A Lebanese money changer hit with U.S. sanctions over his alleged role as a financial middleman between Hamas and Iran was found shot to death at a villa just outside Beirut, Lebanon’s state news agency reported.

Lebanon’s interior minister, Bassam Mawlawi, speaking to a Lebanese TV network on Sunday, said the initial findings suggested that the killing last week “was carried out by intelligence services.” Asked if he believed Mossad was behind it, Mr. Mawlawi answered “yes.”

The Israeli prime minister’s office did not immediately return a message seeking comment.

Lebanon’s state news agency reported that the money changer, Muhammad Srour, 57, had gone missing for several days after visiting a money transfer shop to withdraw a payment. It said his body was found riddled with bullet wounds. The news agency referred to him only by his initials, but his family confirmed the identity.

The U.S. Treasury imposed sanctions on Mr. Srour in August 2019, saying that he had provided “financial, material, technological support, financial or other services” to Hamas and that he had ties with Hezbollah, the powerful Lebanese militant group. Mr. Srour was accused of transferring “tens of millions of dollars” annually from Iran’s Revolutionary Guard Corps to Hamas’ military wing.

During a televised address last week in the wake of the killing, Mr. Srour’s relatives called on the Lebanese authorities to find the perpetrators, and said that all his financial transactions were fully transparent.