Potential game changer in terror finance law

Money Jihad 30 November 2012

A ruling by the New York Court of Appeals may change the way terror financiers take advantage of correspondent bank relationships in the U.S. Kudos to Shurat HaDin for pushing this case forward (and for linking to the news too).

This ruling will probably cause a stir among bank compliance circles because it could be difficult and expensive to conduct sufficient screening of correspondent banks. But the alternative, which is to passively condone terrorist transactions in your bank that originated from a foreign bank, isn’t such a great alternative.

Given the size and centrality of the financial sector in New York, this state-level ruling will have international consequences.

From the Jerusalem Post on Nov. 21:

Lebanon War victims alter game of terror financing

Terror groups may no longer be able to do transactions in US dollars after a groundbreaking ruling by the highest state court in New York, the New York Court of Appeals, announced Shurat Hadin, the Israel Law Center, on Wednesday.

The ruling was issued on Tuesday in favor of victims of Hezbollah rocket attacks from the 2006 Lebanon War and could be a "game changer” in the global financial war on terror financing. (continue reading...)