In a verdict that has far-reaching consequences for global banking, a federal jury in New York has found Arab Bank liable for funding terrorism in Israel between 2000 and 2004.
300 American victims and their families sued the Jordan-based bank, saying they violated the Anti-Terrorism Act by knowingly funding Hamas during the second Intifada. The plaintiffs convinced a jury that the bank gave material support in 24 attacks where Americans were hurt or killed.
This is the first time the Anti-Terrorism Act has been used civilly against a bank.
"This will reverberate through the banking world," said Tab Turner, lead attorney representing the victims. "You run your money through Madison Avenue and downtown New York, you pass it back to the Middle East to terrorists, you will pay."
The verdict opens the door to more lawsuits, effectively making banks liable for what their clients do even when the banks follow the law.
A future jury will decide damages against Arab Bank.