Posts Tagged ‘Israel’

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Islamic Relief Worldwide programs staffed by Hamas

July 18, 2014

Islamic Relief Worldwide (IRW) activities in the Palestinian territories are run by Hamas operatives, according to Israeli officials.

The way it works is that IRW, a British-based charity, raises substantial funds from institutional donors, government funding, and zakat from individual Muslim donors. IRW also receives money from its affiliates around the world, including millions of dollars in gifts from Islamic Relief USA (IR-USA).

IRW then sends money to field offices and partnering organizations in the Palestinian territories. Israel’s Shin Bet security service says that several of the offices and projects that are carried out with IRW funding are being conducted by Hamas personnel.

IR-USA, a charity publicly cited by Obama appointees as a valued and trusted aid group, is privately tagged by Justice Department sources as the successor to the Holy Land Foundation, which was shuttered during the Bush administration for funding Hamas. The Clarion Project (h/t to Rushette) notes that IR-USA receives support from bigtime donors and enjoys close ties to the Obama administration.

Israel should share what information it can with the UK in order for the British to 1) strip IRW of its charity status and, 2) shut down IRW. There is no time to waste with the useless UK Charity Commission. This case should be dealt with at higher levels.

Canada Revenue Agency, which has been extremely successful in taking prompt action to remove the tax-exempt status from terror financing charities, should also review Islamic Relief Canada’s projects.

The U.S. should follow suit, and should strip IR-USA of its tax-exempt status, since IR-USA money is ultimately going toward Hamas projects, and not toward the charitable purposes for which 501(c)(3) status is intended.

Any banks providing services to IRW and IR-USA should take note of these developments, and minimize their own risks and exposure to terrorist financing by closing their accounts (as UBS already did in 2012) with these “charities.”

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Who finances Hamas’s rockets?

July 14, 2014

Short answer: Iran.

Iran manufactures missiles, loads them up at its Bandar Abbas port, ships them to Sudan, where they are transported by ground to the Sinai for final transfer through smuggling tunnels to Hamas and Palestinian Islamic Jihad in Gaza.

Smuggling was rampant particularly when the Muslim Brotherhood controlled Egypt under Muhammad Morsi, making a significant contribution to Hamas’s 10,000 missile stockpile. “Under Morsi it was almost a highway,” said one observer.

Shorter-range missiles are built in Gaza itself. Technical expertise lent by Iran is helping develop Hamas’s homegrown rocket program, although even as recently as two years ago one analyst observed that Hamas lacks the capacity within Gaza to build a banana plantation, much less a missile factory.

Some missiles, such as the M-302, are manufactured by Syria “under license” from China, which designed it. Assad would not be able to produce these weapons or remain in power without Iranian backing in the first place.

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Terror finance & AML news: suggested reading

June 13, 2014
  • The Washington Post cites the “well versed” Money Jihad blog and its analysis of the world’s richest terrorist groups when sizing up ISIS’s new found wealth after its multi-million dollar seizure of the Mosul central bank… more>>
  • Given the Palestinian Authority’s new unity government with Hamas, Israel wants U.S. foreign aid to the Palestinian Authority to cease. Congress is one step ahead… more>>
  • A U.S. court decision leaves the door open to testimony from a key Israeli terror finance witness in the Bank of China case… more>>
  • Hers was a love for laundering drug money from Florida to Mexico, yet a judge saw fit to dismiss her indictment after she pleaded guilty to a misdemeanor. Some deterrent… more>>
  • Saudi Arabia is imposing financial sanctions against Hezbollah, its supporters, and its front businesses operating in the Kingdom… more>>

 

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Kerry sides with Jordanian bank against terror victims

April 11, 2014

So committed is he to the illusory peace process between Israel and its neighbors that John Kerry’s State Department is siding with Jordan’s Arab Bank in pushing for legal relief from a terrorist financing lawsuit in New York.

At the heart of the case is Arab Bank’s refusal to turn over documents that would provide further detail about the transactions it helped facilitate for Hamas. Arab Bank has cited bank secrecy laws as the reason for its recalcitrance. Jordan has argued on behalf of the bank, making thinly veiled threats that it may not support the peace process with Israel if the U.S. Supreme Court doesn’t intervene to provide relief to Arab Bank from the rulings against it.

According to recent reporting by New York Times, “The State Department’s arguments appear to closely track those made by the government of Jordan.”

The intervention of the State Department represents a setback to progress that victims of Hamas terrorism appeared to be making last year in the case against Arab Bank.

Suing terrorist organizations and the banks that assist them has become an increasingly utilized tactic in the West to help gradually de-fund terror groups. Kerry doesn’t appear to be on board with that strategy.

Acknowledgment:  Thanks to Twitter user Mean Kitteh for notifying us of the NYT report.

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Money Jihad’s recommended reading

February 27, 2014
  • Despite budgetary hard times, the Palestinian Authority is able to cough up $46 million to terrorist ex-convicts—from your tax payments… more>>
  • Is a financial-cyber war against America already underway?  More>>
  • Sharia law dictates that gambling is haram (unclean), and Sheldon Adelson is Jewish and pro-Israel. Perhaps those are two of the reasons why Adelson’s Las Vegas Sands has been the target of a major cyber attack… more>>
  • New legislation in Turkey threatens to prevent meaningful due diligence by bank compliance officers by suppressing negative information on the Internet… more>>
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Another Eritrean embassy engages in extortion

January 10, 2014

It happens in Kenya, Canada, Britain, and, according to a new report, in Israel as well.  Eritrean diplomats carry out the dirty work of the dictatorship back home by forcing Eritreans living abroad to pay an illegal tax.

That tax funds the dictatorship and the al-Shabaab terrorist organization it supports.

Not only is the use of ambassadors and consuls to collect such a tax a violation of international consular law, but this latest case represents a violation of an Israeli law that caps foreign remittances.

The Eritrean embassy instructed Eritreans in Israel to remit their tax payments to a bank in Frankfurt, Germany, for follow-on transfer to Eritrea.

It’s become clear that Eritrean embassies really don’t help ordinary Eritreans who have attempted to make better lives for themselves abroad.  The “diplomats” are regime henchmen, fomenting strife within and extortion against the communities which they are supposed to serve.  The ultimate beneficiary is the repressive regime in Eritrea and its al-Shabaab partner.

From the Jerusalem Post, with a tip of the hat to El Grillo:

Eritrean Embassy offering advice how to make illegal money transfers

By BEN HARTMAN

12/23/2013 02:44

Migrants make claims day after brawl involving dozens of Eritrean regime opponents and supporters at Kibbutz Kinneret.

The Eritrean Embassy in Israel is advising migrants in Israel how to transfer money back to Eritrea through a bank account in Germany, contrary to Israeli law, which forbids such transfers, a group of Eritrean migrants said at a press conference in Tel Aviv on Sunday.

The migrants called the press conference the morning after a brawl involving dozens of regime opponents and supporters at an event organized by the embassy at Kibbutz Kinneret on Saturday, in which over a dozen people were wounded and around 15 arrested. They said that the embassy gave instructions to migrants about how to transfer money and also advertised real estate in Eritrea, telling them that it was a good opportunity for them to build a house back in their home country.

A law passed earlier this year makes it illegal for African migrants to transfer money out of Israel to their home country, and assigns stiff penalties to people found breaking this law, or Israelis found helping Africans wire money home.

The law stipulates that the transfer must be less than the minimum wage in Israel divided by the number of months the person has been in the country.

There were several hundred migrants taking part in the press conference on Saturday, activists in Tel Aviv said Sunday. They said a group of around 60 regime opponents arrived and were accused of being “Ethiopian instigators” by ambassador Tesfemariam Tekeste, at which time the say they were attacked.

The regime supporters and the ambassador said they were peacefully holding the meeting when they were set upon by Eritrean men wielding sticks and throwing rocks, with some wielding knives and screwdrivers.

At the press conference in an events hall near the Tel Aviv central bus station, regime opponents showed a pamphlet they say was being handed out by regime supporters at the event the previous day, which showed details of a bank called “Commerzbank” in Frankfurt. The pamphlet included a Swift code and details for transferring money through the German bank to the Housing and Commerce Bank of Eritrea, where they were told to specify that the money was meant for the “Urban Development Eritrea – Housing Project 2013.”

For unclear reasons, the pamphlets were in English, not Tigrinye.

The Eritrean government requires citizens in the diaspora to pay a monthly tax in order to retain their passport and that tax as well as money sent home by citizens outside the country are major sources of revenue for the Eritrean government…

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Shin Bet’s dirt on the China-Hamas connection

October 4, 2013

Haaretz has published an unusually detailed report on longstanding use of Chinese banks to launder money for the Hamas terrorist organization.  Many readers are already familiar with the ongoing lawsuit against the Bank of China made wire transfers to Hamas and Palestinian Islamic jihad from 2004 to 2007, but this this newly disclosed operation involving “Abu Othman” indicates that China was still active in laundering money for Hamas as recently as 2012.  Take a look:

Infographic on criminal money transfer conspiracy

Shin Bet probe reveals scope of Hamas money laundering through Chinese banks

Laundering continued years after the Bank of China affair, Israel’s security service reveals.

By Chaim Levinson | Sep. 29, 2013

A Shin Bet security service investigation reveals that China is a central financial channel for funding Hamas activity worldwide. Its February-March 2012 probe connected Chinese banks to the transference of money to Hamas prisoners. The Shin Bet seized numerous documents of the transfers and a list of accounts in which the money was deposited in China.

The key to discovering the network was the testimony of Amar Mer’i, a West Bank money changer who had previously transferred money from laborers from Gaza to their families, but had stopped this activity after pressure from the Palestinian Authority to cut his ties with Gaza. He told the Shin Bet he was contacted by a man known as Abu Othman, who had received his name and number from Mer’i’s counterpart in Gaza. Mer’i said he suspected Abu Othman was a Hamas operative.

The Shin Bet arrested Mer’i at a border crossing in February 2010 in possession of $126,000 and NIS 80,000 in cash. Mer’i received the money from two men from the village of Musmus in the Wadi Ara region.

Mer’i’s information led to a complicated web. His contacts from Musmus, Mohammed Agbaria and his cousin Mohammed Abu Shahab, would receive text messages from Abu Othman with an encoded telephone number of an Eritrean national. Agbaria would meet the Eritrean in Tel Aviv’s Central Bus Station area, take the money from him and pass it on to Mer’i, who would deposit it in the Bank of Palestine in Yabad, near Jenin. After that, Mer’i would receive an email message from Abu Othman with instructions on where to transfer the funds.

Most of the money would be transferred to accounts in the Bank of China. One transfer was made to a Citibank account in New York and another to a bank in Alabama. Several transfers were made to a HSBC bank in Hong Kong. Some money was transferred to accounts in India and Turkey.

Mer’i personally handed over some of the cash to Hamas activists in the West Bank as compensation for having served jail time.

The Shin Bet asked Mer’i why Abu Othman had to pay a mediation commission to an Eritrean national, couriers from Musmus and also to him. Mer’i said it didn’t make sense to him and he suspected the convoluted money route was illegal. He said the text messages also made him suspicious.

Mer’i said he had called Abu Othman to ask him if the money belonged to Hamas, but was told it did not. Altogether he carried out 40 money transfers, totalling $1.1 million.

Mer’i also transferred money to Brookside Agra, an Illinois-based company that sells fertilizers.

He told the Shin Bet interrogator that Abu Othman asked him on the phone if he could handle money the latter had in Sudan. Mer’i said he asked several money changers and the Bank of Palestine, but none of them had any contact with Sudan.

Mer’i said that, a few days before his arrest, he received a text message from Abu Othman with the names of three women and the sums of money to give them. These included $3,000 to Um Faiz, $3,000 to Fatma and $3,500 to Um Sa’ad. He said he called the three and set up meetings with each.

The money was intended as support to the families of Hamas prisoners in Israeli prisons. Couriers Agbaria and Abu Shahab transferred funds to Hamas families as well. In one case, Hamas prisoner Ayman Abu Daud testified he had received $38,000 for serving time in an Israeli prison.

Abu Daud was arrested in 2002 and sentenced to 36 years in prison after carrying out four shooting attacks in the Hebron area. He was released in the Gilad Shalit prisoner-exchange deal…

There is more; read it all here.

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Financial mischief: recommended reading

September 26, 2013
  • “We should bleed America economically,” says Zawahiri…  more>>
  • It was a lot of fun laundering $1.4 million for terrorist guerrillas, until he got caughtmore>>
  • The Muslim Brotherhood created international sharia-compliant finance, and still controls it… under Saudi supervision.  More>>
  • If Muhammad Atta II waltzed into SunTrust today, would he qualify for a bank account?  More>>
  • Uzi Shaya could prove to be a crucial witness in the terror finance trial against the Bank of China—if Israel lets him testify… more>>
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Case can proceed against terror-funding bank

January 22, 2013

Progress made as court rejects bank’s appeal

Arab Bank’s refusal to turn over records has been a major obstacle in the Linde v. Arab Bank terrorist financing case.  To move beyond the legal stalemate, the presiding judge said the jury could infer what it wants to about Arab Bank’s secrecy.  The bank appealed the judge’s jury instruction to the U.S. Second Circuit Court of Appeals.  The appellate court ruled Friday that it had no standing to review the case at this time (h/t @ChallahHuAkbar), and that there’s nothing drastic enough about the judge’s instruction to cause the circuit court to intervene.

From Bloomberg:

Arab Bank Sanctions Order Appeal Dismissed by U.S. Court

Arab Bank Plc (ARBK)’s appeal of sanctions for not obeying discovery orders in a lawsuit brought by victims of terrorist attacks was dismissed by a federal appeals court in New York.

The U.S. Court of Appeals in Manhattan ruled today that it couldn’t hear the bank’s appeal of a sanctions order imposed by U.S. District Judge Nina Gershon in Brooklyn until after the consolidated suits pending before her have ended.

“We conclude that the sanctions order is not a reviewable collateral order, and we therefore dismiss the bank’s appeal for want of jurisdiction,” the panel of judges said.

“We conclude further, that this is not an appropriate case for issuance of the extraordinary writ,” the appeals court said, adding, “the bank has not established (among other factors) that it has a ‘clear and indisputable right’ to such drastic relief or that review after final judgment will not provide adequate relief.”

Courtney Linde, the widow of John Linde Jr., who was killed Oct. 15, 2003, while guarding diplomats traveling in the Gaza Strip, sued in federal court in Brooklyn in 2004. She is the lead plaintiff for a half-dozen families suing the Amman, Jordan-based lender in cases that allege it “knowingly and purposefully supported” foreign terrorist organizations between 1995 and 2004 by providing financial support. The bank has denied wrongdoing.

Sanctions Imposed

The judge imposed sanctions upon the bank for not complying with several court orders to produce documents the plaintiffs said were relevant to their case. Gershon’s sanctions took the form of a jury instruction that would permit — but not require — the jury to infer from the bank’s failure to produce the documents that it provided financial services to foreign terrorist groups and did so knowingly.

Gershon also precluded the bank from introducing for the jury’s consideration certain evidence related to undisclosed materials.

The bank argued that the sanctions were “unduly harsh,” that jury instructions would predetermine the outcome of the case, and that the documents are covered by foreign bank secrecy laws, so that their disclosure would subject the bank to criminal prosecution.

Ten similar suits brought against the bank by the families of dozens of victims of other attacks in Israel were consolidated and are pending before Gershon. She hasn’t yet determined whether any of those cases will go to trial.

‘Substantially Right’

“We think they got it substantially right,” Gary Osen, a lawyer for some of the plaintiffs, said in a phone interview about the decision to dismiss the appeal. “It just means these cases can go forward. All we ask for is our day in court.”

Bob Chlopak, a spokesman for Arab Bank, said in an e-mail that the ruling is “not an endorsement of the district court’s sanctions.”

“The bank continues to believe that the district court’s sanctions order raises serious issues of international concern, and it is currently weighing its legal options,” he said.

The bank, Jordan’s largest, won dismissal in November of a separate case filed by former Israeli government official Mati Gill, which alleged that the lender supported the group Hamas. Gill, who was injured in a 2008 by a shot fired from Gaza, a territory bordering Israel, sought damages from the bank…

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Iran financing Gaza’s jihad by land, sea, and air

January 18, 2013

Whether through Sudanese ports, Libyan overland routes, the Rafah border crossing, or smuggling tunnels, Iran has been reasserting its role as the leading regional state sponsor of terror against Israel by funneling arms to Gaza.

Were reports of imminent financial collapse of Iran premature?  If Iran can fund weapons shipments to Gaza to the degree alleged by Israeli officials in this report, it would seem so.

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Hillary Clinton sued for funding terrorism

December 5, 2012

The U.S. finances terrorism by providing insufficient safeguards in the distribution of foreign aid to the Palestinian Authority and United Nations Refugee Worker’s Administration (UNRWA) according to a lawsuit filed against Hillary Clinton and other Obama administration officials.

Money Jihad has been making this point for years: why is it a crime when ordinary citizens send money to terrorists, but when the federal government does nobody bats an eye?

This lawsuit is about unlawfully disbursed aid to the Palestinian territories, but the same wrongdoing applies to U.S. negotiations with the Taliban.  If you and I communicate with the Taliban and give them money in order to incentivize a certain behavior, we’d be in prison. If the State Department does uses taxpayer money to help bribe the Taliban to sit across from them at the negotiating table, they get praised by the foreign policy “experts.”

In either case, what federal officials are doing is providing material support—money—directly or indirectly to a terrorist organization in violation of U.S. law.

From Shurat HaDin on Nov. 27:

Hillary Clinton sued by Americans over funding of Palestinian terror groups

Federal suit alleges that the US State Dept violated the Anti-Terrorism Act, and abandoned Congressional safeguards, transparency and reporting requirements  

Tel Aviv, Nov. 27, 2012: A group of 24 Americans living in Israel, including victims of terrorism, filed a lawsuit today against the US government over its funding of Palestinian terrorism in the West Bank and Gaza.

The civil action, filed in the district court of Washington DC, alleges that the US Department of State, including Secretary of State Hillary Clinton, has ignored congressional safeguards and transparency requirements attached to US aid to the Palestinian Authority (PA). In addition, the plaintiffs claim that the White House has not been complying with the regulations and reporting obligations governing presidential waivers which facilitate emergency funding to the Palestinians. As a result of this non-compliance, US funds have been flowing to terror groups like Hamas, the Palestinian Liberation Organization (PLO), the Popular Front for the Liberation of Palestine (PFLP) and the Palestine Liberation Front.

According to the lawsuit, Americans living in proximity to these Palestinian terror groups are in the class of individuals that Congress sought to protect through the safeguards and regulations that the White House, State Department and USAID are disregarding.

The suit asks the federal court to review the conduct of  the State Department and the safeguards on funds being distributed by USAID in its programs to the PA and to the United Nations Refugee Worker’s Administration (UNRWA) and seeks to suspend future American aid to the PA and UNRWA until all the Congressionally legislated regulations and reporting requirements are fully complied with.

Click here to view the lawsuit

The plaintiffs are represented by attorneys Norman Steiner of New York and Nitsana Darshan-Leitner of Tel Aviv.

Darshan-Leitner, the director of Shurat HaDin – Israel Law Center, stressed that “once handed over, US funding of the PA and UNRWA is difficult to trace and the State Department has been lax in requiring the Palestinians to utilize bank accounts and other transfer methods that ensure transparency.” The founder of the Israeli counter-terror group added that “elements of the US Government, particularly the State Department and USAID, are breaking the law and must cease all funding of the PA immediately. US aid to the Palestinians is killing innocent people.”

Steiner added: “The American people are opposed to terror and do not want to fund it via their taxes. The ongoing non-compliance of the White House and State Department with Congressionally mandated protections cannot be allowed to continue.”

The United States Department of State, under the  Palestinian Anti-Terrorism Act, is prohibited from providing “material support” to proscribed terrorist groups. It is estimated that since the signing of the Oslo Accords in 1993, the United States State Department, via USAID has given over $4 billion to Palestinians, with portions of that funding illegally landing in the hands of terrorists. During the last four fiscal years, average aid has been roughly $600 million per year. Additionally, the United States gives approximately $200 million to the United Nations body UNRWA, each year, and during the fiscal years 2008 and 2009, UNRWA gave roughly $500 million of their funding to recipients in the West Bank and Gaza.

Under the Anti-Terrorism Act, the State Department is required to certify that the Palestinian government is committed to a peace co-existence with Israel before distributing funds, and ensure that no part of funding is used for Palestinian terrorism.  The plaintiffs allege that these crucial safeguards, transparency obligations and reporting requirements are being negligently ignored.

One of the lawyers handling the case is Nitsana Darshan-Leitner, the director of Shurat HaDin, the Israel Law Center, which appears on our blogroll.

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