Israel has intensified airstrikes targeting branches of al-Qard al-Hasan, a financial institution closely linked to Hezbollah early Monday morning, October 22. This is part of a broader mission by Israel to disrupt the financial and military support networks of the Iranian-backed Lebanese resistance group.
According to the official National News Agency, Israeli strikes hit Al-Qard al-Hassan branches in the cities of Nabatieh and Tyre in southern Lebanon overnight.
The Israeli military on Monday said that it carried out a series of attacks on “dozens of targets and facilities” owned by Hezbollah in Beirut and southern Lebanon, where branches of the financial institution were attacked by the military to reduce Hezbollah’s funding capabilities. Israel alleges that Al-Qard al-Hassan supports “Hezbollah’s terror operations”, which entails procuring weapons and paying its members.
Israeli military spokesman, Rear Admiral Daniel Hagari, added that one of the primary targets was a vault located beneath a residential building in Beirut. He claimed that the vault, which contained “tens of millions of dollars” was meant for Hezbollah’s military activities.
On the same day, Israeli defence minister Yoav Gallant formally declared al-Qard al-Hasan a “terrorist organisation” thus economically sanctioning it further.
What is al-Qard al-Hasan?
Al-Qard al-Hasan was established in 1982 as a non-profit organization aimed at providing interest-free loans based on Islamic finance principles, which prohibit usury. Al-Qard al-Hasan, often translated as “benevolent lending” its initial purpose was to offer small loans, typically no more than 5,000, dollars to individuals in need.
The institution developed over time and expanded its services in the area of financial services offering services such as savings accounts, financial transfers and payment services. Currently, it has over 30 branches throughout Lebanon mainly in the Shiite-dominated Beirut and the Bekaa.
More specifically, al-Qard al-Hasan is a charity organization that also has a far more intricate role in Hezbollah’s financial ecosystem. The US Department of the Treasury designated the institution as a “terrorist entity” in 2007 accusing it of providing financial services to Hezbollah through money laundering and financing arms purchases.
In contrast to traditional banks that limited withdrawals to the extent that they could produce adverse effects on the customers, al-Qard al-Hasan empowered the clients by allowing them to withdraw their money. This made the institution even more popular among low-income Lebanese citizens, especially in the areas where Hezbollah has a significant influence.
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