Israeli security forces raided five foreign exchange bureaux in the West Bank early Wednesday, confiscating millions of shekels Israel suspects is earmarked for terrorism.

Two money changers were arrested in the operation. At least some of the money is believed to have originated in Lebanon and Syria, security sources said.

The troops entered the cities of Nablus, Jenin, Tul Karm and Ramallah overnight, pulling money changers from their homes and forcing them to open their businesses, two Jenin money changers said.

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The IDF refused to give details of the operation, saying only that forces operated in Nablus overnight targeting "funds that serve terrorism and the terrorist infrastructure."

The courts must now determine whether the money can be used as evidence. Otherwise it will be returned to the business owners.

Alongside the IDF, representatives from the Shin Bet security service also participated in the operation, as well as members of Israel Police and the Civil Administration.

A police officer was present at every financial institution to ensure the money's safe transfer into the hands of the state.

Mohammed Assar, a money changer in the West Bank town of Jenin, said troops made off with $254,000 and destroyed his business.

"They took me from my house and forced me to open the door and took everything I have: money, checks, dollars, shekels," Assar said. "They didn't leave me anything except for the rubble."

Hussein Yunis, another money changer in Jenin, said his son was pulled out of the house in the middle of the night and dragged to their place of business.

"They took my son and took everything inside," Yunis said, adding that it was still not clear how much money was missing.

In 2004, IDF troops raided two banks in the West Bank city of Ramallah, confiscating $9 million believed to have belonged to Hamas, Islamic Jihad and other militant groups.