Israel Targets Hezbollah-Linked Financial Institution in Lebanon
The Israeli military has launched a series of airstrikes aimed at branches of a financial institution associated with Lebanon’s Hezbollah, alleging that this quasi-banking system is being used to finance the militant group’s military activities. The strikes, which took place on a Sunday night, resulted in the destruction of over a dozen branches of al-Qard al-Hasan across Lebanon.
These airstrikes come just two weeks after an airstrike that killed a prominent figure known as Hezbollah’s “finance minister.” Israel has stated that after targeting top Hezbollah political and military leaders, they are now focusing on the group’s financiers and financial institutions to further disrupt their operations.
Al-Qard al-Hasan, a non-profit charity institution operating outside the Lebanese financial system, is a key tool through which Hezbollah garners support among the Shiite population in Lebanon. In addition to its military wing, Hezbollah operates various social services, including schools, hospitals, and low-cost grocery stores, with hundreds of thousands of supporters benefitting from al-Qard al-Hasan.
The US Treasury has imposed sanctions on al-Qard al-Hasan since 2007, citing its use by Hezbollah to manage its financial activities and access the international financial system. Established four decades ago, al-Qard al-Hasan provides interest-free loans, accepts gold deposits as collateral, and offers banking services such as savings accounts.
Following Lebanon’s financial crisis in 2019, al-Qard al-Hasan became a vital lifeline for many Lebanese citizens, allowing them to access funds when traditional banks imposed withdrawal limits. Despite the Israeli airstrikes, experts believe that the destruction of al-Qard al-Hasan branches may not significantly impact Hezbollah’s overall finances, as the group reportedly receives funding from Iran and wealthy supporters globally.
While the strikes may add to chaos and fear among Hezbollah supporters, the group’s reliance on external funding sources like Iran is expected to mitigate any immediate financial impact. Customers of al-Qard al-Hasan still express faith in Hezbollah’s ability to support them, indicating a continued trust in the group’s resilience.
The recent attacks on Hezbollah’s financial infrastructure follow earlier strikes that targeted key figures responsible for transferring funds to the militant group, including Mohammed Jaafar Qassir. The US Treasury had accused Qassir of facilitating financial transactions for Hezbollah through illicit activities. The Israeli military also targeted Qassir’s Unit 4400, which manages weapons shipments from Iran to Lebanon.
In response to the airstrikes, al-Qard al-Hasan assured customers of their safety and relocated assets to secure locations. Despite the disruptions, the institution’s operations are believed to extend beyond physical branches, with customers expressing confidence that Hezbollah will mitigate any financial losses.
As Israeli airstrikes continue to target Hezbollah’s financial networks, the repercussions on the group’s operational capacity and support base remain uncertain. While the destruction of financial institutions like al-Qard al-Hasan may disrupt logistical and financial flows, Hezbollah’s reliance on external funding and grassroots support suggests a complex and resilient financing structure.