from Hezbollah but was told by the group’s financial institution, Al-Qard Al-Hassan, that it did not have funds available to cash them. Reuters could not immediately reach the institution for comment.