Hezbollah strives for financial rehabilitation

One of the biggest tasks for Lebanon’s new president, Joseph Aoun, will be to cut off the flow of cash to Hezbollah from Iran, which is the source of 90% of the Shiite terrorist group’s budget. 1 billion dollars per year. The rest comes from illegal activities such as cocaine trafficking, or from Hezbollah-run charities.

Hezbollah’s financial center, the Al-Qal al-Hassan Banking Association, still exists, despite attacks by Israel during the war. The financial institution, which is not connected to the SWIFT system, operates about 30 branches in Shiite-populated areas, about half of which are in Beirut. Our association offers three types of accounts: a basic account, a donation account for wealthy individuals, and a social cooperation fund. This organization actually functions as a bank, offering interest-free loans in exchange for collateral ranging from gold to third-party guarantees.

According to the Foundation for Defense of Democracies (FDD), a U.S. think tank specializing in foreign policy and national security, the amount of loans by Al-Khal Al-Hassan rose to approximately 76.5 million yen in 2007, the year after the second Lebanon collapse. increased from $. War, approximately $480 million in 2019. The network’s total activity from its opening in 1983 to 2019 is estimated at approximately $3.5 billion. The use of the US dollar is intentional, as it ensures protection against erosion of the Lebanese pound and perpetuates a situation in which Hezbollah operatives receive salaries ten times higher than Lebanese soldiers.

pursuit of cash

The main challenge for Al Qad Al Hassan is that its activities are cash-based. Hezbollah suffered a severe blow from both the actual damage in Lebanon and the fall of the Assad regime, which allowed Iran to make Syria a focal point for the flow of funds to Hezbollah. The Israeli Ministry of Defense recognizes that Hezbollah employed two methods to obtain cash, which was not very important before the war. One is to manage large-scale projects in areas such as supermarkets and construction development as part of a long-term strategy to increase financial “independence”. Iranian diplomats arrive at Beirut airport with suitcases full of cash.

In a rare incident a week and a half ago, local security forces detained an Iranian diplomat at Beirut airport for a baggage check, Lebanese television station Al-Jadeed reported. The move is in addition to years of intelligence and Mossad operations against al-Qaad al-Hassan. Al-Qard Al-Hassan used a personal bank account and authorized the use of SWIFT to transfer, withdraw, and subsequently deposit funds with the assistance of government agencies. Employees of the organization’s reservists. This surveillance led to U.S. sanctions that almost completely strangled Hezbollah’s ties to the SWIFT international clearing system.

Surviving Hezbollah leaders are already formulating a rebuilding plan with support from al-Qad al-Hassan. According to a report in Asharq al-Awsat newspaper, Hezbollah has allocated about $1 billion to support Shiite families affected by the war, with each family receiving $12,000, which is the lowest on the Lebanese side. It’s expensive. This is partly because the Shi’ite community has opened the door to Hezbollah’s terrorist activities, including turning rooms into launching pads and weapons depots.

Despite the difficulties, the Israel Defense Forces expects the terror group to be able to operate without regular cash supplies for several more months, due to the large amounts of cash it holds from Hezbollah’s entry into the war. The period will be influenced by the fact that Hezbollah’s spending is increasing sharply, coupled with the need for reconstruction. So far, no country has volunteered to provide reconstruction funds. Lebanon has already issued construction tenders, and in the absence of major international companies, companies linked to Hezbollah are the ones winning these projects. The proliferation of projects led by these companies as part of the reconstruction plan will deepen the terrorist organization’s grip on Iran rather than alienate it, but the US government has yet to act on the issue.

Türkiye also participates

Although Turkey plays the most central role in the fight against Hezbollah, the Nagel Commission recently warned that Israel and Ankara could come into conflict.

In one of the Israeli attacks on Hezbollah’s financial targets, a branch of a Lebanese exchange was attacked, but security officials are well aware that when they find one, they find many. Israel is therefore working to prove the link between Lebanon’s currency exchange and Hezbollah’s activities and bring about U.S. sanctions against these financial institutions.

Published by Globes, Israel Business News – en.globes.co.il – on January 14, 2025.

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