Arab Bank verdict risks erosion of anti-terror controls -industry

September 24, 2014
Brett Wolf

A U.S. court verdict this week finding that Arab Bank Plc provided material support to Hamas could cause banks to cut ties to foreign banks and customers and make it even harder to monitor the financing of militant networks, banking industry representatives said.

A U.S. jury on Monday found the Jordan-based Arab Bank liable for providing material support to Hamas and said it must compensate victims of two dozen attacks attributed to the U.S.-designated terrorist group in Israel and the Palestinian territories.

Nearly 300 Americans, who were either victims or related to victims of attacks linked to Hamas, had sued Arab Bank in 2004 under the Anti-Terrorism Act, which lets victims of U.S.-designated foreign terrorist organizations seek damages.

Arab Bank immediately said it would appeal the verdict and cited a series of what it considered legally incorrect court rulings that restricted its ability to mount a defense.

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