RAMALLAH – The Israeli Knesset's Constitution, Law and Justice Committee Tuesday approved a change to the Prohibition on Money Laundering Law limiting the amount of funds allowed to be transferred to the Gaza Strip. The order by the Israeli Finance Minister Yuval Steinitz will require every person who passes crossings between Israel and the Gaza Strip to report the transfer of money over 12,000 Israel shekel (about $3,200). Israeli Army Radio said that the order came following a request made by Yoram Cohen, the director of the Israeli internal intelligence agency Shin Bet, after the current law permitted transfers from Israel to the Gaza Strip of up to 100,000 shekel (about $27,000) per person without declaring it at the border crossing. According to the report, the Knesset's committee was notified that millions of shekels have been smuggled from Israel to Hamas in the Gaza Strip. The Quartet, which comprises the US, the EU, the UN and Russia, has asked Hamas to recognize Israel, accept peace deals and abandon violence in exchange for an international recognition of the movement. Jihad Al-Wazir, the Governor of the Palestine Monetary Authority, says that the Gaza Strip suffers from financial liquidity due to the Israeli economic siege. The development comes three days after Egypt allowed the entry of construction materials for the Qatar financed projects into the Gaza Strip through the Rafah Crossing for the first time since 2007 and not through the Kerem Shalom Crossing on the border between Israel, the Gaza Strip and Egypt. The crossing is under full Israeli inspection. Qatar's Emir Sheikh Hamad Bin Khalifa Al-Thani and his wife Sheikha Mozah traveled from Egypt to Gaza in October, a political move to break Israel's blockade on Gaza. The Emir declared a rebuilding project which included a housing complex, a hospital and the development of three main roads. Qatar has allocated US 400 million for the project. Israel imposed an economic siege on Gaza Strip in June 2006 when Hamas-led armed groups kidnapped Israeli soldier Gilad Shalit in a cross border raid near the enclave. Israel tightened the siege in June 2007, when Hamas routed security forces of Palestinian President Mahmoud Abbas and ousted his Fatah movement from the area. The Palestinian Ministry of National Economy said that the Palestinian Authority lost $1,9 billion due to siege on Gaza Strip. Israel calls its Gaza blockade a precaution against arms reaching Hamas and other Palestinian armed groups by sea. Palestinians and their supporters say the blockade is illegal collective punishment. Israel loosened its Gaza blockade to defuse international criticism after its commandos killed nine Turks in Mavi Marmara on May 2010. However, Israel still restricts shipments of construction materials through its land crossings with Gaza.
