U.S. Treasury says charity group supports terrorism

WASHINGTON Tue Aug 7, 2007 3:58pm EDT

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WASHINGTON (Reuters) - The Treasury Department on Tuesday named Al-Salah Society, a Hamas charitable organization in the Palestinian territories, as a supporter of terrorism and said it was cutting it off from the U.S. financial system.

"Hamas has used the Al-Salah Society, as it has many other charitable fronts, to finance its terrorist agenda," the director of the Treasury's Office of Foreign Assets Control, Adam Szubin, said in a statement.

Treasury said the Al-Salah Society had helped recruit youth to support Hamas' activities and had financed commercial stores and land purchases for Hamas. It said the Al-Salah Society has employed several Hamas military wing members over the years.

"Today's action alerts the world to the true nature of Al-Salah and cuts it off from the U.S. financial system," Szubin said. The action means the group is not allowed to hold U.S. bank accounts nor conduct any financial transactions through the U.S. banking system.

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