In a move carrying legal, financial, and political implications, Lebanon's justice minister has referred Al-Qard Al-Hassan, Hezbollah's financial arm, to the Public Prosecutor's Office, requesting the opening of an investigation into its financial activities.
The step revives a longstanding dispute between Hezbollah and state institutions over financial operations that function outside Lebanon's banking system and the extent to which they comply with the country's laws and regulations.
The referral comes as Lebanon faces growing international pressure over anti-money laundering and counterterrorism financing measures, alongside repeated calls for all financial and lending activities to be brought under the supervision of Banque du Liban and the relevant regulatory authorities.
Justice Minister Adel Nassar said the decision followed a ministry review of the matter.
"Based on a study conducted by the ministry, we reached conclusions and identified grounds that warranted placing the case before the Public Prosecutor's Office, which will now take the necessary steps," Nassar told Asharq Al-Awsat.
He added that the ministry had examined more than one issue and found sufficient reasons to make the referral, stressing that determining whether any offense had been committed was a matter for prosecutors.
"The ministry's role is limited to making a referral when information emerges that warrants an investigation," he said.
Internal Initiative, Not External Pressure
Al-Qard Al-Hassan has for years been subject to sanctions imposed by the US Treasury Department, which accuses it of providing financial services that support Hezbollah and its illicit activities. The institution is neither licensed nor recognized by Lebanon's banking authorities, while Banque du Liban has previously issued directives prohibiting licensed banks and financial institutions from dealing with it.
Asked whether the move resulted from requests by foreign parties, Nassar insisted that it stemmed from the ministry's own responsibilities and was not prompted by any external approach or demand.
"This is not limited to Al-Qard Al-Hassan," he said. "It also involves other entities, including Joud."
Nassar said the ministry's internal review had identified questions regarding the nature of the activities carried out by these entities and the financial operations that could stem from them.
He stressed that the judiciary would independently determine whether any violations or crimes had occurred and whether prosecution was warranted.
"That is a matter for the courts to decide, independently and without interference from any authority, including the Ministry of Justice," he said.
Investigation Taking Shape
Attention is now focused on the course of the judicial proceedings and whether they will lead to concrete decisions or legal measures against the institution or those responsible for running it.
A judicial source said Public Prosecutor Judge Rami Hajj received the referral on Monday and is currently reviewing it before setting dates for investigative sessions.
The source said the inquiry was likely to be complex and involve multiple authorities.
"Part of it may fall within the jurisdiction of General Security, while another part may involve the Interior Ministry in order to determine whether Al-Qard Al-Hassan's association license remains valid or has been suspended," the source told Asharq Al-Awsat.
The source added that if financial violations are established, part of the investigation would involve Banque du Liban and the Special Investigation Commission to determine the origin of the funds involved.
The move is widely seen as an important test of the Lebanese state's ability to enforce regulatory oversight over all financial institutions operating within the country, particularly after the financial collapse that struck the traditional banking sector in 2019.
That collapse was accompanied by the expansion of alternative financial networks, most notably Al-Qard Al-Hassan, which Hezbollah used to circumvent US sanctions. Over time, the institution developed into a de facto banking system serving the party and its support base, providing loans to thousands of clients in exchange for collateral including jewelry and real estate.
ATMs and Transfers Under Scrutiny
The case is also expected to trigger political controversy and draw a response from Hezbollah, which views mounting pressure on Al-Qard Al-Hassan as part of a broader campaign of sanctions and financial restrictions imposed on the group and its constituency for years.
That perception has been reinforced during the recent conflict, as the institution played a role in providing assistance to large numbers of displaced residents from southern Lebanon, Beirut's southern suburbs, and the Bekaa Valley.
The judicial source said Hezbollah was expected to cooperate with the investigation and provide evidence to demonstrate that the institution had not engaged in unlawful activity.
The source also disclosed that a delegation of Hezbollah lawmakers met the Public Prosecutor around two weeks ago and pledged to suspend the institution's ATM operations, as well as any transfer or deposit activities that might conflict with the scope of its authorized license.
