An agency at the U.S. Department of the Treasury says financial institutions need to take an active role in countering potential funding streams for Hamas.
The Financial Crimes Enforcement Network (FinCEN), which polices money laundering and terrorism financing, notes in a new that Hamas’ deadly attack on Israel earlier this month was funded by an illicit financial network that includes both fiat and crypto payment streams.
“Hamas raises funds to support its operations and members in a variety of ways, including through: support from Iran; private donations; a global portfolio of investments; diverting aid and support from legitimate charities; the control of border crossings and avenues of commerce; racketeering business frameworks; extortionary practices around local populations; and fundraising campaigns involving virtual currency and fictitious charities raising both fiat and virtual currency.”
The Treasury Department is calling on financial institutions to report any suspicious transactions potentially associated with the Palestinian Islamist group and to look out for red flags to avoid inadvertently financing terrorist activity.
Israeli law enforcement agencies recently ordered the closures of more than 100 BINANCE accounts and seized millions worth of crypto in an effort to cut funding to Hamas, according to a from the Financial Times, which cited “people directly familiar with Israel’s enforcement actions.”
The Islamist group has previously asked its supporters to send Bitcoin () in an effort to evade US sanctions.
