US Treasury: ‘Qard al Hasan’ Threatens Credibility of Lebanese Financial System

Lebanese President Michel Aoun during his meeting with the US Treasury delegation (Dalati and Nahra)
Lebanese President Michel Aoun during his meeting with the US Treasury delegation (Dalati and Nahra)
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US Treasury: ‘Qard al Hasan’ Threatens Credibility of Lebanese Financial System

Lebanese President Michel Aoun during his meeting with the US Treasury delegation (Dalati and Nahra)
Lebanese President Michel Aoun during his meeting with the US Treasury delegation (Dalati and Nahra)

The US Department of the Treasury warned that the Lebanon-based “Qard al Hassan” is an unregulated and pseudo-financial institution that provides cover to Hezbollah’s activities, jeopardizing the credibility of the Lebanese financial system.

A senior delegation from the Treasury concluded a three-day visit to Lebanon on Wednesday.

The delegation met with members of the Lebanese government, civil society, and the banking sector to reiterate the US government’s commitment to stand with the Lebanese people during this time of economic turmoil.

According to a statement released by the Treasury, the delegation encouraged the work of the Lebanese government to develop a possible International Monetary Fund (IMF) supported program, and it noted that such a program could help restore much needed confidence in the economic system.

The delegation raised the crippling nature of systemic corruption and identified specific areas critical to address the lack of transparency and accountability in its meetings with the public and private sector, emphasizing that addressing corruption in Lebanon is a prerequisite to tackling the governance and economic crisis.

Government and bank officials were urged to ensure that any financial recovery plan maximizes the returns to Lebanese depositors, especially those with relatively smaller accounts, while emphasizing the need for swift action toward improving the financial system.

The delegation emphasized the need for the Lebanese government to implement deep, meaningful reforms prior to the elections.

The delegation highlighted US-designated “Qard Al Hasan” as one example of an unregulated, pseudo-financial institution that abuses its Ministry of Interior-granted NGO license and provides cover to Hezbollah’s financial activity, jeopardizing the credibility of the Lebanese financial system.

The delegation also raised concerns about abuses within the banking system by members of the political and economic elite.

They emphasized the need to make serious efforts to investigate those abuses, particularly by the Banque du Liban and the Special Investigation Commission.

They pressed for the appropriate authorities to conduct investigations and perform due diligence on any related transactions.



RSF Shelling On Camp Kills 8 in Sudan's Darfur, Say Rescuers

A view of a street in the city of Omdurman damaged in the year-long civil war in Sudan, April 7, 2024. REUTERS/El Tayeb Siddig
A view of a street in the city of Omdurman damaged in the year-long civil war in Sudan, April 7, 2024. REUTERS/El Tayeb Siddig
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RSF Shelling On Camp Kills 8 in Sudan's Darfur, Say Rescuers

A view of a street in the city of Omdurman damaged in the year-long civil war in Sudan, April 7, 2024. REUTERS/El Tayeb Siddig
A view of a street in the city of Omdurman damaged in the year-long civil war in Sudan, April 7, 2024. REUTERS/El Tayeb Siddig

Rapid Support Forces (RSF) shelled a displacement camp in Sudan's Darfur region on Thursday, killing eight civilians and injuring others, a local rescue group said.

The bombardment hit Abu Shouk camp, which hosts tens of thousands of displaced people on the outskirts of El Fasher, the besieged capital of North Darfur.

El-Fasher remains the last major stronghold in Sudan's western Darfur region not under the control of the RSF, who have been at war with the regular army since April 2023, AFP reported.

"The Abu Shouk camp witnessed heavy artillery bombardment by the RSF... killing eight people," the camp's Emergency Response Room said in a statement.

In recent weeks, El-Fasher, which has been under RSF siege since last year, has been locked in intense fighting between warring sides in a region also gripped by famine.

Thursday's offensive comes just days after a series of attacks by the RSF targeted another battleground region of Sudan.

More than 450 people, including 35 children, were killed in several villages of North Kordofan, southwest of the capital Khartoum, according to a statement released this week by the UN's children agency.

"No child should ever experience such horrors," said UNICEF Executive Director Catherine Russell. "Violence against children is unconscionable and must end now."

On Sunday, the RSF claimed to have killed more than 470 army personnel near the town of El-Obeid, also in North Kordofan, in a statement posted to its Telegram channel.

Independent verification of casualties in Sudan remains difficult due to restricted access to its conflict zones.

Now in its third year, the conflict has killed tens of thousands and forced millions to flee, creating what the United Nations describes as the world's largest displacement crisis.

In December last year, famine was officially declared in three displacement camps near El-Fasher, namely Zamzam, Abu Shouk and Al-Salam, according to the UN.

Since the Sudanese army regained control of the capital Khartoum in March, the RSF has shifted its operations westward, focusing on Darfur and Kordofan in a bid to consolidate territorial gains.

In April, RSF fighters seized the Zamzam displacement camp, located near Abu Shouk.

The assault forced nearly 400,000 people to flee, according to UN figures, effectively emptying one of the country's largest camps for the displaced.

Sudanese analyst Mohaned el-Nour told AFP the RSF aims to redefine its role in the conflict.

"Their goal is no longer to be seen as a militia, but as an alternative government in western Sudan, undermining the legitimacy of the authorities in Port Sudan."

He added that the recent surge in violence in North Kordofan was likely intended to divert the army's attention from El Fasher, where the military is trying "at all costs" to maintain.