Judicial steps in Lebanon targeting financial entities linked to Hezbollah’s social and economic network are examined as part of broader state-building efforts and escalating legal scrutiny.
Hezbollah’s two lungs under investigation
While the world is preoccupied with the draft U.S.-Iran agreement, Lebanon’s process of “state-building” continues. Alongside political developments, a new judicial step has emerged that is expected to open another front of confrontation between the state and Hezbollah, given the sensitive role played by financial institutions operating within its social and economic environment.
In the middle of last week, Justice Minister Adel Nassar referred a request to the Public Prosecutor at the Court of Cassation, asking for an investigation into financial companies that operate in violation of the law, exceed the scope of their licenses, or operate without licenses altogether; particularly the activities of Al-Qard Al-Hassan Foundation and Joud Company. The request was based on domestic and international information concerning the nature of the foundation’s operations, its funding sources, and its financial mechanisms.
According to sources at the Ministry of Justice, Minister Nassar’s move comes within the framework of enforcing applicable laws, after more than three decades of chronic “denial” regarding the reality of certain legal practices. The sources stressed that the judiciary today enjoys clear independence and that its work should not be prejudged. They noted that the Justice Minister’s role is limited to referring files to the competent public prosecution and requesting legal action and investigation, without any authority to issue judgments or determine whether legal violations have occurred.
The sources explained that the minister’s letter to the Public Prosecution falls within his administrative powers and includes a request to investigate the activities of several companies suspected of operating outside the legal framework, including Al-Qard Al-Hassan and Joud Company. The Public Prosecution will then conduct investigations and take appropriate decisions based on the facts and findings that emerge.
Justice Ministry sources highlighted that the current phase reflects a change in the judicial climate toward significantly greater independence than in the past, with a noticeable decline in the political interference that had characterized earlier stages of judicial work.
Responding to a question from Nida Al Watan as to whether this step amounted to “throwing a fireball into the hands of the judiciary,” the sources stressed that what is taking place is a normal activation of the principle of enforcing the law, leaving it to the Public Prosecution to make the appropriate decision free from pressure or political considerations.
On 25 May 2026, Hezbollah Secretary-General Sheikh Naim Qassem warned against any interference with the operations of Al-Qard Al-Hassan. He stated that any discussion or action against the institution would be met with force and that people had the right to take to the streets, bring down the government, and defeat the American-Israeli project. He added that Hezbollah would treat those seeking to shut down the institution “as Israelis.”
Asked whether there were concerns about possible unrest in the streets, Justice Ministry sources told Nida Al Watan that no judicial process should be linked to political positions. Turning disputes into political considerations, they argued, would obstruct the process of state-building. They added: “Just as the issue of weapons remains a political matter, addressing any legal violation falls exclusively within the jurisdiction of the judiciary. The Justice Minister neither determines guilt nor innocence; he merely refers the case to the competent judicial authorities, which alone are responsible for investigating and making decisions, reflecting full respect for judicial independence.”
Reliable sources confirmed that the Public Prosecutor at the Court of Cassation, Judge Ahmad Rami Al-Hajj, had received the Justice Minister’s letter. The request was not accompanied by any supporting documents, and he is expected to study it over the coming days before deciding on the appropriate course of action.
It is worth noting that on 14 July 2025, Banque du Liban issued Circular No. 170, prohibiting licensed banks and financial institutions from engaging in any direct or indirect dealings with Al-Qard Al-Hassan. At the same time, the institution remains subject to Lebanon’s Associations Law, and no government decision has yet been issued revoking its license.
However, senior informed sources told Nida Al Watan that all parties, governmental and judicial alike, are expected to proceed cautiously in this matter, given the sensitivity of the current period and the risks of destabilizing the country.
The Justice Minister’s move comes as part of Lebanon’s effort to avoid moving from the Financial Action Task Force (FATF) gray list to the more severe black list, on the eve of the FATF annual meetings in Paris, which began on 15 June and continue through 19 June. Although international calls to shut down Al-Qard Al-Hassan have never ceased, the demand has now become part of the current U.S. policy agenda, as the institution is regarded as Hezbollah’s financial arm.
Al-Qard Al-Hassan and Joud
The Al-Qard Al-Hassan Foundation Association was established in Lebanon in 1982 in the Haret Hreik area of Beirut’s southern suburbs following the Israeli invasion of Lebanon. It received official licensing from the Lebanese Ministry of Interior in 1987. Closely linked to Hezbollah, it gradually evolved into a key financing instrument for the party and one of its most important economic and social arms. Its network expanded to approximately 40 branches.
During the most recent war, Israel targeted a number of Al-Qard Al-Hassan branches and facilities in Beirut, the southern suburbs, the Bekaa Valley, and southern Lebanon, including some locations not traditionally considered Shiite-majority areas. Thirty branches were destroyed. Nevertheless, the institution continued its operations and repaired several of the damaged branches.
As for Joud Financial Institution, which emerged in 2025, it is a commercial entity governed by commercial law. It was established as a replacement for Al-Qard Al-Hassan, serving as a financial entity that represents either a continuation or restructuring of Hezbollah’s financial activities under a new name amid mounting pressure and sanctions on non-banking institutions.
U.S. sanctions
The U.S. Treasury Department imposed sanctions on Al-Qard Al-Hassan on 24 July 2007, stating that it was used to manage Hezbollah’s financial activities and facilitate its access to the international financial system. Washington later expanded sanctions to include officials and entities associated with the organization.
In February 2026, the United States also imposed sanctions on Joud Gold Trading Company, which is linked to Al-Qard Al-Hassan. U.S. authorities stated that the company was used to ensure the flow of funds from Iran to Hezbollah and accused it of “amassing” foreign currency in order to “enable Hezbollah to build a supportive base.”
Against this backdrop, the Lebanese state appears to be facing a pivotal challenge that extends beyond a specific financial file or judicial measure. Rather, it concerns a broader effort to reestablish the primacy of institutions. The foundation of a healthy state begins with an effective and independent judiciary; one capable of operating beyond accusations of treason, threats to overthrow the government, or attempts to mobilize the streets.
