Israel sanctions dozens of clients of Hezbollah's banking network

"We will lay our hands on all those who support terror, on every front and with every means," said Defence Minister Israel Katz said in a statement, saying the move's goal was to "collapse the terror networks and hit those who provide them economic oxygen."

The ministry did not name the targeted entities, but said "deposited significant amounts with the association, which directly funds the activities of the declared terror organisation Hezbollah." The ministry said money deposited with the Al-Qard al-Hassan Association (AQAH) is used to purchase weapons and pay the salaries of Hezbollah terrorists, among other things.

Israeli airstrikes targeted 20 of AQAH's 34 branches in key Hezbollah strongholds, including Beirut, Tyre, Sidon and Baalbek on October 20.

In comments to The Press Service of Israel after the strikes, one senior figure in the Israeli intelligence community described AQAH as "one of the largest centres of economic power for the Iranian proxy." She also suggested that its competition with the Lebanese banking sector contributed to the country's economic instability, while Hezbollah benefitted from a parallel, unregulated financial system.

AQAH, often referred to as Hezbollah's "bank," is technically a charitable association.

Established in 1982, AQAH expanded significantly to 34 branches against the backdrop of Lebanon's economic crisis. It specialises in providing microloans to Lebanon's Shiite community, which predominantly supports Hezbollah. These loans serve various needs, from wedding expenses to agricultural development and solar energy farms.

By further financing hospitals, schools, housing and other Hezbollah social services in areas where traditional banking services are inaccessible or distrusted, AQAH bolstered Hezbollah's ability to act as a "state within a state."

According to Israeli officials, AQAH is believed to handle approximately $500 million in transactions each year, with a total turnover of $3.5 billion recorded before 2019. The group's financial activities have drawn scrutiny due to suspected connections with Iran, which is a major financier of Hezbollah.

In addition to providing loans, the bank allegedly serves as a means of laundering funds for terrorism-related activities. The U.S. Treasury Dept. sanctioned AQAH in 2007.

After the Hamas attacks of October 7, 2023, Hezbollah began launching rockets and launching drones at northern Israel communities daily. More than 68,000 residents of northern Israel are displaced from their homes. Hezbollah leaders have repeatedly said they would continue the attacks to prevent Israelis from returning to their homes.

According to United Nations Security Council Resolution 1701, which ended the 2006 Second Lebanon War, Hezbollah is forbidden from operating in southern Lebanon south of the Litani River.

At least 1,200 people were killed, and 252 Israelis and foreigners were taken hostage in Hamas's attacks on Israeli communities near the Gaza border on October 7. Of the 97 remaining hostages, more than 30 have been declared dead. Hamas has also been holding captive two Israeli civilians since 2014 and 2015, and the bodies of two soldiers killed in 2014. (ANI/TPS)