France Limits Access for People Causing Lebanon’s Political Stalemate

A view shows the site of the August 4 explosion at Beirut port, Lebanon February 18, 2021. REUTERS/Mohamed Azakir/File Photo
A view shows the site of the August 4 explosion at Beirut port, Lebanon February 18, 2021. REUTERS/Mohamed Azakir/File Photo
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France Limits Access for People Causing Lebanon’s Political Stalemate

A view shows the site of the August 4 explosion at Beirut port, Lebanon February 18, 2021. REUTERS/Mohamed Azakir/File Photo
A view shows the site of the August 4 explosion at Beirut port, Lebanon February 18, 2021. REUTERS/Mohamed Azakir/File Photo

France has started to put in place measures limiting access to French territory for people blocking the political process in Lebanon, French Foreign Minister Jean-Yves Le Drian said on Thursday.

Le Drian also said in a statement that France is taking similar measures for people involved in corruption in Lebanon.

Premier-designate Saad Hariri has not been able to form a cabinet six months after he was chosen for the post amid deep disagreements between him and President Michel Aoun.

One of the main points of difference includes Aoun’s rejection of Hariri’s plan to choose some Christian members of the new government.

The Free Patriotic Movement, which is headed by Gebran Bassil, who is also Aoun’s son-in-law, has also accused Hariri of trying to orchestrate a majority for his own supporters.

Hariri was nominated in October to form a cabinet after Hassan Diab’s government resigned in the wake of the Beirut port blast, which killed 200 people and damaged large swathes of the city.

Lebanon is experiencing its worst economic and financial crisis in its modern history following decades of widespread corruption. Since late 2019, the local currency has lost 90% of its value, and more than half of the country's population now lives in poverty, according to the World Bank.

With the European Union, Paris has been working on creating a sanctions regime for Lebanon that could ultimately see asset freezes and travel bans.

However, that is likely to take time. As part of efforts to raise pressure on key Lebanese actors, France intends to stop issuing visas to certain officials, diplomats have said.

"On a national basis, we have started to implement restrictive measures in terms of access to French territory against personalities involved in the current political blockage, or involved in corruption," Le Drian said in remarks alongside his Maltese counterpart.

Le Drian gave no names and it was not clear if the actual measures were already in place.

"It’s not just words in the air," said a French diplomat.

They (Lebanese officials) can reassure themselves that it’s not just threats."

Two diplomats said a list of names had been put together and people were being made aware.

"We reserve the right to adopt additional measures against all those who hinder the way out of the crisis and we will do so in coordination with our international partners," Le Drian added.



Lebanon Bans Dealing with Hezbollah Financial Entity

A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
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Lebanon Bans Dealing with Hezbollah Financial Entity

A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo
A view shows Lebanon's Central Bank building in Beirut, Lebanon April 4, 2025. REUTERS/Mohamed Azakir/File Photo

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.

Keeping up military pressure on the Iran-backed group, Israel on Tuesday launched some of its heaviest airstrikes since a ceasefire in November, saying it hit training camps and weapons depots in east Lebanon. A security source in Lebanon said 12 people were killed, five of them Hezbollah fighters, Reuters reported.

Hezbollah has faced mounting pressures since the war, including financial ones.

In the circular, dated July 14 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.

The US Department of Treasury imposed sanctions on Al-Qard Al-Hassan in 2007, saying Hezbollah used it as a cover to manage "financial activities and gain access to the international financial system".

Bolstered by its powerful arsenal, Hezbollah had long exercised decisive influence over Lebanese state affairs, but it was unable to impose its will in the formation of a post-war government in February.

Al-Qard Al-Hassan, founded in 1983, describes itself as a charitable organisation which provides loans to people according to Islamic principles that forbid interest. Israel struck some of its branches during its war with Hezbollah last year.

Operating as a not-for-profit organisation under a licence granted by the Lebanese government, it has more than 30 branches, mostly in southern Lebanon and the Bekaa Valley.

SHADOW ECONOMY

A Lebanese official said the central bank move had been in the works for months, and reflected US pressure on Lebanon to take action against Hezbollah's financial wing.

Nassib Ghobril, chief economist at Byblos Bank, said Lebanese banks were already careful to avoid dealing with Al-Qard Al-Hassan because it is under US sanctions.

"The important point is that finally the authorities are addressing the shadow economy in Lebanon, which is the real problem," he said, adding that authorities had long failed to address its "toxic effects".

In June, the European Commission included Lebanon in an updated list of high-risk jurisdictions presenting strategic deficiencies in their national anti-money laundering and countering the financing of terrorism.

Last year, global financial crime watchdog FATF placed Lebanon on its "grey list" of countries under special scrutiny.