The recent closure of several accounts used for online fundraising in Lebanon has triggered widespread debate over the legality of digital donation campaigns and the absence of a clear regulatory framework in the country.

The controversy erupted after Hussein Saleh, a 27-year-old municipal council member from the southern town of Ramiyeh, received a phone call from the money transfer company Whish Money informing him that his personal account would be closed.

Saleh had been using the platform to raise funds for residents of southern border villages affected by Israeli attacks, through a campaign he launched on July 18 titled “One Dollar.”

The initiative, which aimed to help families repair damaged homes and cover basic needs, quickly gained traction among donors inside Lebanon and abroad.

“Over the past few months, we raised around $38,000, which we spent on small repairs such as replacing windows and providing essential household supplies,” Saleh told Al-Modon.

He said he chose Whish Money because of its ease of use and widespread accessibility.

“Even elderly people know how to send money through it,” he said. “With one click, the funds reach families in the most remote areas.”

But three days ago, the company informed him that his account would be closed and asked him to withdraw the remaining balance of about $800, on the grounds that he was collecting donations without legal authorization.

“The decision was shocking, especially as winter approaches and hundreds of families are still in urgent need of heating and shelter,” Saleh said. “We were just trying to help people survive.”

Saleh was not the only one affected. Mohammad Abbas, vice president of a licensed NGO focused on family empowerment, said he also received a call from Whish Money notifying him of the closure of his account.

“When I went to their headquarters and presented the NGO’s official papers, they told me the issue would be resolved,” Abbas told Al-Modon.

However, not all organizations were as fortunate. The company permanently shut down the account of another group, Taawanoo, which has been active in collecting donations since the end of the recent conflict. Some Western reports have previously described the organization as a civilian arm of Hezbollah.

When contacted for comment, a Whish Money spokesperson denied that the company had changed its policies or targeted any specific individuals or organizations.

“The company has always refused to process transfers for unlicensed associations or individuals collecting unverifiable donations,” the spokesperson said. “Our goal is to protect both the company and its clients from any suspicion of fraud and to avoid legal or financial risks.”

The company said it applies strict verification measures under its “Know Your Customer” (KYC) policy, which requires identification and vetting of both senders and recipients.

“These procedures are essential for ensuring compliance with Lebanese regulations and international standards,” the spokesperson added. “They help prevent money laundering, terrorism financing, and other illicit activities.”

Attorney and lecturer in tax and public finance law Karim Daher said the controversy highlights a legal vacuum surrounding online fundraising in Lebanon.

“We don’t have any clear or direct legislation governing crowdfunding or digital donations,” Daher told Al-Modon. “The current legal system is outdated and does not reflect technological developments.”

According to Daher, online fundraising activities fall under two possible frameworks: general public order laws and Law No. 44 of 2015 on Anti-Money Laundering and Counter-Terrorism Financing.

Under existing rules, individuals may receive limited sums of money tax-free, up to 96 million Lebanese pounds, while licensed associations recognized as serving the public benefit can receive up to six billion pounds. Amounts exceeding those thresholds are subject to income tax ranging from 9% to 45%, depending on the relationship between donor and recipient.

If the recipient is not a registered association, the collected funds may be treated as taxable income. Failure to declare them within two months could be considered tax evasion.

“Tax evasion is classified as a predicate offense under the Anti-Money Laundering Law,” Daher said. “That means any money resulting from it could be treated as illicit. This is why some companies, to avoid exposure, preemptively freeze or close accounts.”

The incident has reignited discussion over how individual humanitarian initiatives can operate legally in Lebanon’s fragile and heavily regulated financial environment.

“Anyone seeking to raise funds online must understand the legal implications,” Daher said. “The safest approach is to work through a licensed NGO that operates under official oversight.”

While similar online campaigns have played a vital role in supporting families through Lebanon’s prolonged economic crisis, the lack of clear legislation has made such initiatives vulnerable to scrutiny and sudden shutdowns.