Why are members of the hamas government in Palestine having to smuggle money in to Palestine?

Many countries have cut funding for the hamas run Palestine government, Additionally members of the hamas government have been caught smuggling money from outside Palestine into the country

Why can they not legally bring in (or be sent) money via secure truck or electronic transfer?
(a) is it technically illegal for any government to give money to the hamas government?
(b) is Palestine so reliant on foreign aid that it has no hope to support itself without foreign aid?

Thank-you for your time and effort reading this question, I would be interested in urls and other resources for more factual information about this situation
Please do backup your answers with facts if possible :)

Israel does not want freedom funded.

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Hamas is boycotted by Israel who controls the frontiers, and also by the US and EU states who have cut their funding, because most of Palestinian money came from the US and the EU. And US and EU banks, in case they know who they are dealing with, would not transfer any money to Hamas members.

The Palestinians are completely dependant on charity and foreign aid. (As is Israel, to a lesser extent, btw.)

They have no industry or bussinesses for the government to tax, because the people are locked down in their villages by the Israelis and bussinesses will open up in more stable regions rather than risk work stoppages.

All sales tax and tarrifs at the ports are collected by Israel and supposed to be returned to them. THe only employed sector of the Palestinian population are those in East Jerusalem who have enough freedom of movement to work. They pay Israeli taxes, but Israel is supposed to return the taxes to the Palestinian government.

When Hamas was elected, Israel stopped returning the taxes they are supposed to, and the rest of the world stopped giving the foreign aid they used t; they feared it would be used to fund terrorism.

The irony is that Hamas was elected because the Palestinians felt Fatah officials had become corrupt and were funneling the money into their own pockets rather than helping the people with it. Hamas had won local elections before, and had demonstrated that they were pretty much incorruptable; even punishing with public beatings anyone found to have stolen money from the public. They have also demonstrated a pinache for suicide bombings and other scary activities. They also have good schools that serve food to the kids who might otherwise not get it. Mixed bag.

Hamas's terrorist/resistence activities scared the world into worrying that they would use the money to fight Israel, so the Europeans and Americans don't give money.

The Arab countries still do, but Israel won't allow it to cross the border, and ISrael controls the borders on all sides. This neccessitates smugling, because wire transfers are impossible. AMerican and EU banks would sieze and hold the funds, and Arab banks don't have branches in Israel or the areas it occupies, including the West Bank and Gaza.