Bangladesh, May 9 -- Once celebrated as the “Switzerland of the Middle East,” Lebanon has watched its institutions corrode under the weight of corruption, foreign influence, and civil strife. Recent reforms – such as the end of banking secrecy protections – offer a glimmer of hope. However, unless Lebanons leaders confront the most untouchable force within their borders – Hezbollahs parallel state and illicit financial empire – real reform will remain an illusion.

In late April, Lebanons parliament passed a key reform granting regulatory authorities, including the central bank, greater access to bank account information. This move, aimed at unlocking a long-promised $3 billion financial package from th...