Lebanon’s central bank issued a directive banning banks, licensed financial institutions, and investment firms from conducting any form of dealings with unlicensed associations, exchange houses, and companies listed on international sanctions lists.

In a circular issued Tuesday, Banque du Liban (BDL) prohibited both direct and indirect financial or commercial transactions with a list of unlicensed organizations, including:

• Al-Qard al-Hassan Association

• Tashilat SAL

• Yassir Finance and Investment Company

• Bayt al-Mal for Muslims

The ban also extends to "other institutions, entities, companies, and associations" designated under international sanctions regimes, BDL said.

The directive forbids a broad range of activities, including:

• Providing or facilitating financial, monetary, or brokerage services

• Engaging in financing, leasing, or lending agreements

• Enabling direct or indirect access to Lebanon’s banking system—regardless of currency—by any of the designated entities or their affiliates

BDL warned that noncompliance would result in severe penalties. These include the suspension or revocation of operating licenses, freezing of assets and accounts, and referral to the Special Investigation Commission (SIC)—Lebanon’s financial intelligence authority.

In its circular, BDL stressed its commitment to fully enforce the decision, stating that it will take "all appropriate administrative and legal steps" to ensure compliance. The ban takes effect immediately upon issuance.

BDL’s latest directive aligns with efforts to strengthen Lebanon’s position in global anti-money laundering frameworks, especially as the country remains on the Financial Action Task Force (FATF)’s “grey list” of jurisdictions under increased monitoring.

Who Are the Banned Entities?

Al-Qard al-Hassan Association, widely believed to serve as the financial arm of Hezbollah, has been under U.S. sanctions since 2007. It operates a shadow banking network across Lebanon, providing loans and other financial services, often backed by deposits from supporters. Though it presents itself as a charitable microfinance organization, Western governments have accused it of funneling money to Hezbollah’s military wing and circumventing international sanctions.

Tashilat SAL is a finance and investment company reportedly linked to pro-Hezbollah networks. It has been involved in various consumer lending schemes and financial services that operate outside central bank oversight. Though not officially sanctioned by the U.S. Treasury, it is on the radar of regulatory bodies due to its opaque ownership and operating practices.

Yassir Finance and Investment Company is another unlicensed entity that has operated in the microfinance and investment sectors, often extending loans under Islamic finance principles. Its lack of transparency, unregulated status, and alleged links to politically exposed networks have raised red flags among international compliance monitors.

Bayt al-Mal for Muslims is known to operate as an informal Islamic financial institution. Though it maintains a low public profile, it has drawn scrutiny over allegations of channeling funds through informal hawala-style networks and for its suspected ties to extremist financing pipelines. It has previously been named in open-source reports by regional security analysts.