FINCEN Regulations Explained: Financing of Extremist Settler Violence Against Palestinians Under Scrutiny
Background
The Financial Crimes Enforcement Network (FinCEN) has issued an alert to financial institutions aimed at curbing the financing of Israeli extremist settler violence against Palestinians in the West Bank. This move is part of the US government’s efforts to promote peace, security, and stability in the region.
Red Flags Identified by FinCEN
The alert highlights several red flag indicators that may suggest involvement in violent extremist activities:
- Payments to organizations or groups linked to violent extremist groups: Financial institutions should be cautious of payments made to organizations or groups associated with violent extremist groups in the West Bank.
- Information included in transactions indicating support for Israeli violent extremist groups: Transactions containing information that suggests support for Israeli violent extremist groups should raise suspicions.
- Rapid movements of funds associated with non-profit organizations active in supporting violent extremist Israeli settlers: Financial institutions should be wary of rapid fund transfers linked to non-profit organizations that support violent extremist Israeli settlers.
Additional Red Flags
The alert also highlights the following red flags:
- Purchases of tactical military gear destined for non-government Israeli end-users in the West Bank: Transactions involving the purchase of tactical military gear for individuals linked to violent extremist groups should be reported.
- Transactions with individuals or entities associated with violent extremist groups: Financial institutions should report transactions made by individuals or entities associated with violent extremist groups.
Action Required
FinCEN is requesting that financial institutions:
- Reference this alert when filing Suspicious Activity Reports (SARs): Financial institutions should reference the key term “FIN-2024-WBEXTREMISM” in SAR field 2 when reporting suspicious activities.
- Apply a risk-based approach to Customer Due Diligence requirements for charities and non-profit organizations: Financial institutions should apply a risk-based approach to Customer Due Diligence requirements for charities and non-profit organizations.
Mission of FinCEN
The mission of FinCEN is to:
- Safeguard the financial system from illicit use: FinCEN works to prevent the misuse of the financial system by criminals and terrorist organizations.
- Combat money laundering and its related crimes, including terrorism: FinCEN aims to disrupt and dismantle money laundering schemes and their related criminal activities, including terrorism financing.
- Promote national security through the strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence: FinCEN uses its authorities and intelligence gathering capabilities to promote national security and prevent threats to the United States.