WILL NEW DISCLOSURES ABOUT HAMAS' EXTENSIVE BANKING RELATIONSHIPS IN TURKEY AND THE NEW U.S $10m REWARD AFFECT EU COMPLIANCE?

In bed with the Devil himself.

If you are watching unfolding events in the Middle East, and following local media there, you probably know that new information confirming that Hamas has major banking relationships, and lucrative investments, in the region, primarily inside Turkey. While many compliance officers were aware of the close ties between Turkish President Erdogan's government and the global terrorist organization, the extent of Hamas banking there was not a specific topic being discussed during Country Risk assessment, but now that is out in the open, and after news of the renewed American, and Israeli, focus on terrorist financing, it presents a conundrum for compliance directors at international banks in EU member countries who trade with Turkey.

The US Treasury Rewards for Justice announcement of Hmas' primary terrorist financiers, posting a ten million dollar reward, and coming on top of existing OFAC sanctions, plants a bull's-eye squarely on the front door of any bank whose frontline compliance officers are foolish enough to approve client transactions later determined by the US to be terrorist financing operations. We note that some of the pipelines come through Istanbul, the center of Hamas' orchestrations of terrorist activities against targets in the West Bank (a/k/a Judea and Samaria) and Israel proper.

Hamas supporters in Turkey

How can any compliance  department at a bank located within the EU reduce terrorist financing risk to a manageable level, while allowing extensive client trade and financial transactions with Turkish banks? Therein lies the problem, and given America's resurgent focus on terrorist financing, is there a solution save redlining most transactions with Turkish banks ? After all, there has been no public disclosure of the names of the Hamas-friendly banks, which reportedly are paying it for the use of its substantial capital. Which are to be avoided, compliance will ask, only to conclude that such information is classified. We offer no answers, but will be seeking to learn which financial institutions have the terrorist taint staining but supplementing their profits. Stay tuned for an update. 

Terrorist leader MUHAMMED DEIF holding a USD