Hamas can open accounts in secretive Swiss banks. A terror ban will change that

The Swiss government is set to formally ban Hamas. The government is planning on introducing legislation, in the backdrop of the war with Israel, to ban the group and support for it. A ban on Hamas is “the most appropriate response to the situation that has prevailed in the Middle East since 7 October,” when the militant group launched an attack on Israel from the Gaza Strip, said the government in a statement. “The ban has the sole aim of preventing the terrorist activities of this organisation, and the people who support them,” Justice Minister Elisabeth Baume-Schneider said. Baume-Schneider added that banning Hamas would make it easier to expel “dangerous people” and speed up criminal proceedings against “potential terrorists”. The development comes nearly a month after Switzerland’s Office of the Attorney General (OAG) opened an investigation into suspected Swiss financing of Palestinian militant group – launched weeks before the 7 October attacks. Let’s take a closer look: What happened? The act, to be drafted by the end of February, is aimed at giving Swiss authorities the tools to counter Hamas activities or support for the group within Switzerland. As per Swiss.info, the draft legislation – which will be prepared by Federal Department of Justice and Police and the Federal Department of Defence, Civil Protection and Sport – will be submitted by February 2024. The decision did not come easily in the militarily neutral country which takes pride in providing good offices in international negotiations – a position some felt would be jeopardised by such a ban. The government “is aware of the fact that banning an organisation constitutes a significant attack on fundamental rights and could affect Switzerland’s room for manoeuvre in foreign policy”, said Baume-Schneider.

However, the government decided that domestic security interests and the need to fight “terrorist financing” should prevail.

The seven-member Swiss government is formed by ministers from the four biggest parties, and lawmakers are likely to swing strongly behind the draft law. The hard-right Swiss People’s Party – the biggest in the country – has been strongly advocating for a ban. [caption id=“attachment_13421832” align=“alignnone” width=“640”] Switzerland’s draft legislation will be submitted by the end of February.[/caption] “7 October is a turning point in history,” Swiss foreign minister Ignazio Cassis told the press conference in Bern. The European Union and the United States, among others, already designate Hamas as a “terrorist organisation”. On 11 October the Swiss government said it too was “of the opinion that Hamas should be classified as a terrorist organisation”. Cassis said under the draft law, banks and other financial intermediaries will have to detect and report possible activities in Switzerland of Hamas and affiliated organisations. “No Swiss funding should be used by non-governmental organisations to support the actions of Hamas,” added Baume-Schneider, though Cassis specified that at present, the authorities “are not aware of Swiss funds having benefited Hamas and its activities”. Cassis also noted that Switzerland had already banned Al-Qaeda and the Islamic State jihadist group. What could be the fallout? The ban could have a huge impact on Hamas. As per Bloomberg, if Hamas is labelled a terrorist organisation, Swiss banks would have a duty to report financial transactions related to it. Such a move would cut off Hamas’ access to Swiss funds. “Basically the entire West has labelled Hamas a terrorist organisation. In the US, London and the EU, Hamas can’t open bank accounts,” Mark Pieth, a finance and law expert who is emeritus professor at the university of Basel, told Bloomberg. “But in Switzerland it could indeed do this, until now.” Pieth noted that smaller institutions with deal with Islamic banking with Swiss outlets might offer facilities to groups like Hamas.

“This could now become difficult,” he added.

As per Swiss.info, the government on Wednesday also made the decision to cut ties with three Palestinian NGOs. This comes after they found the NGOs breached their code of conduct and violated anti-discrimination laws. The government did not name the three NGOs affected by the suspension, nor did it provide any details on the contractual irregularities identified. The contracts with the three NGOs will not be renewed. The Swiss government days after the attack suspended millions of dollars’ worth of funds to 11 Palestinian and Israeli groups, as per Al Jazeera. The government said they were subject to “in-depth verification of their compliance with the FDFA’s code of conduct and the anti-discrimination clause in their contracts” and that three NGOs had their contracts terminated as a result. However, Swiss.info reported that no irregularities were found for eight of these NGOs with regard to finances. Swiss call for humanitarian pause The Swiss government acknowledged “Israel’s right to ensure its own defence and security”. However, it also called for respect for international humanitarian law and particularly the protection of civilians in the Gaza war. It said there should be pauses in the war to allow for unimpeded humanitarian access. “In view of the dramatic humanitarian situation in the Gaza Strip, the Federal Council stresses the need to ensure unimpeded humanitarian access. Humanitarian pauses are necessary for this purpose,” the statement added.

Bern reiterated the need to restore a peace process based on a two-state solution.

“This approach is the only viable path towards ensuring that both the Palestinian and Israeli populations can coexist peacefully, securely and with dignity,” the statement read. On 7 October, Hamas gunmen crossed the border from Gaza to stage attacks that Israel said left 1,200 people dead, most of them civilians. They said another 239 people were taken hostage. Israel declared war on Hamas, launching an air and ground bombing offensive against Gaza which the Hamas-run health ministry says has killed 14,100 people, thousands of them children. With inputs from agencies