The Palestinian Authority (PA) intends to impose new sanctions on Hamas involving money transfer companies in the Gaza Strip. Lebanese newspaper Al-Akhbar revealed Jan. 29 that the Palestine Monetary Authority (PMA) in Ramallah, the West Bank, told its licensed money transfer companies that the PMA plans to end or reduce its work in Gaza by the end of February.

The PA has long pressured Hamas to give up the movement's control of the Gaza Strip. Reconciliation efforts have failed.

PA sanctions in recent years have affected all aspects of life in Gaza, forcing 26,000 government employees into early retirement, reducing the salaries of 62,000 employees by 50% and cutting off the money paid to 277 released detainees. In addition, the sanctions delayed for six months the disbursement of social benefits to 76,000 families in the Gaza Strip, suspended the budgets of the health and education ministries, closed the bank accounts of orphanages covering the needs of 40,000 children and greatly reduced medical transfers abroad, especially for cancer patients.

The PMA declined to comment to Al-Monitor about the Al-Akhbar report, giving no reason. However, a close associate of Palestinian President Mahmoud Abbas told Al-Monitor on condition of anonymity, “The PA will do everything to end Hamas’ control over Gaza as quickly as possible and this includes drying up its [support] sources. Hamas brings money into Gaza through money transfer companies in ways the PA cannot detect. These companies are essential to increasing the movement’s budget and revenues.”