A federal courthouse in Brooklyn is the next battlefield between the West and Islamic terror movements.

Representatives of the victims of two suicide bombings in Israel have accused the Arab Bank - headquartered in Jordan with branches in 30 countries - of knowingly handling funds for Hamas. According to the plaintiffs, the Arab Bank therefore shares the responsibility for Hamas's attacks on civilians in Israel.

Hearings began on Monday for the suit which was filed a decade ago.

The plaintiffs claim that funds for the families of suicide bombers were funnelled through Arab Bank accounts and that executives at the bank, which operates in the US and Britain, were aware of the origins and purpose of the money.

The bank is defending the claim and is expected to argue that none of the recipients of the cash appeared on "blacklists" of terror figures compiled by the US.

Eyewitnesses of the suicide attacks, as well as terror and banking experts, are expected to testify. The court's ruling could have major implications for the way international banks conduct their business around the world.