Global Eye Intelligence

Overview
On October 20, 2024, Israeli airstrikes targeted Hezbollah’s financial stronghold, primarily the Al-Qard al-Hassan Association (AQAH)—a critical component of Hezbollah’s financial network in Lebanon. This move marks a significant shift in Israel’s strategy, focusing on crippling Hezbollah’s financial infrastructure to weaken its operations and grassroots influence.

Key targets included AQAH branches in Beirut’s Dahiyeh suburb, Nabatiyeh, Tyre, and the Bekaa Valley, regions closely associated with Hezbollah’s activities. While the strikes aim to disrupt Hezbollah’s economic lifeline, they have exacerbated Lebanon’s humanitarian crisis, displacing thousands of civilians and disrupting essential financial services.

Key Developments

  1. Destruction of AQAH Infrastructure
    • Israeli airstrikes destroyed multiple AQAH branches, severely disrupting Hezbollah’s financial operations.
    • The association’s proximity to civilian areas increased casualties and displacement, intensifying Lebanon’s ongoing crisis.
  2. Hezbollah’s Response
    • Hezbollah condemned the strikes as a direct attack on Lebanese sovereignty and accused Israel of targeting civilians under the guise of dismantling its financial network.
  3. Strategic Israeli Motive
    • Israeli officials claim the strikes aim to sever Hezbollah’s financial ties to Lebanon’s Shiite community, thereby undermining its grassroots support.
  4. Humanitarian Impact
    • The destruction of AQAH, which provides financial services to marginalized communities, has left thousands of Lebanese citizens without access to critical resources.

Hezbollah’s Financial Web: The Al-Qard al-Hassan Network

Revelations from the SpiderZ Hack

In December 2020, the SpiderZ hacking group exposed AQAH’s extensive financial operations, highlighting its role as a Hezbollah-funded institution circumventing international sanctions.

Key Findings:
  1. Collusion with Lebanese Banks
    • Banks like Byblos Bank and Société Générale de Banque au Liban (SGBL) were implicated in aiding AQAH, enabling Hezbollah to bypass sanctions and access international banking systems.
  2. Hawala Networks
    • AQAH leveraged informal hawala systems to facilitate money laundering, expanding its financial reach globally.
  3. Global Financial Operations
    • AQAH’s operations extended across Africa, Europe, the Gulf States, and North America, with transactions exceeding $3.5 billion since its establishment.
  4. Bank Saderat Iran’s Role
    • The Iranian bank acted as a financial ally, facilitating large transfers between Iran and Hezbollah, sustaining its operations despite sanctions.

Strategic and Humanitarian Implications

  1. Impact on Hezbollah’s Financial Network
    • Israel’s focus on AQAH represents a tactical shift to dismantle Hezbollah’s operational capabilities by targeting its financial lifelines.
  2. Civilian Fallout
    • The strikes have heightened Lebanon’s economic crisis, with thousands unable to access essential services. This risks rallying local support for Hezbollah, which may capitalize on the humanitarian fallout.
  3. Regional Escalation
    • The escalating conflict risks drawing in regional actors, potentially destabilizing West Asia further.
  4. Repercussions for Global Financial Systems
    • AQAH’s entanglement with international banking highlights the challenges in containing Hezbollah’s financial activities and raises concerns about global anti-money laundering efforts.

Conclusion

The airstrikes on Hezbollah’s financial network signify a deeper phase of the Israel-Hezbollah conflict, where financial infrastructure becomes a key battleground. While Israel’s strategy seeks to dismantle Hezbollah’s funding sources, the collateral damage to Lebanese civilians threatens to strengthen Hezbollah’s local support.

Coupled with revelations from the SpiderZ hack, the crisis underscores the fragility of Lebanon’s financial system and its susceptibility to exploitation by armed groups. Addressing these challenges requires a multilateral approach, balancing humanitarian needs with efforts to curb illicit financial activities in the region.

Keywords: #Israel #Hezbollah #AlQardAlHassan #LebanonCrisis #MiddleEastConflict #FinancialNetwork #HumanitarianImpact #SanctionsEvasion #WestAsiaTensions #GlobalBanking

Al Qard al HassanDownload