A U.S. Treasury Department agency says financial institutions must play an active role in countering potential flows of financing for Hamas.
The Financial Crimes Enforcement Network (FinCEN), which monitors money laundering and terrorist financing, notes in a new alert that Hamas’ deadly attack on Israel earlier this month was financed by an illicit financial network that includes both fiat and crypto payment flows.
“Hamas raises money to support its operations and members in a variety of ways, including: support from Iran; private donations; a global investment portfolio; diverting aid and support from legitimate charities; the control of border crossings and trade routes; business frameworks for extortion; extortion practices surrounding the local population; and fundraising campaigns involving virtual currencies and fictitious charities that raise both fiat and virtual currencies.”
The Ministry of Finance calls on financial institutions to report all suspicious transactions that may be related to the Palestinian Islamic group and to watch for red flags to prevent unintentional financing of terrorist activities.
Israeli law enforcement agencies recently ordered the closure of more than 100 Binance accounts and seized millions in crypto in an effort to cut funding to Hamas, according to a report. report from the Financial Times, which “quoted people directly familiar with Israel’s enforcement actions.”
The Islamic group has previously asked its followers to send Bitcoin (BTC) in an attempt to circumvent US sanctions.
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