Salaam Fayad's Palestinian Authority government is working on a new law prohibiting money laundering, in an effort to strike at Hamas funding sources, Israel Radio quoted an Arab paper on Tuesday morning. According to the London based Al-Hayat, internal Palestinian security reports showed that merchants and importers have been serving as couriers for Hamas, acquiring funds from abroad in exchange for a cut. This has been one of the most common ways of bringing money into the Gaza Strip since the Rafah border crossing was closed following the Hamas takeover in June. Fatah and Hamas have been weighing the possibility of holding talks to mend their coalition, which dissolved after Hamas seized Gaza. However, Israel and the US have warned PA Chairman Mahmoud Abbas that any dealings with Hamas would lead to a breakdown in the diplomatic process with the PA.