• Why Jihad Watch?
  • About Robert Spencer and Staff Writers
  • FAQ
  • Books
  • Muhammad
  • Islam 101
  • Privacy

Jihad Watch

Exposing the role that Islamic jihad theology and ideology play in the modern global conflicts

Three-year investigation details Arab Bank’s jihad funding

Mar 4, 2007 9:32 pm By Marisol Seibold

Arab Bank Update. “Arab Bank accused of funding terrorists,” by Josh Meyer for the Los Angeles Times:

WASHINGTON “” A three-year investigation into the activities of one of the Middle East’s largest and most influential banks is producing extensive evidence of how tens of millions of dollars have flowed from wealthy Saudi Arabians to Palestinian groups that allegedly used some of the money to pay off suicide bombers and their survivors.

The information being turned up by government inquiries and lawyers suing Arab Bank “will give people a better understanding of the way money moves in that part of the world to support Hamas” and other militant groups in the West Bank and Gaza Strip, said Stephen Kroll, a terrorism finance specialist and until recently counsel to the U.S. Senate Committee on Banking, Housing and Urban Affairs.

“It’s important in focusing the public’s attention on the issue of what is and what is not acceptable for banks to be involved in,” Kroll said.

The Justice Department is conducting a criminal investigation into the New York branch of Arab Bank, which is based in Jordan, and its financial links to organizations and individuals accused of terrorism, according to three former U.S. counter-terrorism officials.

In 2005, the bank agreed to pay the federal government $24 million in fines for violating U.S. laws aimed at preventing terrorist financing, including failing to report suspicious transactions.

The bank is also being sued in federal court in Brooklyn by Americans and Israelis injured in suicide bombings or other fighting in Israel and the occupied territories, and by the relatives of others who were killed. No trial date has been set, but assuming the cases go to trial, they could establish ground rules for what obligations banks have in handling money bound for militant groups. They could also provide an unusually detailed and public look at the flow of money from Saudi donors to Palestinian groups that the U.S. and Israel list as terrorist.

Lawyers suing Arab Bank accuse the firm of facilitating acts of terrorism by providing accounts and other financial services to Hamas, Islamic Jihad and similar groups. Arab Bank also acted as the administrator of a plan in which suicide bombers and others
designated as “martyrs” by the Palestinian Authority and other organizations
were compensated for their actions on a sliding scale, based on the extent of their injuries, according to documents filed in the cases. The lawsuits charge that the payments “” and thus
Arab Bank “” provided an incentive for suicide bombings.

Arab Bank officials deny such charges and say they have never knowingly supported acts of terrorism. Bank officials say their agreement to pay the fine in 2005 was not an acknowledgment of any wrongdoing.

Bank officials say they provide an important financial service in the impoverished Palestinian territories and that they were merely acting as intermediaries between banks representing Saudi donors and Palestinian organizations and individuals who were being compensated for suffering at Israeli hands.

They also say that a “martyr” can mean almost any Palestinian killed or injured as part of the struggle with Israel, including innocent victims.

[…]

In one instance in which plaintiffs’ lawyers allege that Arab Bank maintained an account for Hamas in Beirut, bank officials said that once they learned of the suspicious account, they froze it and reported it to authorities.

Arab Bank also said that it was primarily transferring funds sent to it from other banks on behalf of legitimate Saudi donors that have not been linked to terrorist activities. To win their case, the plaintiffs’ lawyers would have to prove that Arab Bank knew that it was doing business with terrorist individuals or entities.

In 2005, the Treasury Department and the Office of the Comptroller of the Currency found that Arab Bank’s New York branch had transferred funds between 2001 and 2004 for organizations that were later designated by the U.S. as terrorist groups. The Treasury Department said the bank had “largely complied” with the requirement to stop the transfers after the groups were identified.

But the department said that after the government designated these groups as terrorist, the bank failed to go back and review its accounts to see what dealings it had had with them and report any suspicious activities.

And yet the New York branch of Arab Bank is still doing business.

Some of the initial allegations in the lawsuits, most of which were filed in 2004, were based on documents seized by the Israeli military during raids on charities, businesses and other locations in the West Bank and Gaza in 2002. Among the documents were
records indicating that Arab Bank provided financial services for Hamas and at least 41 organizations and individuals allegedly related to it or to Islamic Jihad.

Share this:

  • Click to share on Facebook (Opens in new window)
  • Click to share on Twitter (Opens in new window)
  • Click to share on WhatsApp (Opens in new window)
  • Click to print (Opens in new window)
  • Click to email this to a friend (Opens in new window)
  • More
  • Click to share on Skype (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)
  • Click to share on Telegram (Opens in new window)
  • Click to share on Tumblr (Opens in new window)
  • Click to share on Pocket (Opens in new window)
  • Click to share on Pinterest (Opens in new window)

Follow me on Facebook

Filed Under: Uncategorized


Learn more about RevenueStripe...

FacebookYoutubeTwitterLog in

Subscribe to the Jihad Watch Daily Digest

You will receive a daily mailing containing links to the stories posted at Jihad Watch in the last 24 hours.
Enter your email address to subscribe.

Please wait...

Thank you for signing up!
If you are forwarding to a friend, please remove the unsubscribe buttons first, as they my accidentally click it.

Subscribe to all Jihad Watch posts

You will receive immediate notification.
Enter your email address to subscribe.
Note: This may be up to 15 emails a day.

Donate to JihadWatch
FrontPage Mag

Search Site

Translate

The Team

Robert Spencer in FrontPageMag
Robert Spencer in PJ Media

Articles at Jihad Watch by
Robert Spencer
Hugh Fitzgerald
Christine Douglass-Williams
Andrew Harrod
Jamie Glazov
Daniel Greenfield

Contact Us

Terror Attacks Since 9/11

Archives

  • 2020
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2019
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2018
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2017
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2016
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2015
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2014
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2013
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2012
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2011
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2010
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2009
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2008
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2007
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2006
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2005
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2004
    • December
    • November
    • October
    • September
    • August
    • July
    • June
    • May
    • April
    • March
    • February
    • January
  • 2003
    • December
    • November
    • October
    • March

All Categories

You Might Like

Learn more about RevenueStripe...

Recent Comments

  • Crusades Were Right on Muslim cleric: ‘We welcomed the takeover of ISIS because they wanted to implement the Sharia’
  • William Garrison on The Fantasy Islam of Rice University’s Craig Considine (Part 3)
  • Vladimir on Islamic Republic of Iran: Turkey’s Erdogan champions Islam only as a tool to further his own interests
  • John on Muslim cleric: ‘We welcomed the takeover of ISIS because they wanted to implement the Sharia’
  • Vladimir on Muslim cleric: ‘We welcomed the takeover of ISIS because they wanted to implement the Sharia’

Popular Categories

dhimmitude Sharia Jihad in the U.S ISIS / Islamic State / ISIL Iran Free Speech

Robert Spencer FaceBook Page

Robert Spencer Twitter

Robert Spencer twitter

Robert Spencer YouTube Channel

Books by Robert Spencer

Jihad Watch® is a registered trademark of Robert Spencer in the United States and/or other countries - Site Developed and Managed by Free Speech Defense

Content copyright Jihad Watch, Jihad Watch claims no credit for any images posted on this site unless otherwise noted. Images on this blog are copyright to their respective owners. If there is an image appearing on this blog that belongs to you and you do not wish for it appear on this site, please E-mail with a link to said image and it will be promptly removed.

Our mailing address is: David Horowitz Freedom Center, P.O. Box 55089, Sherman Oaks, CA 91499-1964

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.