Counterterrorism Blog

The Arab Bank, which is the subject of lawsuits over its role as a conduit for terrorists' funds used to kill Americans and Israelis, has been hit with an order by the Treasury Department's OCC, forcing it to cease most of its funds transfer operations and not accept any new deposits. Contributing Expert Lee Wolosky, who serves as Special Counsel on the lawsuits, posted earlier about the Arab Bank's unexpected withdrawal from the U.S. and the ample evidence incriminating the bank. For instance, the families of homicide bombers responsible for the August 2001 Jerusalem pizzeria attack and the June 2001 Tel Avib disco attack received payments of approximately $5300, paid by Arab Bank as part of an alleged payment program for families of "martyrs," using the facilities of the New York branch.

But will Arab Bank actually have to pay for what the OCC calls "unsafe and unsound practices," which were clearly unsafe to those innocent victims of the bombers? The plaintiffs in the lawsuit remain concerned that the OCC enforcement action will still allow Arab Bank to walk away without payment. This gap in financial laws should be addressed by Congress this year, before we find more "Arab Banks" that walk away from their responsiblities.