Lebanon is reportedly preparing to take decisive steps against Al-Qard Al-Hasan, the Hezbollah-linked association long linked to microfinance and social support, amid growing pressure from Washington to cut funding to Hezbollah. Discussions among the country’s financial, monetary, and security authorities have moved from debating whether to shut the group down to planning how such a move could be implemented, as well as what type of institution could succeed it, Al-Modon reported.

Sources familiar with the matter said officials are considering revoking the association’s current license, changing its name, and halting activities in violation of regulations while preserving its social role, which is deeply intertwined with the lives of hundreds of thousands of Lebanese, notably from the Shiite community.

Public reports of a “three-month deadline for closure” have stirred debate, though insiders suggest these may have been floated to gauge reactions before formal decisions are finalized.

While Al-Qard Al-Hasan continues to expand, including plans for a new branch in Baalbek, authorities face a shrinking window to halt Hezbollah’s financing networks. According to Al-Modon, the association’s operations are extensive, managing nearly $3 billion, including about $500 million in microloans, handling roughly 15 tons of gold, and serving 100,000 depositors and 200,000 borrowers.

The central bank and Ministry of Finance are reportedly taking steps to constrain the association technically, limiting cash transactions without confronting the group directly. Measures include tighter controls on unlicensed institutions and enforcement of Circular 170, which regulates cash operations and remittances. The Interior Ministry is expected to take the lead in revoking Al-Qard Al-Hasan’s license, preparing the ground for a long-term solution that halts its financial violations without eliminating its humanitarian services.

Sources suggest a potential compromise involves dissolving the current association and creating a new entity under a different name, focused solely on social support and excluding gold trading or deposit-taking. Critics argue this may undermine the purpose of Al-Qard Al-Hasan, provoke resistance from Hezbollah, and fall short of U.S. demands to cut the group’s financial links.