5 West Bank money exchange firms to be blacklisted over transfers to Hamas, PIJ

21 arrested, $2.8 million seized in overnight raids on 9 branches of companies across West Bank

Israeli forces seized around NIS 10 million from nine money exchange branches in the West Bank overnight during a raid on companies found to be transferring funds to Hamas and the Palestinian Islamic Jihad, December 28, 2023. (Israel Defense Forces)
Israeli forces seized around NIS 10 million from nine money exchange branches in the West Bank overnight during a raid on companies found to be transferring funds to Hamas and the Palestinian Islamic Jihad, December 28, 2023. (Israel Defense Forces)

Defense Minister Yoav Gallant will declare five money exchange offices in the West Bank to be terror organizations after millions were seized in overnight raids on their branches, a statement from his office said Thursday.

The decision to declare the businesses as such came due to alleged money transfers made to Hamas and the Palestinian Islamic Jihad in Gaza that were uncovered in a recent investigation by security agencies.

Twenty-one people were arrested by security forces in the West Bank cities of Ramallah, Jenin, Hebron, Tulkarem, Attil and Al-Bireh in connection with the transfer of funds to the terror groups, and around NIS 10 million ($2.8 million) was seized from nine branches of the five money exchange companies, a joint statement by the military, Shin Bet security service and police said.

Forces also confiscated documents, phones, recording devices and safes.

During the operations, an IDF drone struck gunmen in Jenin that fired at troops. Soldiers also returned fire at Palestinians who threw explosive devices and rocks during the raids in other areas of the West Bank. The military did not confirm if there were casualties in the strikes.

Palestinian Authority health officials said overnight a teenager was killed and 14 were injured in clashes during the raid in Ramallah, while nine were injured in Jenin, Hebron and Nablus.

A Palestinian man inspects the damage to a money exchange shop, after a raid by the Israeli army, in the city of Ramallah in the West Bank on December 28, 2023. (Zain JAAFAR / AFP)

The arrests came after an investigation carried out by the IDF, Central Command, the Shin Bet, Israel Police, Israel Money Laundering and Terror Financing Prohibition Authority, National Bureau for Counter Terror Financing of Israel and Israel Tax Authority.

Most of the international funding for the terror groups comes from Iran, which has sponsored Hamas with some $100 million annually and the PIJ to the tune of tens of millions, according to Gallant.

Hamas has also received over $1.5 billion in disbursements from Qatar over the past decade. The funds are officially aimed at covering salaries for public workers, fuel purchases, and transfers to poor families, but the terror group deducts part of the payments and keeps it for its own operations.

Hamas’s fundraising efforts have grown in sophistication and complexity over time, as law enforcement authorities have stepped up their tracking efforts.

Israel and the United States have in recent years targeted efforts by terror groups to raise money using cryptocurrencies.

Israeli authorities are also calling for a crackdown on fundraising campaigns for Gaza for ostensible humanitarian purposes. Following the start of the Israel-Hamas war, the National Bureau for Counter Terror Financing reported a “significant increase in the scope of online crowdfunding campaigns​,” and published a list of 11 ongoing fundraising campaigns for Palestinians that it considers to be affiliated with Hamas.

The list includes campaigns launched by Muslim charities based in Qatar, Kuwait, Turkey and Western countries, which collect donations by credit card, Google Pay and other mainstream online payment methods.

Gianluca Pacchiani contributed to this report.

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