The U.S. Justice Department is investigating alleged funding of terrorism by wealthy Saudis through the Arab Bank, the Los Angeles Times reports.
Israelis and U.S. citizens injured in suicide bombings have also filed lawsuits against the bank in New York. They claim the bank was involved in compensating the families of “martyrs” or suicide bombers, and was used to fund Hamas and Islamic Jihad.
The bank denies the allegations.
“Arab Bank had reason to believe these were humanitarian payments or social welfare payments, and there was certainly nothing in any of the public information that suggested to the bank at the time that these were in any way to induce terrorism or reward terrorism,” said Robert Chlopak, a representative of the bank who is based in Washington.
The bank paid a $24 million penalty for failing to report suspicious transactions and other violations of laws meant to stem the flow of money to terrorist groups, the newspaper said.