Posted by
J-GOP on Monday, April 28, 2008 9:20:46 AM
A new federal court ruling will permit lawsuits against the Arab Bank to proceed in U.S. courts. The lawsuits argue that the Jordan based bank provided financial support to Palestinian terrorists by providing compensation to the families of suicide bombers.
A lawsuit filed on behalf of terror victims argued that under the Alien Torts Act of 1789 and new anti-terrorism laws U.S. citizens and foreign nationals are permitted to file suit against the bank in U.S. courts. Judge Nina Gershon agreed and Arab Bank will now have to defend itself against nearly 1,600 lawsuits that have been filed against the bank.
Plaintiffs allege that families of suicide bombers were given martyr compensation forms by groups including Hamas and Palestinian Islamic Jihad. When completed, they could be redeemed for payment at Arab Bank locations in the West Bank and Gaza Strip under an insurance plan created by the “Saudi Committee in Support of the Intifada Al Quds” which paid over $5,000 per family. The judge found that Arab Bank provided a conduit for money laundering and financial assistance to relatives of suicide bombers and ruled it amounted to providing an incentive for terrorism.
Though based in Jordan, the bank operates locations in a number of other countries and has a branch in New York City. The bank has consistently stated that their actions could not be linked to victim’s injuries and that they do no support terrorism in any form.
The allegations along with U.S. pressure influenced a stream of new laws in Jordan’s legislative branch that aim to tighten laundering and enforce harsh penalties including a comprehensive anti-trafficking bill passed in May.
For more information on this lawsuit, you can read the following article