Lebanon’s Central Bank revokes Bank Saderat Iran license

Lebanon’s central bank has revoked the operating license of Bank Saderat Iran, an Iranian financial institution with documented links to Hezbollah financing. Central Bank Governor Karim Souaid stated the move aims to protect Lebanon’s banking sector from the risk of contamination and potential U.S. sanctions.

The decision follows significant pressure from the United States to dismantle Iranian and Hezbollah financial networks within Lebanon. U.S. Treasury Secretary Scott Bessent reportedly met with Lebanese officials to request the closure of the bank. While Bank Saderat has operated in Lebanon since 1962, recent U.S. sanctions had already effectively isolated the institution from the formal banking system, limiting its operations to a scope similar to a small currency exchange.

Financial analysts suggest the impact on the local Lebanese market will be minimal, as most domestic banks had already avoided dealing with the institution due to existing sanctions. The central bank is also working toward removing Lebanon from the Financial Action Task Force (FATF) gray list by addressing money-laundering concerns and mapping the country’s cash economy.