Preventing Terrorist Financing in Iran: A Call to Action for Financial Institutions
US Treasury Issues Advisory to Combat Growing Threat of Terrorist Financing in the Middle East
In an effort to combat the increasing threat of terrorist financing in the Middle East, the US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a crucial advisory to help financial institutions detect and prevent illicit transactions linked to Islamic Republic of Iran-backed terrorist organizations.
Identifying Red Flags: A Guide for Financial Institutions
The advisory highlights various methods by which these terrorist groups receive support from Iran, including:
- Iran’s Involvement in Financing Terrorist Activity: The advisory notes that Iran has been increasingly involved in financing terrorist activity in the region, including:
- Proliferation of dangerous weapons
- Malicious cyber activities
- Support for proxy militias
- Typologies Used to Access or Circumvent International Financial Systems: The advisory identifies several typologies used by these groups to access or circumvent the international financial system, including transactions involving:
- Iran-aligned militia groups in Iraq and Syria
US Commitment to Constraining Iran’s Ability to Exploit International Financial System
Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson emphasized the US commitment to constraining Iran’s ability to exploit the international financial system.
Call to Action:
The advisory serves as a warning to financial institutions operating in Iran and globally to be aware of red flags associated with potential terrorist financing activity. It provides detailed information on the types of transactions that may indicate illicit activity, including those involving Iran-aligned militia groups in Iraq and Syria.
Full Advisory Available Online
The full advisory is available online at FIN-2024-A001.
Conclusion:
FinCEN Director Andrea Gacki urges financial institutions to be vigilant in identifying and reporting suspicious activity related to terrorist groups supported by Iran. The advisory is a critical tool for financial institutions operating in Iran and globally, providing them with the necessary information to prevent terrorist financing and support international efforts to combat terrorism.