On Thursday, Defense Minister Israel Katz’s office said Israel had imposed sanctions on dozens of clients of a bank closely linked to the Lebanese Shiite terrorist group Hezbollah.
The measures were applied to 24 entities using branches of Al-Qard Al-Hassan (AQAH), an unlicensed credit association but widely considered the bank of Hezbollah.
“We will put our hands on all those who support terrorism, on all fronts and by all means,” Katz said in a statement, describing the sanctions as part of efforts to “dismantle terrorist networks and strike those which provide them with economic oxygen.”
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The Defense Ministry did not name the targeted entities or explain how the sanctions would be applied, making it difficult to assess the real ramifications of the measure.
Israel and the United States say AQAH, which has more than 30 branches across Lebanon, is used by Hezbollah for money laundering and terrorist financing, something the Lebanese Shiite terror group denies.
On October 21, Israeli warplanes carried out a series of airstrikes on at least fifteen AQAH branches across Lebanon. Israel said it had issued evacuation warnings ahead of the strikes. Many Lebanese civilians keep their savings in this financial institution.
Defense Minister Israel Katz (left) during a visit to the Northern Command with IDF Chief of Staff Lt. Gen. Herzl Halevi, November 13, 2024. (Capture video screen X; used in accordance with clause 27a of the Copyright Act)
According to the Defense Ministry, the sanctions are part of an ongoing financial campaign against the Lebanese Shiite terrorist group Hezbollah and were taken on the recommendation of Israel’s National Counterterrorism Financing Bureau (NBCTF).
The ministry specified that the targets were clients who had deposited large amounts with the institution, which directly finances the activities of the terrorist group Hezbollah.
The deposited funds are used, among other things, to purchase weapons, provide loans and pay the salaries of Hezbollah terrorists.
The ministry said the sanctions program, carried out by the NBCTF in cooperation with the Directorate of Military Intelligence and other security bodies, was part of a “broad economic campaign aimed at damaging and thwarting the financing channels of terrorist groups.
The sanctions will “locate and thwart the international financial activities of these entities and organizations associated with them,” said NBCTF head Paul Landes.
Al-Qard al-Hassan, which is officially a non-profit charitable organization, is one of the tools by which the Iranian-backed Hezbollah secures support among the country’s Shiite population, while even as the group has faced enormous criticism over the past year among Lebanese angry at the political elite.
In addition to its military wing, Hezbollah has branches that run low-cost schools, hospitals, and grocery stores, as well as AQAH, which benefits hundreds of thousands of its supporters.
The U.S. Treasury has imposed sanctions on AQAH al-Hassan since 2007, saying it is “used by Hezbollah as a cover” to manage the terrorist group’s financial activities “and access the international financial system.”
Founded forty years ago, shortly after the creation of Hezbollah, Al-Qard al-Hassan, whose name in Arabic means “the benevolent loan”, offers zero-interest loans and allows people to deposit gold as collateral in exchange for credit, which allows them to pay for school fees and weddings, buy a car or start a small business. It is also possible to open savings accounts there.
Since October 8, 2023, Hezbollah has attacked Israeli communities and military posts along the border daily with rockets, drones, anti-tank missiles and other means, claiming it is doing so to support Gaza as part of of the war against the Palestinian terrorist group Hamas which is taking place there.
The fighting has intensified after months of near-daily Hezbollah rocket and drone attacks on northern Israel, which forced the evacuation of some 60,000 residents. In late September, Israel intensified its airstrikes against Hezbollah and also engaged in a limited ground operation aimed at driving the terrorist group away from the border area and restoring security to the region.
