Al-Qard al-Hassan, a financial institution linked to Hezbollah and operating through 34 branches in areas controlled by the militia, has recently drawn attention for its role in the group’s financial operations.
The Israeli think tank Alma Research and Education Center, which focuses on security issues in northern Israel, has provided information on the recent activities and implications of Hezbollah’s “financial backbone.”
Cash Flow Renewal
On March 5, al-Qard al-Hassan issued a new directive allowing immediate compensation payments of up to $1,000, overturning a previous policy that required a 20-day waiting period. This directive, implemented about two weeks after the funeral of former Hezbollah Secretary-General Hassan Nasrallah on February 23, suggests a partial restoration of cash flow, potentially facilitated by Iranian funds. According to Alma Research, the event may have served as a platform for the physical transfer of funds to Hezbollah via visiting delegations.
International Pressure and Sanctions
Alma Research also highlights the need for international pressure, particularly from the United States, to force the Lebanese government to shut down al-Qard al-Hassan.
The institution has been identified as a critical financial conduit for Hezbollah, funded by Iran, and has been accused by the US Treasury of undermining Lebanon’s official institutions and worsening the country’s economic crisis. According to the local MTV network, Washington insists on the necessity of dismantling this institution, viewing it as a major obstacle to the economic reforms needed to pull Lebanon out of its current crisis.
On October 21, 2024, the Israeli Air Force conducted targeted strikes on more than a dozen al-Qard al-Hassan branches, in an effort to disrupt Hezbollah’s financial network.
Despite these strikes, Hezbollah actively rehabilitated the damaged branches. For instance, the main branch in Beirut’s Zokak al-Blat district was reopened on May 19 after extensive renovation work. This rehabilitation effort is seen as a major propaganda tool for Hezbollah, demonstrating the defiance of its Shiite base.
On October 27, 2024, Saudi Arabia designated al-Qard al-Hassan as a terrorist entity. The institution was accused of being one of Hezbollah’s primary money laundering platforms, further complicating its operations and international standing. This designation provoked a reaction from Hezbollah supporters, who launched a social media campaign against Saudi Arabia under the hashtag “you are the source of terrorism.”
Discussions are underway to consider shutting down al-Qard al-Hassan through the Ministry of the Interior – the authority that initially issued its license – in order to avoid involving the Central Bank of Lebanon, which has no jurisdiction over the entity.
Wider Implications
Al-Qard al-Hassan’s activities have broader implications for Lebanon’s economic and political landscape. The institution’s role in providing interest-free loans and other financial services to the Lebanese Shiite community has been a point of contention.
Although it claims to promote social cohesion and cooperation, the institution is accused of evading regulation by the Central Bank and potentially serving as a money laundering channel.
Amid missiles, millions and slogans, al-Qard al-Hassan embodies Lebanon’s brand of organized chaos. Clearly, for Hezbollah, rebuilding a branch is more valuable than building a country.
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