| Al-Qard Al-Hasan Association | |
| Type: | Non-profit financial institution; Hezbollah’s de facto banking arm |
| Industry: | Financial services |
| Founder: | Hezbollah social services |
| Hq Location City: | Beirut |
| Hq Location Country: | Lebanon |
| Locations: | approx. 30 branches |
| Area Served: | Shias in Lebanon |
| Products: | Interest-free loans, money transfer, pawn broker, microfinance; allegedly money laundering |
| Owner: | Hezbollah |
Al-Qard Al-Hassan (AQAH) or Al-Qard Al-Hasan Association (ar| جمعية مؤسسة القرض الحسن|lit= the benevolent loan) is a Hezbollah-affiliated non-profit financial institution, that provides interest-free loans and other financial services to the Lebanese Shia community,[1] providing support amidst widespread poverty.[2] It is based on the Islamic principle of interest-free loans of the same name (Qard al-Hasan).[3]
It also functions as Hezbollah’s de facto banking arm, used by Hezbollah to move funds through a network of shell accounts and facilitators.[4] [5] It is believed to hold billions in assets and cash, and is believed to be Hezbollah's main money laundering institution.[6] The quasi-banking system has been accused of being used to fund Hezbollah's military wing.[7] [8]
It has approximately 30 branches and its own ATM network in Lebanon, including in the Dahieh neighborhood controlled by Hezbollah.[5] It is not regulated by the Lebanese central bank.[8]
The association has been sanctioned by the United States due to its ties to Hezbollah since 2007.[9] In October 2024 the association was targeted by Israeli airstrikes.[10]
The organisation was established in 1982.[11] Its primary goal at the time was supporting the Lebanese Shiite community that were affected by the hardships of the Lebanese Civil War. It was officially registered as a social association in 1987. Its primary role was to provide loans, typically secured by gold collateral, to individuals who may not have access to traditional banking services due to Lebanon's ongoing liquidity crisis and the collapse of its banking sector.[2]
Since 2007, due to its ties to Hezbollah, Al-Qard has been subject to sanctions by the U.S. Treasury Department, which designates Hezbollah as a terrorist organization.[12] The U.S. Treasury Department says that it has been used by Hezbollah as "a cover to manage the terrorist group’s financial activities and gain access to the international financial system." These sanctions limit Qard Al-Hassan's access to international financial systems and complicate its operations outside of Lebanon. The organization is often described as Hezbollah's financial arm, providing microfinance services to individuals and small businesses in Lebanon.[13]
In 2021 the US Treasury Department said it: "purports to serve the Lebanese people," but that it in reality "illicitly moves funds through shell accounts and facilitators" in Hezbollah’s "shadow banking" network.[5] That year, the Treasury Department hardened its sanctions, saying that the association was "hoarding hard currency that is desperately needed by the Lebanese economy" and compromising the stability of Lebanon.
See also: Dahiya doctrine. In October 2024, the association buildings in Beirut were hit by Israeli airstrikes due to its role as part of the financial infrastructure of Hezbollah. Israel’s military said that the banking association "directly funds Hezbollah’s terror activities," including the purchase of "weapons and payments to operatives in Hezbollah’s military wing," a claim Hezbollah denies, saying it has no role other than providing small, interest-free loans to ordinary Lebanese, in line with Islamic law's ban on receiving interest. Amal Saad, a leading expert on Hezbollah, believes that the aim of these attacks is to destroy what is also known as the Hezbollah’s "community of resistance."[14] Dahiya doctrine is an Israeli military strategy involving the large-scale destruction of civilian infrastructure, or domicide, to pressure hostile governments.[15]
Despite being registered as a charitable organization, Qard Al-Hassan has been accused of operating more like a bank,[16] acting outside the regulation and control of the Lebanon's central bank, the Banque du Liban,[17] potentially serving as a channel for money laundering.[18] [19] [20]