Hamas Funds Palestinian Islamic Jihad Through Jenin Commander

A recent investigation has uncovered a sophisticated financing network used by Hamas to fund Palestinian Islamic Jihad’s operations in Israeli jails and the families of slain militants.

Hybrid Threat Finance Tactics

According to sources, Hamas transferred funds from its own accounts to the commander of Palestinian Islamic Jihad based in Jenin, who then distributed the money to prisoners detained in Israeli jails and the families of slain militants. This modus operandi is a textbook example of hybrid threat finance tactics that terrorist organizations will use repeatedly.

Case Study for Fincrime Compliance Professionals

As such, it serves as a crucial case study for fincrime compliance professionals, sanctions analysts, and terror investigators seeking to update their transaction monitoring systems.

Terror Finance Red Flags

In an effort to help AML analysts uncover potential links between companies, individuals, or accounts and terrorist groups, the following red flags were identified:

• Vehicle purchases inconsistent with customer activity or business
• Multiple personal and business accounts for unclear purposes
• Foreign exchange transactions followed by funds transfers to high-risk locations
• International transfers from or to higher-risk locations
• Insurance policy loans or surrender values subject to substantial charges
• Use of front companies, charities, and non-profits

Regional Risks Rising

Hamas has established a global network of connections through:

• Front companies
• Finance chiefs
• Laundering syndicates
• Funding portals
• Receiving funds from actual and fake charities
• Crypto donations

The organization’s reach extends to countries including:

• Iran
• Qatar
• Turkey
• Lebanon
• Gaza Strip and West Bank
• Syria
• Sudan
• Kuwait

Key Takeaways

1. Hamas uses a hybrid approach to fund its operations, including the transfer of funds from one group to another.
2. Fincrime compliance teams must be aware of regional risks and AML, sanctions, and terror finance risks associated with dual-use goods such as:
   • GPS satellites
   • Missiles
   • Nuclear technology
   • Chemical and biological tools
   • Night vision technology
   • Drones
   • Aluminum pipes
   • Ball bearings
3. Understanding the terminology used by Islamist groups, including terms like:
   • “Fay”
   • “Ghanimah”
   • “Hijrah/Muhajir”
   • “Takfir”
   • “Tamkin”
   • “Nahda”
   • “Mihna”

Conclusion

By studying this case study and recognizing the red flags associated with terror finance, fincrime compliance professionals can better uncover potential links between companies, individuals, or accounts and terrorist groups, ultimately helping to disrupt their operations.