The Israel Defense Forces (IDF) said on Tuesday that a money exchange business in the West Bank city of Ramallah was the target of a counter-terrorism operation under the direction of the Shin Bet intelligence agency. The raid is part of Operation Iron Wall, a broad Israeli military campaign launched on January 21 that has focused on significantly degrading the infrastructure of Palestinian terrorist groups in the West Bank.
The IDF detailed that the financial institution was targeted over suspected transfers of funds for Hamas, the Islamist group that is designated as a terrorist group by the United States, Israel, and other countries. The IDF noted that it confiscated “hundreds of thousands of shekels” linked to terrorism in the operation, and five wanted suspects were arrested.
The IDF did not identify the institution, but a Saudi news outlet, Al Hadath, reported that the Arab Bank was the target of the operation. The Arab Bank has been linked to funding terrorism and sued in American courts for supporting terrorist groups.
In 2004, a firm representing US victims of terrorism sued Arab Bank for its role in causing injuries and deaths during the Second Intifada. On September 24, 2014, a jury found the institution liable for maintaining bank accounts for Hamas. The judgment was later overturned, however, and a confidential settlement was reached between the parties.
In 2018, the Arab Bank was again sued in US District Court by American victims of terrorism. “Plaintiffs sought to hold Arab Bank liable for injuries resulting from acts of international terrorism that Palestinian terrorist groups perpetrated in 2001 and 2002, during the Second Intifada,” the Osen LLC law firm stated in a summary. The case continues to be litigated.
Besides the Arab Bank, the IDF has targeted entities abroad that have channeled funds to terrorist groups in the West Bank. On July 18, the Israeli military announced that it had eliminated Palestinian Islamic Jihad (PIJ) member Raed Khaled Hasan Jabayin, who it alleged to have transferred funds to the West Bank for terrorism. Weeks earlier, the IDF killed Islamic Revolutionary Guard Corps (IRGC) commander Saeed Izadi, who was allegedly responsible for funding Hamas and other terrorist groups in the Palestinian territories.
Since the beginning of Operation Iron Wall, Palestinian terrorist groups in the West Bank have reduced their operational activity against Israeli targets. The IDF noted an 85% reduction in terrorist attacks in 2025. Compared to previous years, it is a notable change and indicates that military operations in portions of the northern West Bank, such as Nablus, Tulkarm, Jenin, and other areas, have negatively affected terrorist groups.
The IDF said it will continue to target financial infrastructure belonging to West Bank terrorist organizations, as well as their capabilities to carry out attacks against Israelis.
