Israel has expanded warnings about financial networks linked to Hezbollah, focusing attention on Lebanon’s money exchange sector as a potential flashpoint in the ongoing conflict.

On Wednesday, the Israeli military issued a warning naming specific Lebanese money exchangers it accused of funneling funds to the group. Israeli army spokesperson Avichay Adraee emphasized that individuals and networks continuing to finance Hezbollah faced “direct and immediate” risks. The army also said it struck two currency exchange shops in Beirut this week, claiming they had been transferring funds to Hezbollah “used for terror activity.”

“Hezbollah’s systematic use of money exchange offices for terror financing and money laundering… remains one of the group’s primary methods to channel and conceal Iranian funds,” the Israeli military said in a statement.

The warning marks a notable move by Israel, which has increasingly targeted both Hezbollah’s military and financial infrastructure in an effort to cut the group off from revenue and support.

Lebanese media sources report that the individuals named in the Israeli warnings are not licensed money exchangers and do not appear in records maintained by the Lebanese Exchange Association or the central bank, Banque du Liban. Observers say this lack of formal documentation has fueled uncertainty and cast doubt on the authorities’ ability to monitor and curb illicit financial activity.

A senior Lebanese government source told kataeb.org that Lebanon is facing multiple internal crises—from chronic electricity shortages and press freedom concerns to civil security challenges and entrenched corruption—that complicate efforts to tackle major financial and judicial issues, including illicit networks.

“With thousands of lawsuits pending, including high-profile commercial and regulatory cases, some parties continue to attack the judiciary and offer superficial critiques of its performance,” the source said. “The State must prioritize market regulation and safeguard the national economy.”

“Immediate action will be taken once we have all the necessary data,” stressing that Banque du Liban must provide accurate information to enable a swift response.

Money exchange networks are a critical component of Lebanon’s financial system because they connect the formal economy with informal—and sometimes illicit—flows of capital. Experts warn that such networks can move funds outside formal oversight, a concern intensified by Israel’s recent statements, which reflect rising regional tensions and their direct impact on Lebanon’s financial sector.

“The recent statements from Israel highlight the urgent need for strict and transparent regulation to prevent financial exploitation that could harm the national economy,” the source said.

He added that delays in enforcement would be unacceptable and called for full coordination with the central bank to ensure authorities have the necessary data.

“Immediate intervention and strict oversight of unlicensed money exchangers are essential to protecting Lebanon’s financial and security stability,” he said, while emphasizing that legitimate businesses should not be unfairly targeted.