Financial Crime World

Global Efforts to Disrupt Hamas’ Financial Networks

Disrupting Hamas’ Financial Networks: A Global Effort

A recent advisory issued by the Financial Crimes Enforcement Network (FinCEN) highlights the global efforts to disrupt the financial networks of the Palestinian militant group Hamas. The advisory reveals that Hamas has been using various methods to raise funds, including “sham” charities, crowdfunding campaigns on social media, and convertible virtual currency transactions.

Methods Used by Hamas to Raise Funds

  • Sham Charities: Hamas has used “sham” charities to raise funds for its activities.
  • Crowdfunding Campaigns: The group has also leveraged crowdfunding campaigns on social media platforms to collect donations.
  • Convertible Virtual Currency Transactions: Hamas has used convertible virtual currency transactions, including Bitcoin donations.

International Efforts to Disrupt Hamas’ Financial Networks

Several countries and organizations have taken action against Hamas’ financial networks. These efforts include:

Sanctions Imposed by the United States Treasury Department

  • Sanctions on Financial Intermediaries: The US Treasury Department has imposed sanctions on numerous financial intermediaries between Iran and Hamas.
  • Sanctions on Individuals and Entities: The department has also sanctioned individuals and entities connected to Hamas’ terrorist activities.

Action Taken by Other Countries

  • Kingdom of Saudi Arabia: The Kingdom of Saudi Arabia has banned fundraising campaigns for Hamas.
  • Republic of Sudan: The Republic of Sudan has designated Hamas as a terrorist organization.
  • United Arab Emirates (UAE): The UAE has imposed sanctions on individuals and entities linked to Hamas.

Support from Other Countries

Several countries have also issued statements condemning Hamas’ terrorist activities and expressing support for efforts to combat terrorism. These countries include:

People’s Democratic Republic of Algeria (Algeria) and the Republic of Tunisia

  • Condemnation of Hamas’ Terrorist Activities: Both Algeria and Tunisia have condemned Hamas’ terrorist activities.
  • Support for Efforts to Combat Terrorism: They have also expressed support for efforts to combat terrorism.

European Union

The European Union has designated Hamas as a terrorist organization.

FinCEN Analysis of Bank Secrecy Act Information

FinCEN analysis of Bank Secrecy Act information suggests that between January 2020 and October 2023, financial institutions reported approximately $165 million in suspicious activity filings related to Hamas and convertible virtual currency transactions involving over 200 unique addresses.

Response from Hamas

In response to law enforcement action targeting its use of convertible virtual currency, Hamas has reportedly announced that it will no longer accept Bitcoin donations. However, there is evidence that the group continues to use other methods to raise funds and evade financial sanctions.

Importance of International Cooperation

The advisory emphasizes the importance of continued international cooperation and information sharing in combating terrorism and disrupting the financial networks of groups like Hamas.