Israeli Police Seize Hamas Terror Funds in Eastern Jerusalem

Latest Developments

Israeli Border Police, Jerusalem police officers, and agents from the Israel Tax Authority carried out a raid in the eastern Jerusalem neighborhood of Shu’afat against a Hamas member suspected of laundering money and financing terrorist activities, according to a police statement on September 23. Israeli police said that the unnamed Hamas operative laundered and transferred funds for Hamas through businesses he owns in the Shu’afat and nearby Anata. Israeli law enforcement officers confiscated more than $50,000 in cash as well as checks totaling $260,000, along with business receipts and electronic equipment. Together with the suspect, police arrested five Hamas operatives.

Expert Analysis

“The Israeli authorities busting a key Hamas operative who was implicated in money laundering in Jerusalem is an important step in interdicting the financial tentacles of terror groups. Hamas has been seeking inroads in Jerusalem, in places like Shu’afat. As the war in Gaza continues, it is critical to prevent Hamas from consolidating its presence in other areas for the purpose of financing its operations.” — Seth J. Frantzman, FDD Adjunct Fellow

“Combatting terrorism in the West Bank requires a sound strategy. While counterterrorism operations may remove an immediate threat, financial resources are the lifeblood needed for groups like Hamas and Islamic Jihad to operate. Identifying and dismantling the financial networks that are supplying funds for these groups to purchase arms and other essential resources is a crucial component of a strategy to end the wave of violence that has plagued the West Bank for over three years.” — Joe Truzman, Senior Research Analyst at FDD’s Long War Journal

Corrupt Money Exchanges Finance Terrorism

On January 22, the U.S. Treasury imposed sanctions on Hamas-affiliated financial exchanges, their owners, and affiliates operating in the West Bank and Gaza. Among the individuals and entities sanctioned, Treasury highlighted the Gaza-based Shamlakh and Herzallah as networks that operate in Gaza and the West Bank.

“Hamas has sought to leverage a variety of financial transfer mechanisms, including the exploitation of cryptocurrency, to channel funds to support the group’s terrorist activities,” Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson said.

On March 27, Treasury sanctioned two individuals and three entities that were acting as financial facilitators in Hamas’s fundraising efforts. Treasury said that Gaza Now and its founder, Mustafa Ayash, collaborated with Al-Qureshi Executives and Aakhirah Limited, along with their director, Aozma Sultana, on multiple fundraising initiatives on behalf of Hamas.

Despite Treasury’s sanctions, money exchanges possibly linked to financing terrorism in the West Bank continue to operate. In July, Israeli troops raided money exchange shops in the West Bank allegedly linked to terrorism-financing operations.

Related Analysis

“10 Things Washington Should Do to Hold Hamas Accountable,” FDD Insight

“U.S., U.K. Impose New Sanctions on Hamas Finance Officials and Representatives,” FDD Flash Brief

“10 Things to Know About Hamas and Qatar,” FDD