Wikipedia

Al-Qard Al-Hasan Association

For the concept for which this institution is named, see Qard al-Hasan.

Al-Qard Al-Hassan (AQAH) or Al-Qard Al-Hasan Association (Arabic: جمعية مؤسسة القرض الحسن, lit. 'the benevolent loan') is a Hezbollah-affiliated non-profit financial institution, that provides interest-free loans and other financial services to the Lebanese Shia community,[1] providing support amidst widespread poverty.[2] It is based on the Islamic principle of interest-free loans of the same name (Qard al-Hasan).[3]

Al-Qard Al-Hasan Association
Company typeNon-profit financial institution; Hezbollah’s de facto banking arm
IndustryFinancial services
Founded1982; 42 years ago (1982)
FounderHezbollah social services
Headquarters
Beirut
,
Lebanon
Number of locations
approx. 30 branches
Area served
Shias in Lebanon
ProductsInterest-free loans, money transfer, pawn broker, microfinance; allegedly money laundering
OwnerHezbollah
Websiteqardhasan.org

It also functions as Hezbollah’s de facto banking arm, used by Hezbollah to move funds through a network of shell accounts and facilitators.[4][5] It is believed to hold billions in assets and cash, and is believed to be Hezbollah's main money laundering institution.[6] The quasi-banking system has been accused of being used to fund Hezbollah's military wing.[7][8]

It has approximately 30 branches and its own ATM network in Lebanon, including in the Dahieh neighborhood controlled by Hezbollah. [5] It is not regulated by the Lebanese central bank.[8]

The association has been sanctioned by the United States due to its ties to Hezbollah since 2007.[9] In October 2024 the association was targeted by Israeli airstrikes.[9][10]

History

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Foundation and early years

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The organisation was established in 1982.[11][1] Its primary goal at the time was supporting the Lebanese Shiite community that were affected by the hardships of the Lebanese Civil War.[3][8] It was officially registered as a social association in 1987. Its primary role was to provide loans, typically secured by gold collateral, to individuals who may not have access to traditional banking services due to Lebanon's ongoing liquidity crisis and the collapse of its banking sector.[11][2]

2007 US sanctions

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Since 2007, due to its ties to Hezbollah,[12] Al-Qard has been subject to sanctions by the U.S. Treasury Department, which designates Hezbollah as a terrorist organization.[13][8] The U.S. Treasury Department says that it has been used by Hezbollah as "a cover to manage the terrorist group’s financial activities and gain access to the international financial system."[8] These sanctions limit Qard Al-Hassan's access to international financial systems and complicate its operations outside of Lebanon.[13] The organization is often described as Hezbollah's financial arm,[11][2] providing microfinance[11][1] services to individuals and small businesses in Lebanon.[3][14]

In 2021 the US Treasury Department said it: "purports to serve the Lebanese people," but that it in reality "illicitly moves funds through shell accounts and facilitators" in Hezbollah’s "shadow banking" network.[5] That year, the Treasury Department hardened its sanctions, saying that the association was "hoarding hard currency that is desperately needed by the Lebanese economy" and compromising the stability of Lebanon.[8]

2024 Israeli airstrikes

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See also: Dahiya doctrine

In October 2024, the association buildings in Beirut were hit by Israeli airstrikes due to its role as part of the financial infrastructure of Hezbollah.[9] Israel’s military said that the banking association "directly funds Hezbollah’s terror activities," including the purchase of "weapons and payments to operatives in Hezbollah’s military wing,"[8] a claim Hezbollah denies, saying it has no role other than providing small, interest-free loans to ordinary Lebanese, in line with Islamic law's ban on receiving interest. Amal Saad , a leading expert on Hezbollah, believes that the aim of these attacks is to destroy what is also known as the Hezbollah’s "community of resistance."[15] Dahiya doctrine is an Israeli military strategy involving the large-scale destruction of civilian infrastructure, or domicide, to pressure hostile governments.[16]

Controversy

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Despite being registered as a charitable organization,[3][11][1] Qard Al-Hassan has been accused of operating more like a bank,[11][17] acting outside the regulation and control of the Lebanon's central bank, the Banque du Liban,[12][17] potentially serving as a channel for money laundering.[18][19][20]

References

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  1. ^ a b c d "Al-Qard al Hassan, la microfinance résistante - Salah Hijazi". Commerce du Levant (in French). 24 November 2020. Retrieved 3 October 2024.
  2. ^ a b c Torbey, Natasha Metni (17 February 2023). "Al-Qard al-Hassan: le réseau illégal du Hezb qui ronge l'économie". Ici Beyrouth (in French). Retrieved 2 October 2024.
  3. ^ a b c d "Hezbollah's Al-Qard Al-Hassan, Explained". www.the961.com. 4 January 2021. Retrieved 2 October 2024.
  4. ^ "Blasts heard across Beirut after Israel warns it will hit Hezbollah-linked finance group". The Guardian. 21 October 2024. Retrieved 21 October 2024.
  5. ^ a b c "Israel Strikes Hezbollah-Affiliated Financial Institution in Lebanon," The New York Times.
  6. ^ Ari, Lior Ben (20 October 2024). "What is Al-Qard al-Hassan association, now a target of IDF?". Ynetnews. Retrieved 21 October 2024.
  7. ^ "What is the financial institution affiliated with Hezbollah that Israel is targeting in Lebanon". PBS. 21 October 2024.
  8. ^ a b c d e f g Baker, Aryn (21 October 2024). "What Is Al-Qard al-Hasan, the Hezbollah-Linked Finance Group Targeted by Israel?". The New York Times.
  9. ^ a b c Staff (21 October 2024). "Blasts heard across Beirut after Israel warns it will hit Hezbollah-linked finance group". The Guardian. ISSN 0261-3077. Retrieved 21 October 2024.
  10. ^ "Israeli attacks on Hezbollah financing show group's reach in Lebanon". Washington Post.
  11. ^ a b c d e f NOWLEBANON (30 May 2023). "The legal and financial implications of Al Qard Al Hassan". Nowlebanon. Retrieved 2 October 2024.
  12. ^ a b "Lebanese Forces MPs ask judiciary to open an investigation into Al-Qard Al-Hasan". L'Orient Today.
  13. ^ a b "US-sanctioned Hezbollah's Qard al-Hasan installs ATMs, violating Lebanon's fiscal law". Al Arabiya English.
  14. ^ "Hezbollah-linked financial firm an economic lifeline for Lebanese". Radio France Internationale (RFI). 21 October 2024.
  15. ^ "What is Israel's strategy in targeting Hezbollah's civilian network?". BBC.
  16. ^ Byman, Daniel (2011). "What Israel can Teach the World and What Israel should Learn". A High Price. pp. 362–382. doi:10.1093/acprof:osobl/9780195391824.003.0026. ISBN 978-0-19-539182-4. p. 364: the threat to destroy civilian infrastructure of hostile regimes, as Israel did to the Dahiya neighborhood of Beirut, where Hizbollah was headquartered in 2006
  17. ^ a b Topalian, By Nohad. "Hizbullah expands financial activity via Al-Qard al-Hasan foundation". Al-Mashareq. Retrieved 3 October 2024.
  18. ^ ""القرض الحسن".. بنك حزب الله لغسل الأموال | إرم نيوز". www.eremnews.com (in Arabic). Retrieved 3 October 2024.
  19. ^ منير يونس. "القرض الحسن: مصرف ظلّ أسود موازٍ... كيف ولماذا؟". نداء الوطن.
  20. ^ ""القرض الحسن" تتوسع في لبنان ومخاوف من اختراقها النظام المصرفي العالمي". اندبندنت عربية (in Arabic). 21 February 2023. Retrieved 3 October 2024.
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