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 [3] The bank's licence was revoked in 2010.
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]
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]
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]
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.
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]
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]
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]