Israel Strikes at Hezbollah’s Iran-Backed Banks in Lebanon

Peloni:  Nothing like properly incentivizing the Lebanese to act in their own interest.  Now let’s see if they will do so, of if they will remain on the sidelines.

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FDD | October 21, 2024

Latest Developments

Hezbollah has stockpiled up to half a billion dollars in cash in a secret bunker under a Beirut hospital, Israel revealed on October 21. In a televised briefing, Israel Defense Forces (IDF) spokesperson Rear Adm. Daniel Hagari said that a site hidden under a residential building in the Bekaa Valley and used to store cash and gold worth tens of millions of dollars was among the targets in Lebanon struck by the Israeli Air Force (IAF) on October 20. But, he added, as yet untouched was a stockpile of up to $500 million in cash and gold in a secret Hezbollah command bunker located under al-Sahel General Hospital in the Lebanese capital.

Hagari said that Hezbollah — spearheaded by its Unit 4400, which coordinates arms and financial deliveries from Iran — raises funds through sales of Iranian oil in Syria as well as flying in cash directly from Tehran to Beirut, where it is disbursed at the Iranian embassy. Monies are also raised through gas exports to Syria and other business ventures in the region and by drawing donations for fake charities.

Having eliminated Unit 4400 chief Muhammad Jafar Qassir in Beirut on October 1, Israeli forces on October 21 killed his successor in Syria, Hagari said, without naming the second man. Syria’s Defense Ministry earlier said two people had been killed in a strike on a car in Damascus.

On October 20, the IAF conducted precise airstrikes against “facilities and sites” operated by al-Qard al-Hassan (AQAH) Association — a financial institution “which directly funds Hezbollah’s terror activities, including the purchase [of] weapons and payments” to Hezbollah operatives. IDF Chief of the General Staff Lt. Gen. Herzi Halevi said that nearly 30 targets were struck across Lebanon targeting AQAH, “which receives funds from Iran, provides loans, and ultimately finances Hezbollah’s terrorism.” Strikes were reported in Beirut’s southern suburbs, especially the Dahiya area — the hub of Lebanon’s Shia community. The IAF also struck AQAH facilities in southern Lebanon and the Bekaa Valley.

On October 21, Israeli Defense Minister Yoav Gallant signed an order declaring AQAH a terrorist organization. According to a senior Israeli intelligence official, Iran provided AQAH with approximately $50 million a month.

Expert Analysis

“Having cut down Hezbollah’s personnel and materiel, Israel is now going for its pocketbook. It’s possible, however, that ordinary Lebanese will get there first. Is there anything more galling than a foreign-commanded mafia posing as a religious group and storing hard cash while the rest of the country starves?” — Mark Dubowitz, FDD CEO

“In theory, this is a significant blow to Hezbollah’s warfighting capabilities and ‘day after’ ability to regenerate — which will depend on Hezbollah’s social arms having the funds to provide its base with reconstruction aid and other assistance. In the long run, Hezbollah will also need to revive its vast social apparatuses that act as conveyor belt mechanisms to draw immediate and long-term support. The question is: Has Hezbollah already moved its funds, either at the outset of the conflict or after its intensification since mid-September? Or did the IDF’s warning yesterday, hours before strikes commenced, give Hezbollah sufficient notice to move its money?” — David Daoud, FDD Senior Fellow

“AQAH is Hezbollah’s bank and, alongside Bayt al-Amal, a key conduit of its illicit financial operations. Due to its charitable status, AQAH has eluded banking oversight and has successfully hoarded the hard currency it uses as leverage on Lebanon’s population, especially at a time when the local financial system is crumbling. It is also a major channel for the transfer of illicit funds from Hezbollah’s overseas financial networks back to Lebanon.” — Emanuele Ottolenghi, FDD Senior Fellow

10 Things to Know About Hezbollah,” FDD Insight

How Hezbollah Fundraises Through Crime,” by Emanuele Ottolenghi

Hezbollah’s al-Qard al-Hasan and Lebanon’s Banking Sector,” by Tony Badran and Emanuele Ottolenghi

October 21, 2024 | Comments »

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