Barrack Welcomes Lebanese Central Bank Action on Hezbollah-Affiliated Financial Channels

U.S. envoy Tom Barrack on Tuesday praised the Lebanese central bank's latest move to curb illicit financial activity linked to Hezbollah, calling the decision to restrict dealings with entities like Al-Qard Al-Hassan “a step in the right direction.”

In a post on his official X account, Barrack said the government’s effort to contain the financial flows of Hezbollah through the unlicensed lending association marks a meaningful advance toward financial transparency.

“A step in the right direction by the Lebanese government in harnessing the flow of Hezbollah militia finances that had been directed thru Al-Qard Al-Hassan,” Barrack wrote. “Transparency and alignment of all financial intermediaries in Lebanon under the supervision of the Central Bank is a valued and necessary accomplishment.”

His comments came after Banque du Liban issued a directive banning banks, financial institutions, and all licensed financial intermediaries from conducting any transactions with Al-Qard Al-Hassan and other non-licensed entities listed on international sanctions lists. 

Al-Qard Al-Hassan, which operates outside the formal banking system, has long been accused by Western officials of acting as a financial arm of Hezbollah, helping funnel funds to the Iran-backed group under the guise of charitable loans. The U.S. Treasury Department sanctioned the organization in 2007, and reiterated in recent years that it poses a risk to Lebanon’s financial system.