Al-Aqsa Islamic Bank
| Formation | 1997 |
|---|---|
| Founder | Hamas |
| Type | International financial institution |
| Purpose | To serve as the finance arm of Hamas[1] |
| Headquarters | Palestine[2] |
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of U.S.-terrorist designated Hamas until its assets were frozen by the U.S. authorities in 2001.[3] The bank's licence was revoked in 2010.
Establishment
[edit]Al-Aqsa Islamic Bank was established with $20 million in capital and became operative in 1999.[4] 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.[5]
Kamel had provided significant financial support to Osama bin Laden in 1983.[5] 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.[6]
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.[7] The two financial institutions shared senior officers and directors, and a majority of their shareholders were renown to be affiliated with Hamas.[4] 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.[8][9]
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.”[8]
Cooperation with Citigroup
[edit]Shortly before the bank started operations, the affiliations with Hamas of several of its employers and board members became evident,[10] and a number of banks refused to clear its transactions.[5][6]
In particular, Al-Aqsa Islamic Bank's money laundering operation on behalf of Hamas cost the bank the possibility to do business in Israel.[4][11] Therefore, in order to evade Israeli sanctions, Al-Aqsa Bank embarked on joint projects with Citigroup, intertwining itself the bank's Israeli division.[5]
The joint projects with Citigroup led to the establishment of a joint database for Israel.[5] 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.[3][5]
In January 2001 Citibank opened an office in Tel Aviv.[8] Israeli authorities then formally questioned its cooperation with Al-Aqsa Islamic Bank and urged Citigroup to request advice from the U.S. Treasury Department.[8][12] Citigroup has not released any information on the Treasury Department's response; however, the bank has severed its ties to Al-Aqsa.[5][8][12]
At that point, however, Al-Aqsa bank had received funds for at least $1 million through Citibank on behalf of Hamas.[5]
Counterterrorism measures
[edit]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”[7] and froze the assets of the Holy Land Foundation, Beit al-Mal Holdings and Al-Aqsa Islamic Bank.[7] The three entities were providing financial and material support to Hamas.[7]
The Palestinian Monetary Authority canceled the license of the bank as of April 1, 2010.[13]
References
[edit]
- ^ "Fact Sheet on Shutting Down the Terrorist Financial Network". George W. Bush White House Archives. December 4, 2001.
- ^ United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Counterterror Initiatives in the Terror Finance Program. S. hrg. U.S. Government Printing Office. 2005. p. 108. ISBN 978-0-16-074672-7.
- ^ a b Harmon, Christopher C. (2008). Terrorism Today. Routledge. 2nd Edition. Pp.84-85
- ^ 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.
- ^ 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.
- ^ a b Risen, James. (2014). Pay Any Price: Greed, Power, and Endless War. Houghton Mifflin Harcourt. P.79.
- ^ a b c d "The Avalon Project : Shutting Down the Terrorist Financial Network; December 4, 2001". avalon.law.yale.edu. Retrieved 2016-01-08.
- ^ a b c d e Congressional testimony, “Fund-Raising Methods and Procedures for International Terrorist Organizations,” February 12, 2002.
- ^ http://www.pbapalestine.org/general/memers/members2.ht[permanent dead link]
- ^ Levitt, Matthew. (2008). Hamas: Politics, Charity, and Terrorism in the Service of Jihad. The Washington Institute for Near East Policy. P.165.
- ^ “Court Asks State Why it Took $1 Million of HAMAS Cash,” Ha’aretz, September 15, 2000.
- ^ 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.
- ^ "Liquidation of Al-Aqsa Islamic Bank". Palestine Monetary Authority. 2010-05-10. Retrieved 2016-01-08.