The Hezbollah terrorist organization receives funding in various ways, both overt and covert. Iran, Hezbollah's main patron, plays a significant role in financing the terror group. According to reports, Iran delivers hundreds of thousands of dollars to Hezbollah annually and also supplies it with weapons.
Hezbollah, however, doesn't rely solely on Tehran. The organization has realized the need to diversify its funding sources for various reasons, including U.S. sanctions on Iran. It has done so successfully, mainly via money laundering, arms trading, drugs and tobacco.
Footage of damages to Qard Al-Hassan association, Hezbollah's financial arm in Lebanon
Hezbollah's Qard Al-Hassan banking chain, whose branches were attacked on Sunday, is considered a central financial tool for the organization — but not an exclusive one. Therefore, targeting it won't necessarily eliminate Hezbollah's funding sources.
Hezbollah has over the years extended its reach into various sectors in Lebanon, learning from Iran, including finance, energy and construction. It has established connections, increasing both its influence and wealth in the country.
Among Hezbollah's financial entities is Bayt al-Mal (House of Money), a financial body functioning like a bank with branches across the country. Another financial body is Hezbollah's Islamic Resistance Support Authority, responsible for fundraising for the organization.
Unlike entities that indirectly raise funds and present themselves as "innocent institutions," this authority openly promotes campaigns to arm Hezbollah on social media.
"Raise your head to the sky and see what your support has become — a drone," one of the authority's videos circulated online during the war read. According to Israel’s Alma Research and Education Center head Tal Beeri, Hezbollah also has a financial unit responsible for salaries, money transfers and budgets, with all its financial activities routed via the financial institutions established by the terror group.
Hezbollah also profits from drug smuggling operations across the Middle East, mainly involving the drug Captagon, an amphetamine-type stimulant. A few days ago, the U.S. Treasury Department announced new sanctions against Hezbollah’s financial network involved in oil and drug smuggling. Hezbollah collaborates with Syrian President Bashar al-Assad to produce and distribute drugs.
The Syrian army manufactures Captagon in factories across the country. The Syrian army's Fourth Division, commanded by the president's brother Maher al-Assad, plays a central role in drug production and has even been dubbed the "Captagon Division."
Iran established a Captagon production line for Hezbollah in the Beqaa Valley region along the Lebanon-Syria border. Hezbollah has tried over the years to deny its connection to the drug's production and smuggling, being careful to ensure that its partners don't take on central roles in transportation and smuggling.
Jordan is one of the key countries facing this drug challenge, with ongoing attempts to smuggle drugs into its territory including via drones.
Over the years, Hezbollah has also extended its reach into the energy and fuel sectors. Hezbollah's opponents in Lebanon are aware of the organization's pervasive influence and many blame it for the current energy crisis in the country.
According to Beeri, Iran’s fuel smuggling pipeline is another way for the organization to earn funds. "They receive fuel from Iran, it’s smuggled to Hezbollah via Syria and Hezbollah starts trading or selling it."
He added that the terror group also profits from construction companies. "There are many construction companies that appear to be civilian but are under Jihad al-Bina (Hezbollah’s socio-economic institution). There are construction, engineering and other companies belonging to Hezbollah. You can find something linked to Hezbollah in almost every field, presented as legitimate."
Many companies operating with or under Hezbollah are regularly subject to international sanctions aimed at stopping the delivery of funds to the terrorist organization.
Numerous other companies in Lebanon and abroad are part of Hezbollah's financial network, across various sectors. It's hard to tell if Hezbollah could survive economically without Iran's support, relying solely on the complex financial network it has developed over the years.
The organization also receives donations from communities abroad, with charity funds found in mosques around the world designated for donations to Hezbollah.
"Hezbollah is involved in almost every criminal activity worldwide, even luxury car smuggling. They have connections with criminal syndicates across the work, wherever a Shia community is found. Crime serves them not only for terrorism but also economically. It's a global operation.,” he added.
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