Warning to state: BDL moves to block dealings with Hezbollah's Qard al-Hassan

Report by Toni Mrad, English adaptation by Yasmine Jaroudi

The Banque du Liban (BDL) has once again placed the Hezbollah-affiliated financial institution Qard al-Hassan in the spotlight, renewing restrictions and warnings over dealings with unlicensed entities subject to international sanctions.

In July, BDL issued Circular 170, banning all licensed financial institutions under its supervision from engaging with Qard al-Hassan or similar organizations. Weeks later, the bank reiterated the directive, this time sending what observers described as a veiled message to the Lebanese government. 

The statement underscored that any organization or entity under international sanctions and not licensed by the BDL falls under the full responsibility of the state and the ministries empowered to intervene.

According to officials, the Interior Ministry is the primary authority responsible for granting legal recognition to associations and is therefore the body tasked with proposing the revocation of licenses when necessary.

Banking sources told LBCI that the BDL is continuing its efforts to curb the activities of associations and institutions included on U.S. sanctions lists. The sources also stressed the importance of ensuring strict compliance by all banks with Circular 170 and warned against any negligence in implementing the directive.