The Financial Crimes Enforcement Network (FinCEN) has urged financial institutions to actively combat potential funding sources for Hamas, a Palestinian Islamist group. In a recent alert, FinCEN highlighted that the recent deadly attack by Hamas on Israel was financed through an illegal financial network that involved both fiat and cryptocurrency payment channels. The US Treasury Department is urging financial institutions to report any suspicious transactions that could be associated with Hamas and to be vigilant in order to prevent inadvertently financing terrorist activities. Israeli law enforcement agencies have already closed more than 100 Binance accounts and seized millions worth of cryptocurrencies in an attempt to cut off funding to Hamas.
Hamas employs various methods to raise funds, including support from Iran, private donations, a global investment portfolio, diverting aid from legitimate charities, controlling border crossings and commerce routes, racketeering, extortion, and fundraising campaigns involving both fiat and virtual currencies. The group has previously encouraged its supporters to send Bitcoin (BTC) as a way to evade US sanctions. The US Treasury Department’s call for financial institutions to take an active role in countering Hamas’ funding streams aligns with efforts by Israeli law enforcement to dismantle the group’s financial infrastructure.
By reporting suspicious transactions and remaining vigilant, financial institutions can contribute significantly to the disruption of Hamas’ funding activities, ultimately helping to combat terrorism and promote global security.
