With an indictment unsealed last week, Israeli investigators have sounded an alarm over the illicit use of global aid money to fund Palestinian terrorism. Prosecutors in the city of Beersheba allege that Mohammed El-Halabi, Gaza Strip director of the California-based charity World Vision, transferred tens of millions of dollars to Hamas to buy weapons and build underground attack tunnels. Although World Vision denies fault, the governments of Australia and Germany have halted donations pending investigations.

This revelation...