Hezbollah has launched a new political confrontation in Lebanon, targeting recent legal measures introduced by Minister of Justice Adel Nassar, and Karim Souaid, Governor of Banque du Liban (BDL).
These steps are part of broader government efforts to restrict the use of cash in the economy and implement financial and administrative reforms. The move adds to ongoing tensions over Hezbollah’s refusal to surrender its weapons in line with a cabinet decision mandating exclusive state control of arms and assigning enforcement to the army.
In a speech on Tuesday, Hezbollah’s Secretary-General Naim Qassem said: “The Central Bank governor is not an employee of the United States to restrict people’s access to their own money. The government must put an end to this.”
He also accused the justice minister of “acting as a judicial officer for the US and Israel,” adding that “Lebanon is not an American-run prison.”
Qassem said Hezbollah rejects “any attempt to place the country under foreign control,” insisting that state institutions must act “under the authority of the Lebanese government, for the benefit of its people.”
Tensions with the Central Bank erupted after Souaid issued Circular No. 170, banning the entry of funds into the formal banking sector if their source is any Lebanese entity subject to international sanctions, particularly those from Office of Foreign Assets Control (OFAC) in the United States.
The measure directly affects Al-Qard Al-Hasan Association, a financial institution affiliated with Hezbollah, effectively prohibiting banks from dealing with it.
The dispute with the justice minister arose after he instructed notaries to verify that all parties involved in legal transactions are not listed on national or international sanctions lists and to refuse transactions if any party is sanctioned.
The directive also requires declaring the source of funds in contracts. This would bar notaries from processing transactions for individuals or entities on sanctions lists - many of whom are linked to Hezbollah or do business with it.
Hezbollah saw the measures as part of what it calls a “financial siege” aimed at weakening the group. Party-affiliated sources argued that the circulars discriminate against certain citizens, depriving them of civil rights without judicial rulings. They also claimed that the regulations violate banking secrecy by requiring disclosure of fund sources.
However, legal and governmental sources framed the measures differently, pointing to international pressure to tighten financial oversight in Lebanon. They noted that the United States and its allies are pushing Beirut to enforce international sanctions more rigorously, particularly regarding Al-Qard Al-Hasan.
Ministerial sources rejected accusations of targeting Hezbollah, stressing that the justice ministry’s circular is part of efforts to combat the informal cash economy, which has grown since Lebanon’s 2019 financial crisis. “The directive aims to ensure compliance with international standards and curb uncontrolled cash transactions,” the sources told Asharq Al-Awsat.
They added that a detailed explanation of implementation procedures will soon be issued, requiring notaries to consult BDL’s Special Investigation Commission for lists of sanctioned individuals before completing transactions.
The government’s actions come ahead of a crucial meeting of Financial Action Task Force (FATF) in Paris, and a regional session in Bahrain. According to financial sources, Lebanon seeks to demonstrate compliance with international obligations to avoid being downgraded from the “grey list” to the “black list.”
The Central Bank is preparing a report outlining 11 steps taken to strengthen financial controls, including the justice ministry’s circular. Compliance, the sources said, would likely keep Lebanon on the grey list, signaling cooperation without triggering harsher international restrictions.
