Israeli troops raid West Bank money changers

RAMALLAH, West Bank (Reuters) - Israeli troops and security agents raided Palestinian money changers across the occupied West Bank on Tuesday, seizing cash worth more than $800,000, the army and money changers said.

Palestinian security officials confirmed the raids.

Israel accuses militant organizations of using money changers to channel funds to their operatives in the Hamas-controlled Gaza Strip, as well as the Israeli-occupied West Bank.

The Israeli army said its troops entered the homes and offices of a total of 14 money changers. The force arrested five money changers and confiscated three million shekels ($840,000) in Hebron, Nablus, Ramallah, Jenin and Tulkarm.

An army statement accused Palestinian President Mahmoud Abbas's government of doing little to prevent militants from using money changers.

Palestinian officials refused to comment on the Israeli allegations. Some of the money changers denied any financial ties with militant groups.

Last year, Abbas tightened Palestinian money-laundering rules aimed at denying cash to rival Hamas Islamists and boosting foreign confidence in Palestinian banks.

Abbas broke with Hamas after the Islamist faction seized the Gaza Strip last June.

Banks operating in Palestinian areas have shunned Hamas, but the group still brings funds into Gaza through tunnels, Islamic charities and local businesses such as money changers, Palestinian and Israeli officials say.

Under regulations approved recently by Abbas, violators could face between 3 and 15 years in jail and a fine of up to $145,000.

(Additional reporting by Mohammed Assadi; Writing by Ori Lewis; Editing by Sami Aboudi)