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.
http://www.latimes.com/news/nationworld/world/la-fg-arabbank4mar04,0,2890874.story?coll=la-home-world
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