Bank of China to Answer Terror Financing Charges in New York

A New York court has ruled that the Bank of China will face trial on accusations that it knowingly transferred money to terrorist organizations, and that the funds were used in deadly terror attacks in Israel between 2004 and 2007.

The Bank of China is owned by the Chinese government, and is one of China's four major banks. It's being sued by 50 people, including victims of those Israeli terrorist attacks and their family.They say the Bank of China allowed millions of dollars to be transferred to Hamas and the Palestine Islamist Jihad - both of which are known terrorist groups.

So here's how it all worked: The funds came from terrorist leaders in Iran and Syria and were sent through the US to a Bank of China account in Beijing. That account was operated by senior operatives of the terrorist groups who then transferred them to leaders in the Gaza Strip and West Bank. The funds were then allegedly used in the terror attacks.

According to the plaintiffs, The Bank of China was warned by Israeli authorities in 2005, and asked to prevent the funding, but the bank didn't listen.



In 2008, the plaintiffs filed the lawsuit with the New York Supreme Court. Bank of China argued it never knew the money was used in terror financing, and asked the court to dismiss the case in 2011. Just this August, Israeli media reported that a former Israeli defense staff, who was a key witness in this case, indicated that he was, quote, "inclined to testify" in the case. The witness, identified as Uzi Shaya says he was at those meetings between officials from Israel, China and the Bank of China. In court documents, he says that Israeli officials did indeed warn the Bank of China about the terrorist funding.

There were earlier reports that the Israeli government may have pressured Shaya not to testify in the case, in order to keep a good relationship with the Chinese regime. If he testifies without the approval of the Israeli government, then he could be committing a criminal offense - because he obtained that information while working as a government employee. However, in a letter sent to lawyers representing the terror victims' families, Shaya reportedly said that his moral commitment to fighting terrorism made him inclined to testify, even if the government banned him.

Whether or not the Israeli government will agree to his testimony and whether Shaya will be testifying in court remains to be seen. But after this week's ruling by the New York Appellate Court, it is certain that Bank of China will have to answer these terror-financing charges in court.