General Pietro Pistolese, the European Union's chief monitor at the Rafah border crossing, said Thursday that the Palestinian Authority has agreed to put an end to Hamas' smuggling of funds from Egypt into the Gaza Strip.

At a press conference at the EU mission in Ashkelon, Pistolese said that anyone who opposes the agreement would not be allowed to cross through the Rafah crossing.

Diplomats estimate that Hamas, whose government is restricted by U.S. and EU sanctions, has managed to bring about $80 million through Rafah this year. Hamas says the funds are used to keep the government it heads functioning. Israel says they are being used to finance militants.

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According to Pistolese, since the EU mission began monitoring the border last year, no munitions, weapons, or explosives have been allowed through.

Last Thursday, Palestinian Prime Minister Ismail Haniyeh was held up at the Rafah crossing between Egypt and Gaza for more than seven hours. Israel triggered the closure to prevent him from bringing suitcases full of $30 million in cash, which he had raised on a trip to Iran and other Muslim states.

During that incident, the EU monitors left their posts and closed the crossing.

Haniyeh was allowed to enter Gaza Thursday night, following Egyptian intervention, and was forced to leave the funds in an Egyptian bank.

Israeli security sources have said this will guide future policy regarding Hamas members seeking to bring funds into the PA.

Saeb Erekat, a senior aide to Palestinian Authority Chairman Mahmoud Abbas, said Egyptian President Hosni Mubarak had made a commitment to Abbas to stop the money on the Egyptian side of the border. Seized money goes into an Egyptian bank account.

While Hamas may be able to find others not directly affiliated with its movement to bring in cash on its behalf, the new regulations are likely to sharply curtail financing.

For regular travelers entering Gaza through Rafah, sums over NIS 80,000 shekels ($19,000) must be declared.