Treasury names charity as supporter of Hamas

WASHINGTON (Reuters) - The U.S. Treasury Department on Wednesday named an Islamic charity as a group aiding Hamas militants in the Middle East and prohibited Americans from dealing with the Union of Good organization.

The Union of Good helps funnel money to Islamist fighters in the West Bank and Gaza, the Treasury Department said, adding that the government will seize any funds in the United States controlled by the charity.

"Terrorist groups such as Hamas continue to exploit charities to radicalize vulnerable communities and cultivate support for their violent activities," Treasury Under Secretary for Terrorism and Financial Intelligence, Stuart Levy, said in a statement.

Hamas, which seized Gaza last year after routing the forces of Palestinian President Mahmoud Abbas, is pushing for an independent Palestinian state.

Reconciliation talks between Abbas and the political wing of Hamas collapsed last week, with a key dispute over when to hold an election.

(Reporting by Patrick Rucker; Editing by John O'Callaghan)