 "Palestine, Gaza, Israel, war, conflict")
In northern Gaza, armed gangs, including those supported by Hamas, have stolen at least $120 million from banks over the past two months, the Financial Times (FT) reported citing United Nations estimates. This region is grappling with a severe cash shortage amid the ongoing conflict with Israel.
By mid-May, FT reported that these thefts accounted for about one-third of the cash stored in now inaccessible vaults. An additional $240 million remains sealed in bank vaults, some of which are encased in concrete to deter further looting as civil order deteriorates in the Israel-besieged region.
These robberies have raised concerns among Israeli officials that the stolen funds might bolster Hamas’s insurgency, given the militant group’s control over limited cash resources in the closed wartime economy.
The war and Israeli restrictions on cash flow and armoured vehicle movement have severely limited physical currency availability. Residents are forced to pay a fee a week in advance just to queue at one of the few functioning ATMs in central Gaza, serving over two million people, the report claimed.
Robbers on a heist spree in Gaza
The most notable bank heists occurred on April 17 and 18, shortly after the Bank of Palestine encased its Rimal branch vault in concrete. Despite these measures, thieves used explosives to breach the vault on April 17, making off with approximately $31 million, as described by the Financial Times.
On April 18, when the bank attempted to reopen to allow customers to withdraw funds, they found armed groups already inside. Shots were fired, and an employee suffered a suspected heart attack before others were forced to open the vault at gunpoint, resulting in the theft of $36 million. These events were initially reported by Le Monde.
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Despite the threats to its employees, the Bank of Palestine remains stable, with $5.41 billion in customer deposits, primarily in the West Bank, the newspaper report noted. At the war’s outset, its liquidity coverage ratio was over 740 per cent, compared to less than 200 per cent for US and UK banks. The bank has stated that it has taken all necessary measures to maintain stability, though exact figures on the stolen amounts are hard to confirm due to the challenging situation on the ground.
While banking officials avoid directly blaming Hamas, Israeli officials believe that the stolen funds in the hands of Gaza’s highest authority could fuel further insurgency against Israeli forces.
Earlier, smaller-scale thefts had already seen around $7 million taken from Bank of Palestine branches by April, mostly from ATM cassettes by armed gangs who drilled into the buildings.
Financial impact of thefts on Gaza residents
The thefts have exacerbated the financial crisis for Gazans, who struggle to find banknotes to purchase essential supplies amid spiralling inflation after eight months of war. The blockade on fresh Israeli shekels has forced residents to use worn Jordanian dinars and dwindling supplies of US dollars.
The Israeli military has seized at least $27 million and transferred it to the Bank of Israel to prevent Hamas from accessing it. Meanwhile, wealthy Palestinians have sent millions to an Egyptian tour operator to facilitate their escape from Gaza, paying $5,000 per person in new $100 bills.
Before the war, Gaza had over 90 ATMs and 56 bank branches, which dealt primarily in Israeli shekels. Cash was moved with Israel’s cooperation, and the Bank of Israel would replace worn notes. Bank transfers remain possible to some internationally recognised banks in Gaza, but accessing these funds has become increasingly difficult and costly.
In response to the cash shortage, the Palestine Monetary Authority launched a commission-free electronic payment system on May 8. However, transferring money digitally requires electricity and internet access, both of which are scarce.
In northern Gaza, where aid is rare and hunger is widespread, traders charge a 20 per cent commission on bank-to-cash transfers, FT said.
