
The Central Bank of Lebanon has issued a directive prohibiting all licensed financial institutions from engaging in any form of direct or indirect interaction with Al-Qard Al-Hassan, the financial arm of the Iran-backed terrorist group Hezbollah. A circular detailing the new policy was viewed by Reuters on Tuesday.
Al-Qard Al-Hassan, which was founded in 1983, presents itself as a charitable organization that provides interest-free loans in accordance with Islamic principles. The organization holds a license from the Lebanese government and operates over 30 branches, predominantly in Shiite Muslim regions of Beirut, southern Lebanon, and the Bekaa Valley.
The move by the Lebanese central bank follows years of international scrutiny. The US Department of the Treasury placed sanctions on Al-Qard Al-Hassan in 2007.
The US government asserted that Hezbollah utilized the institution to manage its "financial activities and gain access to the international financial system."
During its conflict with Hezbollah last year, Israel targeted and struck several branches belonging to the organization.