Lebanon’s central bank banned licensed financial institutions from any direct or indirect interactions with Hezbollah’s financial institution Al-Qard Al-Hassan, according to a circular seen by Reuters on Tuesday.
Lebanon’s central bank has banned banks and brokerages from dealing with a Hezbollah-affiliated financial institution, according to a circular, a sign of the group’s diminished sway over state affairs since its devastating war with Israel.
Hezbollah has faced mounting pressures since the war, including financial ones.
In the circular, dated Monday and reviewed by Reuters, Banque du Liban prohibited all licensed financial institutions in Lebanon from dealing directly or indirectly with unlicensed entities and listed Hezbollah’s Al-Qard Al-Hassan as an example.
U.S. Special Envoy Thomas Barrack described the move in a post on X on Tuesday as a “step in the right direction.”
The ban follows a visit by the U.S. envoy to Beirut , where he received Lebanon’s reply to a U.S. proposal on disarming Hezbollah.
“Transparency and alignment of all financial intermediaries in Lebanon under the supervision of the Central Bank is a valued and necessary accomplishment,” he said.
Central Bank chief reportedly promised on Friday to shut down Hezbollah’s “Al-Qard Al-Hassan Association”
Reuters