HOW IS HAMAS PAYING FOR CHINESE-MANUFACTURED WEAPONS SEIZED BY THE IDF IN GAZA?

Chinese Type 56 Assault Rifle (AK-47 copy)

According to a number of articles published in Middle East media, reporting on the ongoing war between the State of Israel and Hamas in the Gaza Strip,  massive amounts of Chinese-made arms, ammunition and explosives have been confiscated by the Israel Defense Forces o n the battlefield, in tunnels, schols, mosques, warehouses and United Nations properties. Inasmuch as China states that it maintains a strict policy of sellings arms only directly to national governments, and not to non-state actors, 

Let's assume for the sake of argument that this policy was followed.These weapons were then most likely acquired from third parties. As compliance officers we ask who paid for them, and what were the financial details of what must have been extremely large transactions; which banks or NBFIs were involved, were payments made using bulk cash; were US Dollars involved; what sanctions were bypassed or violated; were bribes and kickbacks paid to individuals in the financial services sector. These are all good questions that must be answered.

The role of Egyptian players in the financial transactions, as well as the physical transfers, shipment, and delivery of these arms is of primary importance, given that the established smuggling tunnels into southern Gaza originate in Egyptian territory. If USD currency, obtained from both Qatar aid as well as PA payment to local government officials employed in Gaza, was smuggled out, to pay for the Chinese weapons, the role of entities and companies that facilitated the operation is also a matter of concern. 

Given that there have been major seizures of documents from several Hamas Command & Control headquarters, we trust that some of that information will be declassified and released to the financial world, especially in connection with indictments or civil proceedings by Western law enforcement agencies and regulators. Which banks will be charged with Providing Material Support to a Designated Terrorist Organization? We do not have any information yet, but we will be watching for any clues that surface, identifying the guilty entities and parties.