In a “Mafia-like” robbery, Israeli Occupation Forces (IOF) on Wednesday morning raided Palestinian bank branches in the West Bank city of Ramallah, confiscating around $7-9 million from 400 Palestinian accounts, in a raid condemned by the Palestinian government and criticized by the United States.

“We seized between seven and nine million dollars in cash from 400 accounts of private individuals, families and institutions,” an Israeli official told a press conference in Tel Aviv on Wednesday.

Israeli “Defense” Minister Shaul Mofaz claimed in a statement that the confiscated sums would go towards “humanitarian actions” for the Palestinian people.

The Palestine National Authority (PNA) blasted the IOF assault as a violation of Palestinian – Israeli accords and a breach of an understanding with the United States.

“This is a Mafia-like assault, no more no less, that should be dealt with by a very serious way,” Palestinian Prime Minister Ahmad Qurei said on Wednesday.

Presidential Secretary General Al- Tayeb Abdel-Rahim told Reuters, “This is provocation. They are asking for Palestinian retaliation. I do not see any justification (for their action).”

Palestinian Minister of Finance Salam Fayyad said that there is a Palestinian-US-Israeli understanding prohibiting any Israeli activity against the Palestinian banking system, adding: “The aggression against the banks in Ramallah yesterday is a flagrant violation of the agreements between the Palestinian and Israeli sides. It hurts the Palestinian economy and its institutions.”

Similarly, the Governor of the Palestine Monetary Authority (PMA) Amin Haddad condemned the Israeli assault on Palestinian banks as “a violation of all the accords and rules that govern Palestinian-Israeli relationship” regarding the Palestinian banking system.

Haddad appealed to all international institutions and states to confront this Israeli assault, which will only create chaos and complicate the economic crisis of the PNA.

Palestinian Cabinet Minister for Negotiations Saeb Erekat said the raids were unjustified and could provoke a run on the banks Thursday.

“This is destructive to the Palestinian economy and people are really worried,” Erekat said.

US: Israel Should Have Coordinated with PNA

The US State Department criticized Israel for raiding the banks without coordinating with Palestinian financial authorities and said the raids could destabilize the Palestinian banking system.

State Department spokesman Richard Boucher said, “We certainly recognize the need to cut off funding for terror organizations” but added that Israel should work closely with the authorities who supervise Palestinian banks to ensure the money does not get to terror groups.

“Some of these actions that were taken risk destabilizing the Palestinian banking system, so we would prefer to see Israeli coordination with the Palestinian financial authorities in order to stem the flow of funds to terrorist groups,” he said.

Boucher said the United States, Israel and the Palestinians, working together, have introduced better accounting procedures and more openness about the flow of funds over the past year and a half.

“That's been a positive thing, both for the Israelis but especially for the Palestinians, who see where their money goes and who see this being handled appropriately for the people who live in these territories,” Boucher said.

Targeted Accounts: Israeli Claims

A statement by Israel’s Government Press Office claimed late Wednesday that the operation targeted bank accounts that were controlled by or that had received money from three organizations: Lebanese Hezbollah, Palestinian Islamic Jihad and the Islamic Resistance Movement, known as Hamas.

An Israeli security official said the raids also targeted accounts of “terrorist operatives” and their families and “outlawed organizations,” principally Islamic charities that are suspected of funneling money to “terrorist” groups.

“The goal of today’s operation is to impede the terrorists organizations’ activities and reduce their financial capabilities on the ground,” the statement said.

Four branches of two banks, the Arab Bank and the Cairo-Arab Bank, were raided, Israeli security officials indicated. Israeli occupation police had search warrants for specific accounts, and “the banks will get a list of the accounts,” one of the officials said. “We are giving the banks clear notice of what we’ve done.”

IOF soldiers covered up or disabled bank security cameras and confined employees to back rooms, witnesses said. Customers were allowed to leave after ID checks.

The Israeli officials said that the account holders who had funds confiscated would be allowed to appeal the seizure.

The stolen funds will be used for Palestinian “human” goals, the IOF claimed.

“Mofaz, this evening (Wednesday), February 25, 2004, directed Coordinator of Government Activities in the Territories Maj.-Gen. Yosef Mashlev to immediately plan how to transfer forthwith all of the terrorist funds that were seized in today’s operation in Ramallah to a series of humanitarian goals in Palestinian society,” Mofaz’s media adviser said in a statement Wednesday.

Mofaz will submit the aforementioned directive to the Israeli Cabinet, the statement added.

At Least 45 Palestinians Wounded

At least 45 Palestinian protesters against the IOF raid into Ramallah banks were injured, four seriously, Palestinian hospital officials told the Washington Post.

The IOF raid on Wednesday was one of the largest invasions in months in the city, a major political and commercial town just north of Jerusalem where Palestinian President Yaser Arafat’s headquarters, besieged and battered since December 2001, is located.

Witnesses said Palestinian protesters threw stones at IOF troops and Molotov cocktails at military jeeps, armored personnel carriers and trucks that fanned out in several neighborhoods of down town Ramallah to enforce a curfew during the raid.

IOF soldiers responded with stun grenades and fired tear gas and rubber-coated steel bullets as police from Shin Bet, Israel’s general security service, entered the banks and searched computer and account records.

Two of the protesters were shot with live bullets, one in the chest and one in the leg, said Abed Rahmas Salim, an emergency room doctor at Sheik Zayyed New Ramallah Emergency Hospital, where 29 people were treated for mostly minor injuries.

Another 16 people were treated at Ramallah Government Hospital, a spokesman said.