The Defense Ministry has released numbers showing the amount of terrorist funding and assets it has seized, frozen, or otherwise blocked since 2018, amounting to about 3.7 billion NIS, according to reporting by Calcalist.
The effort is spearheaded by the National Bureau for Counter Terror Financing, a Defense Ministry office established to replace an IDF unit that previously handled the subject. The Bureau is headed by Paul Landes, who headed the Money Laundering Authority from 2009 to 2015.
While 3.7 billion NIS is a significant sum of money to deny Hamas, and although Israel has ramped up efforts to hamper terror financing since the war began, it still faces significant hurdles in choking off Hamas' money channels, according to Calcalist's analysis.
The first is that it does not have control of the Rafah crossing with Egypt ever since the IDF disengaged from the Gaza Strip in 2005. This crossing, especially the tunnels underneath it, serve as the main supply route for Hamas' arms and money smuggling. Without direct control and a presence there, it will be hard to choke off funds.
Another hurdle is the problem of humanitarian aid and funds meant for the ordinary residents of Gaza, which are easily stolen or skimmed by Hamas authorities or terrorists, much like they steal many an aid truck coming in now.
Perhaps the biggest difficulty, however, is the fact that Hamas and terror organizations more generally prefer hard cash and especially dollars. Crypto is simply too complicated to use for paying troops or buying supplies.
Furthermore, cash is a lot easier to hide and a lot harder to block than electronic money transfers from major banks, which is why Hamas relies more on the traditional honor-based "hawala" brokerage system prevalent throughout the southern part of the Eastern Hemisphere.
Still, officials are realistic but not overtly pessimistic, with one senior official telling Calcalist that "the economic war against terror organizations is long, difficult, and Sisyphean. We have successes, but we can't stop everything."
