Founded in 1983, Al-Qard Al-Hassan, which translates to “the benevolent loan,” calls itself a charitable organisation.
Israel conducted precise airstrikes on branches of Al-Qard Al-Hassan (AQAH), a financial institution associated with Hezbollah, the Lebanese militant organization supported by Iran. The attacks targeted Hezbollah strongholds in the southern suburbs of Beirut, southern Lebanon, and the northeastern Beqaa Valley with strikes. These strikes, occurring from late Sunday night to Monday morning, are an attempt by Israel to damage Hezbollah’s financial system and reduce its capacity to finance activities.
The IDF verified that a minimum of 11 branches of AQAH were targeted as part of a mission to disrupt Hezbollah’s access to crucial financial assets.
What Exactly is Al-Qard Al-Hassan?
Established in 1983, Al-Qard Al-Hassan, meaning “the benevolent loan,” identifies as a charitable organization following Islamic finance principles that forbid interest. The goal is to give interest-free loans to the Shiite community in Lebanon, especially those who support Hezbollah. AQAH provides loans backed by assets like gold or jewelry, providing essential credit to struggling Lebanese citizens amidst an economic downturn.
It is claimed that Al-Qard Al-Hassan runs 30 branches in various parts of Lebanon, with a significant number situated in Beirut’s Hezbollah-controlled areas. After Lebanon’s financial collapse in 2019, its impact increased, as traditional banks significantly restricted depositors’ ability to access their savings. However, AQAH kept functioning, enabling its customers to access cash – frequently in a foreign currency – when other banks were unable to do so.
AQAH functions with a license provided by the government of Lebanon. In 2007, AQAH was sanctioned by the US Department of the Treasury for allegedly acting as Hezbollah’s financial branch. American authorities argue that AQAH aids Lebanon’s Shia community while facilitating the transfer of Hezbollah’s money through fake accounts, enabling the organization to utilize the global financial system in defiance of sanctions intended to restrict its finances.
Hezbollah’s Utilization of AQAH
Hezbollah, which became a major power in Lebanon following Israel’s invasion in 1982, has consistently used hawala networks and financial systems to garner and sustain backing, particularly from the Shiite community in Lebanon. Throughout time, Al-Qard Al-Hassan has evolved into a key component in Hezbollah’s plan.
In Lebanon, there are hawala networks functioning as money-transfer establishments, handling sizable amounts of money.
A large number of Lebanese residents, especially those who support Hezbollah, rely on AQAH for loans in foreign currency, using items like jewelry or gold as collateral. Although most loans are under $5,000, they are vital sources of support for individuals funding weddings, education, or launching small businesses. Recently, Hezbollah has offered all Lebanese people the chance to use AQAH’s services, regardless of their sect or political beliefs. The group has advocated for AQAH as a substitute for the conventional banking system, which failed during the 2019 economic crisis.
The Israeli Defense Forces (IDF) verified that they targeted a vault beneath a hospital in Beirut, which allegedly contained $550 million for Hezbollah’s military operations. Israel contends that these financial assets are crucial for Hezbollah to sustain their procurement of weaponry and payment of combatants. Israeli defense authorities claim that AQAH is in charge of protecting up to $750 million annually in Iranian funding, along with earnings from Hezbollah’s various criminal activities such as drug smuggling and financial crime.
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