Hezbollah's Financial Operations: Shadow Banking and Economic Influence

Hezbollah operates a distinct financial system through unregistered banks, known as shadow banks, that remain separate from the broader Lebanese banking sector. Despite being under U.S. sanctions since 2007, Hezbollah's financial arm, AQAH, plays a vital role in Lebanon's economy, providing loans and liquidity, especially following the mainstream banking collapse. AQAH serves a broad customer base, including small business owners, by offering cash loans secured against assets like gold. Its financial operations thrive on a network that includes exchange houses and support from sympathetic Arab League entities, facilitating transactions in dollars and smuggling gold. The organization has adapted to Lebanon's crisis by establishing ATMs to distribute cash, positioning itself as a key financial provider amidst economic distress. Additionally, Hezbollah integrates its financial services with welfare provisions, historically popular within the Shia community, and is venturing into energy supply by offering affordable solar power solutions alongside financing options, further embedding itself in the socio-economic fabric of Lebanon.