NCJ Number
194942
Journal
Jane's Intelligence Review Volume: 14 Issue: 5 Dated: May 2002 Pages: 17-19
Date Published
2002
Length
3 pages
Annotation
This article examines the impact on Hamas (Islamic Resistance Movement) of America's post-911 efforts to freeze the assets of terrorist funding sources and suggests ways in which funding for this terrorist group can be further curtailed.
Abstract
On December 4, 2001, the Bush administration froze the assets of the Holy Land Foundation, the largest Islamic charity in the United States; the Beit El-Mal Holdings Company, a public investment company with locations in East Jerusalem, the West Bank, and the Gaza Strip; and the Al-Aqsa Islamic Bank, which has locations in the West Bank and Gaza. President Bush stated that all three of these institutions are Hamas-controlled organizations that finance terror. The Israeli Ministry of Defense is also continuing its efforts to reduce funding to Hamas. The fact that Hamas does not rely on a single source of income is problematic. Funds for Hamas, drawn largely from outside the West Bank and Gaza Strip, are generated through state sponsors, voluntary contributions, charities, nongovernmental organizations, fraud schemes, and light industry, including the production of textiles and cattle farming. The majority of Hamas funding and logistical support is provided by a number of states, including Iran and Syria. Neighboring Arab states, including Jordan, Qatar, Saudi Arabia, and Iraq, also contain well-established charitable groups that fund Hamas activities. Since Hamas is very active in providing food, educational, and social services to Palestinians, countries with a vested interest in the region, including moderate Arab states, western Europe, and the United States, must significantly increase their aid to the Palestinians so as to reduce the appeal of Hamas throughout the region. The Palestinian Authority must also curtail the rampant corruption that has caused the squandering of enormous amounts of aid to the region, which permits Hamas to gain acceptance as the single provider of social services to Palestinians. Any effort to undermine the financing of the military arm of Hamas will require the array of resources possessed by western Europe, the United States, and moderate Arab states, especially the diplomatic and economic pressure that can be applied to states or financial institutions that are known to support militant Hamas activities. Middle Eastern states must also conduct a review of the financial activities of charities based in their countries. Western financial institutions will expand their markets into the Middle East only after regulatory and law enforcement resources are increased, and cases related to terrorist financing are brought to court. States must organize units to combat terrorist finances or face sanctions from neighboring states and other entities.