Posts Tagged ‘bank secrecy’

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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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Another Islamic bank thumbs nose at U.S. court

November 15, 2010

First it was Al Rajhi Bank.  Now it’s Jordan’s Arab Bank.  Both have been involved in financing terrorism.  And when the terror victims try to take them to court here in the U.S., they’re told to sit down, shut up, and wait through months or years of legal obfuscation under the cover of bank secrecy laws of our Middle Eastern “allies.”  From the Wall Street Journal on Nov. 5:

WASHINGTON—A major Middle Eastern bank launched a final effort Thursday to avoid legal sanctions punishing it for not disclosing client records in a terror-finance case that could have repercussions for other international banks.

Citing bank-secrecy laws in several countries where it operates, Jordan-based Arab Bank PLC has defied U.S. federal court orders to turn over documents sought by American victims of terrorist attacks and their families in a long-running private case related to Palestinian terror attacks in Israel. The plaintiffs say the bank enabled the attacks by acting as a conduit for money from Saudi donors that went to families of suicide bombers and terror groups, a charge the bank denies.

The suit, which was filed in U.S. District Court for the Eastern District of New York in Brooklyn in 2004, alleges that Arab Bank financed Palestinian terrorism by, among other things, paying a “comprehensive insurance benefit” of around $5,300 to families of suicide bombers on behalf of the Saudi Committee, a government-run charity. The suit also alleges that the bank knowingly provided banking services to groups such as Hamas and the Palestinian Islamic Jihad, which are both considered terrorist groups by the U.S.

In an unusual legal move, Arab Bank on Thursday asked an appeals court in New York to intervene to overturn harsh sanctions imposed by the federal court after the bank declined to turn over customer records…