Though it is no longer called the “war on terror,” the Obama administration has been eager to be seen as a scourge of international terrorism. It has continued many of the Bush administration’s security policies with regard to seeking intelligence on terror groups and has been so aggressive about pursuing a policy of assassinating terrorists that liberals like Ron Wyden and libertarians like Rand Paul have attacked it. But when it comes to shutting down the financing of some terrorists, the administration is something of a house divided. As the New York Times reports today, the State Department is pressuring the Department of Justice to intervene on behalf of a Jordanian bank in a federal lawsuit in which it stands accused of funneling money to terrorists who killed Americans. Apparently, Foggy Bottom wants the administration to support the Arab Bank’s effort to get the U.S. Supreme Court to overturn sanctions imposed by a lower court because of the financial institution’s refusal to hand over customer records.
While this sounds like a complicated litigation, the issues at stake here are not difficult to comprehend. At issue is whether the United States will ignore the standards it has applied to other terror-related cases as well as its past stands on foreign bank secrecy rules in order to help get a bank owned by friendly Arabs off the hook for their role in funding the murder of American citizens. If President Obama’s solicitor general does what the State Department is asking him to do, it will mean the nation is not only turning its back on American victims of Hamas terrorism. It will also show that the administration’s much ballyhooed toughness on terror doesn’t apply to its efforts to bring supporters of Palestinian murderers to justice.
The case, Linde v. Arab Bank, revolves around the efforts of relatives of Americans killed by Hamas terrorists during the second intifada to use the federal Anti-Terrorism Act to bring those who funded the Islamist terror group to book for aiding and abetting these atrocities.
As the Israeli Law Center, the group that has pursued a relentless and courageous campaign to hold terror funders accountable, notes on its website:
The Arab Bank is a Jordanian financial institution that has funneled funds for organizations claiming they are legitimate charities. In fact, they were routing large sums of money to support the violent activities of Hamas and other terrorist organizations. These organizations served as agents of Hamas and used the Arab Bank to receive deposits and process wire transfers. The Bank was aware that these organizations are fronts that support terrorist activities, such that the Bank’s continued provision of services to these groups facilitated their illegal activities. One account number belongs to Hamas itself and was used to collect funds in support of its violent activities.
Further, the Saudi Committee In Support of the Intifada Al Quds (“Saudi Committee”) was established as a private charity in Saudi Arabia whose purpose was to support the intifada and the families of the terrorists who have died, as well as subsidize the Palestinian terror campaign. The Saudi Committee furnishes awards to terrorists’ families as a reward for suicide attacks. The Arab Bank is the exclusive financial administrator for the Saudi Committee. These payments create an incentive to engage in terrorist acts by rewarding all Palestinian terrorists, regardless of their affiliation with a particular group.
Despite the Arab Bank’s pleas of innocence, the facts of their funding of Hamas are not in dispute. But, as the Times notes, Secretary of State John Kerry doesn’t want to upset either Jordan or the Saudis any more than they have already been by Obama administration policies that have strengthened Iran at their expense. What he wants is for the U.S. government to plead diplomatic necessity to the courts and tie up the plaintiffs in circles.
But in doing so, the Justice Department would be flouting the same standards they have applied to other cases in which they have doggedly pursued the funders of al-Qaeda and other groups that have targeted Americans as well as in tax cases in which the U.S. has sought to override the efforts of foreign banks to maintain secrecy about their activities.
Claims of diplomatic necessity are contradicted by the experience of the post 9/11-era in which all banking institutions have been forced to disassociate themselves with terror or face the consequences. Jordan will survive a court defeat by the Arab Bank, as will the Saudis.
A decision by the administration to side with the Arab Bank against terror victims would be an outrageous abuse of power as well as of hypocrisy. U.S. law demands that the government allow those who have been hurt by terrorists to pursue the funders of murder. For President Obama and Secretary of State Kerry to interfere with the course of justice would be yet another signal that their anti-terror principles don’t apply to the victims of Palestinian killers.