Al-Qard Al-Hasan Association has come under renewed scrutiny from the United States over its involvement in illegal gold sales within Hezbollah-controlled networks, sources told Nidaa Al-Watan.

Lebanese economic sources confirmed the reports, saying the group has been gradually marketing large quantities of gold at below-official prices; a move seen as an effort to circumvent both domestic and international sanctions before they take full effect.

Historically, the association operated by pledging gold as collateral for loans. In recent years, however, it has shifted to selling gold directly in the market as a cash commodity. The change reflects rising liquidity pressures on the association and presents a challenge for the Lebanese state in regulating financial institutions operating outside the law amid mounting international risks to the national economy.

The transformation occurs amid Lebanon’s ongoing financial crisis, as parallel financial actors seek to maintain rapid access to cash while facing increasing sanctions on entities linked to Hezbollah.

US diplomatic sources said the association has been selling gold sovereigns illegally within Hezbollah’s financial networks. Treasury officials were reportedly surprised by the gradual release of large volumes of gold into the market at below-official prices, a strategy interpreted as an effort to quickly liquidate assets and evade sanctions after deadlines for regularization expired.

Lebanese sources described the operations as a deliberate liquidity management strategy, but one that risks destabilizing the official gold market. Selling gold below market rates distorts traditional pricing mechanisms and erodes the confidence of both traders and consumers in the formal monetary system.

Lebanese sources told Nidaa Al-Watan that the association has become a focal point of both local and international concern. The Central Bank of Lebanon has granted it a three-month period to regularize its legal and financial status before deciding on a potential closure. 

Gold, once considered Hezbollah’s last line of liquidity defense, is now being treated as a cash commodity. Selling below market prices is not aimed at conventional profit but at generating immediate liquidity amid tightening access to traditional funding sources.

Previously, the association provided loans secured by gold deposits, returning the gold once loans were repaid. Today, selling the stored gold positions the association as a direct intermediary in the cash gold market, operating outside any regulatory framework and controlling liquidity flows rather than merely managing client guarantees.

The association’s limits on purchase quantities per buyer indicate a precise internal strategy to manage liquidity. However, selling below official prices distorts supply and demand dynamics, disrupts traditional gold trading, and weakens confidence in the formal gold market. The practice also strengthens the parallel cash economy, highlighting the urgent need for the formal financial sector and the Central Bank to reassert oversight over state institutions.

The shift from an unlicensed financial entity to a network for recycling funds and liquidating assets outside official supervision constitutes a clear violation of international sanctions. Sources warned that any official Lebanese inaction could be interpreted internationally as tacit complicity in breaching the sanctions regime, particularly following the association’s listing on sanctions registers and the Central Bank’s circular in July 2025.