NY Times: Arab Bank Liable for Supporting Terrorists

Arab Bank Liable for Supporting Terrorist Efforts, Jury Finds

A federal jury on Monday found that Arab Bank was liable for knowingly supporting terrorist efforts that were connected to 24 attacks in the Middle East.

The closely watched case, in New York City, was the first civil case brought against a bank under the Anti-Terrorism Act to go to trial, and the verdict was expected to have a broad impact on similar legal efforts to hold financial institutions responsible for wrongdoing by their clients, even if the institutions had followed banking rules.

Arab Bank, a major Middle Eastern bank with $46 billion in assets, said that it followed compliance procedures, and that any transactions conducted on behalf of terrorists were executed in error.