Israel begins destruction of Hezbollah’s banking system

The Israel Defense Forces (IDF) this week launched a major attack on Hezbollah’s funding pipeline, with a focus on al-Qad al-Hassan, which funds the Lebanese Shiite group’s terrorist activities. did. Lebanese media reported on the attacks over the past day with images of the destroyed al-Qaad al-Hassan bank branch in Beirut’s Dahieh district. Next to the bombed bank stands a statue of former Iranian Quds Force commander Qasem Soleimani, who was assassinated by the US in 2020.

Although many Israeli experts agree that the attack was a worthy endeavor and probably should have been carried out earlier, the former head of the Mossad’s economic warfare division, now in charge of Jerusalem argues Dr. Woody Levy, a senior fellow at the Institute for Strategic and Security Studies. There will be no immediate economic damage to Hezbollah.

Levi explains. “That fund hasn’t been there for a long time. Hezbollah has withdrawn the funds and assets and moved them underground. So the fund is probably not harmed.” However, Levy said the damage was, among other things, It is found in the message that the attack conveys. The message is “damage your softest belly – your money.” Without it, Hezbollah cannot rebuild. ”

Levy also points out that more damage is being done. “The important point from the terrorist organization’s point of view is that the IDF attack is expected to cause panic among the Shia population whose assets were entrusted to al-Qaad al-Hassan. It is now expected to demand withdrawal of funds,” and this could cause serious damage to Hezbollah, which is already in dire straits. He added, “Iranians understand that without money, Hezbollah will lose control over Lebanon.” That’s why Supreme Leader Ali Khamenei announced two weeks ago that half of the donations would go to Lebanon. They issued a religious ruling that said donations should be made to Hezbollah,” he added.

$480 million loan

Al-Qard Al-Hassan is not a bank in the classical sense. It was founded by Hezbollah itself in 1982. It offers three types of accounts to its customers and also provides interest-free loans in exchange for collateral (such as gold). But the bank has been under U.S. sanctions for 17 years, preventing it from accessing the global banking system directly.

These sanctions did not prevent banks from thriving. According to the Foundation for Defense of Democracies (FDD), the amount of loans by Al-Qaad Al-Hassan increased from $76.5 million in 2007 to $480 million in 2019. The Bankers Association’s total activities up to 2019 are estimated to be approximately $500 million. 3.5 billion dollars. According to Israeli Defense Ministry estimates, Hezbollah kept hundreds of millions of dollars in the association’s approximately 31 branches.

How was a terrorist organization able to do this despite sanctions? Al-Qard Al-Hassan operates a “personal” account in a fully-fledged Lebanese bank. When Iran wants to send money to terrorist organizations and their people, it does so through various Lebanese bank accounts. Employees of Alucard Alhassan were secretly working there, withdrawing money and depositing it with the association. The U.S. Treasury Department is aware of this method and has personally sanctioned six Hezbollah Association employees for using this method to transfer more than $500,000 within a 10-year period.

“Israel must continue to target funds and send a clear message to Lebanese banks not to cooperate with Hezbollah,” Levy said. “During my time in office, I have put pressure on the Americans to put pressure on Lebanese banks. Now the bankers who supported Hezbollah are fleeing Lebanon.”

“Ports and airports should be closed.”

Hezbollah’s annual budget is about $1 billion, of which about 70% comes from Iran and about 30% from illegal activities, most of which are based on drug trafficking around the world. These activities are carried out in cooperation with the Assad regime, mainly in Syria, but also in Central and South America, West Africa, and elsewhere.

An investigation by French newspaper Le Monde published last week found that al-Qaad al-Hassan is being used by Shiite terrorist organizations to raise funds from Lebanese communities in Ivory Coast and Guinea, among others. It turns out. drug sales. Levy said most of the money for Hezbollah’s drug industry in West Africa and Latin America arrives in Beirut through the airport and seaport.

“Israel must close its ports and airports,” he says, “which would enable Hezbollah’s economic collapse. “If we carry out the action, it will also carry out a symbolic action of attacking Hezbollah’s drug factories.” It sends a message that we are directly addressing money flowing to industry, and if this happens, it will create a new reality that sends a clear message to Iranians. our crosshairs. ”

“Even if we don’t win the prize, the message is clear.”

The IDF attack on Hezbollah’s financial systems was carried out hours before U.S. envoy Amos Hochstein returned to Beirut following Israel’s request for a cessation of fighting in Lebanon. According to a report in Asharq al-Awsat, an Arabic-language newspaper published in London, Hochstein plans to use diplomatic channels to present a request to Israel for a cessation of hostilities, with a central focus on Israel’s commitment to the conflict. It is to recognize freedom of action. New consolidation of Hezbollah in border areas.

Levy said Israel now has a rare opportunity to significantly undermine Hezbollah’s credibility with the Lebanese population, including the Shiite population. “Terrorist organizations felt comfortable sending property taxes and providing aid to destroyed Shia homes after Israeli attacks, but the moment financial problems arose, they began to control the population. Lose your power.”

Levy said the move against al-Qad al-Hassan also has a message for Iran. “Damage to strategic economic assets is significant. Even if damage to funds cannot be achieved, the message is clear: Economics is psychology after all. It is expected that there will be a huge uproar between the two parties regarding money matters with Al-Qaad Al-Hassan. ”

Published by Globes, Israel Business News – en.globes.co.il – on October 21, 2024.

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