Al-Aqsa Islamic Bank

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Al-Aqsa Islamic Bank was established by Hamas in the Palestinian territories in 1997 to serve as the organization's financial arm. The bank laundered and transferred money on behalf of U.S.-terrorist designated Hamas until its assets were frozen by the U.S. authorities in 2001.[1] The bank's licence was revoked in 2010.

Establishment[]

Al-Aqsa Islamic Bank was established with $20 million in capital and became operative in 1999.[2] Contributions from charities and individual supported the establishment of the bank, although Hamas received a major contribution in 1998 from the owner of the Saudi Al-Baraka Bank Saleh Abdullah Kamel and from Jordan Islamic Bank, a subsidiary of al-Baraka.[3]

Kamel had provided significant financial support to Osama bin Laden in 1983.[3] The Saudi millionaire appeared on the list of purported sponsors of al-Qaeda that was seized in Sarajevo in 2002 during a raid of the premised of the Benevolence International Foundation. The operation, led by Bosnian police, uncovered what has been later labeled as “The Golden Chain,” a list later vouched by al-Qaeda defector Jamal al-Fadl that included 20 top Saudi and Gulf States financial sponsors.[4]

Al-Aqsa Islamic Bank was 20% owned by Beit el-Mal Holdings, an investment group based in the West Bank with chapters in East Jerusalem and Gaza.[5] The two financial institutions shared senior officers and directors, and a majority of their shareholders were renown to be affiliated with Hamas.[2] Mohammed Sarsour, a U.S. citizen who served as Vice-President of Bir Zeit University, was both Deputy General of Al-Aqsa Islamic Bank and General Manager of Beit al-Mal Holdings.[6][7]

Beit al-Mal itself was originally established to fundraise and transfer money for associations that the Palestinian Authority had identified as associated with Hamas. Both Al-Aqsa Islamic Bank and Beit al-Mal Holdings are part owners of Sinokrot Global group and “cooperatively act[ed] as a buffer between Hamas and its donors.”[6]

Cooperation with Citigroup[]

Shortly before the bank started operations, the affiliations with Hamas of several of its employers and board members became evident,[8] and a number of banks refused to clear its transactions.[3][4]

In particular, Al-Aqsa Islamic Bank's money laundering operation on behalf of Hamas cost the bank the possibility to do business in Israel.[2][9] Therefore, in order to evade Israeli sanctions, Al-Aqsa Bank embarked on joint projects with Citigroup, intertwining itself the bank's Israeli division.[3]

The joint projects with Citigroup led to the establishment of a joint database for Israel.[3] Moreover, the cooperation between Citibank and Al-Aqsa Islamic Bank expanded to the extent that money deposited into Al-Aqsa accounts in Europe and in the Middle East could be accessed from Israel through Citibank chapters.[1][3]

In January 2001 Citibank opened an office in Tel Aviv.[6] Israeli authorities then formally questioned its cooperation with Al-Aqsa Islamic Bank and urged Citigroup to request advice from the U.S. Treasury Department.[6][10] Citigroup has not released any information on the Treasury Department's response; however, the bank has severed its ties to Al-Aqsa.[3][6][10]

At that point, however, Al-Aqsa bank had received funds for at least $1 million through Citibank on behalf of Hamas.[3]

Counterterrorism measures[]

On December 4, 2001 after suicide attacks in Israel that killed 25 and injured over 200 the U.S. authorities under the authority of Executive Order No. 13224 designated Hamas as a terrorist organization with “global reach”[5] and froze the assets of the Holy Land Foundation, Beit al-Mal Holdings and Al-Aqsa Islamic Bank.[5] The three entities were providing financial and material support to Hamas.[5]

The Palestinian Monetary Authority canceled the license of the bank as of April 1, 2010.[11]

References[]

  1. ^ a b Harmon, Christopher C. (2008). Terrorism Today. Routledge. 2nd Edition. Pp.84-85
  2. ^ a b c Allen, Mike; Mufson, Steven (2001-12-05). "U.S. Seizes Assets of 3 Islamic Groups". The Washington Post. ISSN 0190-8286. Retrieved 2016-01-08.
  3. ^ a b c d e f g h Ehrenfeld, Rachel. (2005). Funding Evil: How Terrorism is Financed and How to Stop it. Chicago and Los Angeles: Bonus Books. Pp.104-105.
  4. ^ a b Risen, James. (2014). Pay Any Price: Greed, Power, and Endless War. Houghton Mifflin Harcourt. P.79.
  5. ^ a b c d "The Avalon Project : Shutting Down the Terrorist Financial Network; December 4, 2001". avalon.law.yale.edu. Retrieved 2016-01-08.
  6. ^ a b c d e Congressional testimony, “Fund-Raising Methods and Procedures for International Terrorist Organizations,” February 12, 2002.
  7. ^ http://www.pbapalestine.org/general/memers/members2.ht[permanent dead link]
  8. ^ Levitt, Matthew. (2008). Hamas: Politics, Charity, and Terrorism in the Service of Jihad. The Washington Institute for Near East Policy. P.165.
  9. ^ “Court Asks State Why it Took $1 Million of HAMAS Cash,” Ha’aretz, September 15, 2000.
  10. ^ a b Miller, Judith; Atlas, Riva D. (2001-01-24). "Citibank Weighs Ending Ties With an Arab Bank". The New York Times. ISSN 0362-4331. Retrieved 2016-01-08.
  11. ^ "Liquidation of Al-Aqsa Islamic Bank". Palestine Monetary Authority. 2010-05-10. Retrieved 2016-01-08.
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