Hamas steals 20-40% of Gaza civilians’ salaries

In a broadcast on official PA TV, a reporter in the central Gaza city of Deir al-Balah claimed that 28% of salaries or remittances are siphoned by Hamas-affiliated entities.

By Sveta Listratov, TPS

A shadowy market of Hamas-linked money changers has become Gaza’s gatekeepers of cash, enriching the terror group while ordinary Palestinians find that accessing salaries can cost as much as 40 percent, The Press Service of Israel (TPS-IL) has learned.

“Hamas has essentially become Gaza’s shekel bank. It controls the flow of cash, oversees networks of money changers, and profits from every transaction — whether it’s aid, salaries, or fuel,” Eyal Ofer, an expert on Gaza’s economy and a former government advisor told TPS-IL.

“In Gaza, a whole industry of money changers has emerged. People are getting aid via banking apps, but to turn that into real currency, they must go through brokers. They withdraw funds from these digital wallets and charge outrageous fees — anywhere between 20% and 40%. This is one of the ways Hamas is making a profit,” he points out.

With Gaza’s banks closed, ATMs down, and aid distributed via digital apps, Ofer estimates that 100 to 150 money changers are currently active in Gaza. At least half are using Hamas funds, and some have been designated for terror financing by Israel’s Ministry of Defense.

“At least half of the active money changers in Gaza operate using Hamas-controlled cash,” Ofer estimated. “Some of them are paid by Hamas, others share profits or offer strategic cooperation.”

Said Khudari, killed in an IDF April 4 airstrike in Gaza City was, according to the army, directly tied to Hamas’ financial apparatus through the Al Wefaq Co. fund, which he headed. Israel designated Al Wefaq as a terror organization “due to its involvement in the funneling of money to terrorist entities,” primarily Hamas.

Foreign Minister Gideon Sa’ar asked the Bank of Israel to cancel a series of 200 shekel bills that were introduced to the Gaza Strip. The Bank rejected the proposal.

In a letter to Bank of Israel Governor Prof. Amir Yaron on Thursday, Sa’ar wrote, “the bulk of Hamas’ economic vitality in the Gaza Strip is based on a stockpile of billions of shekels, in cash and banknotes, which serves it as working capital. The funds are paid as salaries to activists and returned to them within a short time in the form of taxes that they collect from merchants in the Gaza Strip.”

Sa’ar added that a team of experts estimated that “canceling the legal circulation of these notes in Israel or at least in the first and immediate stage – canceling the series of 200 shekel notes that were transferred to Gaza in previous years – will dramatically harm Hamas’s economic capacity.”

‘I Lose 30% Every Time’

With no cash access through formal channels, money changers have become the only option for Gaza residents.

Monthly aid from UNICEF, the World Food Programme, and the Palestinian Authority (PA) totals over NIS 50 million ($13.5 million) channeled through Arab digital wallets such as PalPay and Jawwal Pay.

But with almost no liquidity in banks and no way to withdraw directly, citizens are forced to find a “broker.”

“I go to the market and meet people whose job is to provide cash in exchange for a fee,” Gaza resident Shahab Yousef told TPS-IL. “The fee is 20–30%. If I transfer 1,000 shekels [$271] I get back 700 [$190],” he said.

“For big purchases, I pay digitally. But at the market, I need cash, and I lose 30% every time,” Yousef added.

Another Gaza resident, Nidal Qawasmeh, expressed similar frustration to TPS-IL.

“These people are charging 30% just to give you cash. I just want to take care of my family, but everything costs me more because of this. Prices are insane.”

The issue is further complicated by mixed messages from authorities. In April, Gaza’s Chamber of Commerce launched the “Stay Ready, Stay Electronic” campaign, promoting digital payments with the slogan, “Cash Isn’t Necessary.”

But the campaign was widely mocked online. Commenters noted that Taj Mall in Gaza City, where the campaign launched, still demands half its payments in cash.

Critics further accused the Chamber of Commerce of hypocrisy, saying many of its own members refuse to accept digital payments. With unreliable internet, poor digital infrastructure, and inconsistent pricing, many Gazans appear to see the cashless push as unrealistic.

The Gaza Chamber of Commerce has limited independence from Hamas and remains functionally dependent on the terror group.

‘It’s About Control’

It seems the terror group also sends its representatives to guide the money changers on how funds should be transferred.

In one viral Telegram post, a man described a money changer openly holding bundles of 200-shekel notes next to Hamas police.

In the comment in a discussion group of the activist Hamza Al-Masri dated mid-April, a Palestinian vented, “The money changer, I see him with the (Hamas-employed) policemen … I swear, he holds a bundle of 200-shekel notes, and he’s the one holding the bundle. The police soldiers with their weapons are standing in front of him, leaving him alone. You want to convince me they’re not working together?”

The PA also pointed fingers at Hamas.

As Palestinian Media Watch reports, in a broadcast on official PA TV on November 13, a reporter in the central Gaza city of Deir al-Balah claimed that 28% of salaries or remittances are siphoned by Hamas-affiliated entities.

Additionally, a November 10 editorial in Al-Hayat Al-Jadida, the PA’s official daily paper, accused Hamas of monopolizing humanitarian aid for profit.

“The aid that is arriving there [in the northern Gaza Strip] after many hardships… is exclusively controlled by the Hamas militias and others, until it arrives in the greedy free market of commerce that craves forbidden profit,” the paper said.

Said Ofer to TPS-IL, “What’s happening is that Hamas is not only profiting from the cash it holds in Gaza but also laundering it through all this activity. My estimate is that they’ve accumulated around four billion shekels [$1.08 billion]. This isn’t a money shortage issue; it’s about control.”

At least 1,180 people were killed, and 252 Israelis and foreigners were taken hostage in Hamas’s attacks on Israeli communities near the Gaza border on October 7. Of the 59 remaining hostages, 36 are believed to be dead.

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