Choking off the oxygen of terror: Stronger economic sanctions against Hamas and Iran for the sake of the hostages

It has been more than one year since my son, Itay, was taken hostage by Hamas. He remains in the dungeons of Gaza to this day, along with one hundred other hostages, including six other US citizens. Itay was stationed at the Gaza border to protect local agricultural communities when he was abducted. There has been no word since from Hamas on his status.

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Even with the killing of Hamas leader Sinwar we have not seen any significant progress in the negotiations with neither side readily moving from their current position. We must ask ourselves how Hamas still has faith they can survive and re-establish their control on Gaza. One of my answers is their international financial infrastructure that remains mostly in place that Hamas taps into, even today, to pay each month its militants and supporters.

Itay Chen (center), who is being held by the Hamas terrorist organization, alongside his parents Ruby (right) and Hagit (left).

It’s time to significantly increase the international economic pressure on Hamas and its backers to neutralize their ability to stay in power and force a hostage deal. How? Hamas, like any terrorist organization, needs a lot of cash. Cash allows them to buy weapons, pay their fighters, and build expensive military infrastructure such as their underground tunnel network – far larger than the NY subway system. Every month Hamas pays tens of millions of dollars to its tens of thousands of militants and supporters in Gaza. This needs to end.

Prior to being a Hostage Family, I built a career in venture capital. I invested in hi-tech companies and innovation, including in the world of finance. I know there are sophisticated, surreptitious methods being used to transfer international funds to Hamas without leaving any trace, some of which may be impossible to stop.

But much can be done.

Shutting down Hamas funding requires a distinction between funds originating from state actors and those from non-state actors. The main state actor funding Hamas is Iran, the malicious puppet master controlling those pernicious Middle East terror groups such as Hamas, Hezbollah, and the Houthis in Yemen. In the last few years, they have increased their foreign cash reserves by selling oil as well as military equipment worldwide. This cash finds its way to Lebanon, Gaza, and Yemen via money launderers in Syria, Turkey, and other countries.

Globally, there is an increased awareness around terror financing in light of the hostage families advocacy in Washington DC. This month, the US Treasury announced a new set of sanctions against Iran's petrochemical and petroleum industries as well as individuals in Yemen. International financial action task forces are meeting to explore possible moves, get intelligence updates from the US, Israel, and others, and hopefully implement more measures in the future. However, without the broad backing of the international community, these sanctions will be limited in impact.

I urge the EU and other Western allies to recognize that there is a unique window of opportunity to act more aggressively against Iran following its brazen, direct assault on Israel. Beyond direct financial pressure, the possibility of lifting such sanctions can also be leveraged to force Iran to get its recalcitrant proxies back to the negotiation table.

Non-state-related funding is much more difficult to identify, trace, and block. Hamas has spent years developing its global, clandestine financial network and still has many “charities” set up as fronts for donations throughout the world. Such straw bodies in Western countries including the UK and France as well as Asian countries such as Turkey, Kuwait, Indonesia, and Malaysia are used to fill Hamas’s coffers. There is a significant amount of funds raised “parking” in these countries waiting for Hamas to call for these funds to help them re-establish control on Gaza once the IDF leaves.

It is difficult to sanction funds for “charitable” entities. What has become clear is that the lion’s share of these funds does not go to the people of Gaza to build hospitals or schools, but rather, they are used to buy weapons and to deepen the dependence of the Gazan people on Hamas.

The international banking system needs to get the message: it is no longer “good business” to support these money transfers. If they do not, and continue to profit from such transactions, they must be penalized significantly.

My son Itay is a US and German citizen, so I have had the opportunity to meet with dozens of officials from both countries over the last year. Last month, I met Treasury Secretary Yellen and her team to discuss sanctions. Following these meetings, it has become clear that even more sanctions can be imposed which can help squeeze the lifeblood out of this most heinous terror organization. Pressuring Hamas politically and ideologically has not borne fruit. We can do more. We must.

The air in Gaza’s tunnels is running out for the 101 hostages. Each additional day in Hamas captivity puts their lives in greater danger. That is why the US and the international community cannot continue to think in incremental steps.

Our request from the international community is simple: use everything at your disposal, including tightened economic sanctions, to help us bring Itay and all the hostages back home from a year of agonizing captivity.

Ruby is the father of Itay Chen, a 19-year-old Israeli-American held by the Hamas terrorist organization. Ruby and his wife, Hagit, live in Israel with their two other children.