Financial Crime World

FinCEN Report Reveals Countries’ Role in Transferring Money to Hamas

Washington D.C. - A recent report by the Financial Crimes Enforcement Network (FinCEN) has shed light on the significant role played by Algeria, Lebanon, Saudi Arabia, Sudan, Türkiye, and the United Arab Emirates in helping to transfer money to Hamas, a Palestinian militant group.

Key Findings

  • According to FinCEN’s analysis of data from the Bank Secrecy Act (BSA), these countries have been used as hubs for money transfers between Iran and Hamas.
  • The report reveals that Iran has provided up to $100 million per year to Hamas since 2018, with Algeria, Lebanon, Saudi Arabia, Sudan, Türkiye, and the UAE serving as key financial intermediaries.

Hamas’ Financial Activities

  • FinCEN’s report highlights that Hamas has used “sham” charities or foreign non-profit organizations (NPOs) that claim to provide humanitarian assistance but instead primarily or exclusively funnel money to terrorist organizations.
  • The group has also exploited crowdfunding and social media platforms to raise funds under the guise of humanitarian or charitable causes worldwide.

Cryptocurrency Involvement

  • FinCEN analysis of BSA information found that between January 2020 and October 2023, financial institutions reported approximately $165 million in suspicious activity filings related to Hamas and cryptocurrency (CVC) involving over 200 unique CVC addresses.
  • Given the tendency for filing institutions to attribute the full value of a customer’s transactions to Hamas, even when only a portion may be related, the reported value is likely an overestimate.

Houthis’ Involvement

  • The FinCEN report also reveals that the Houthis, or Ansarallah, an Iran-backed Zaidi Islamist movement that arose in Northern Yemen in 2004, have been involved in transferring money to Hamas.
  • The Houthis launched a military campaign in 2014 and have since received support from Iran.

US Response

  • In response to these findings, the US Treasury Department has announced its commitment to denying Hamas access to funds following its heinous terrorist attacks against the people of Israel, while also ensuring legitimate humanitarian aid can continue to flow to the Palestinian people in Gaza.
  • The Office of Foreign Assets Control (OFAC) has authorized limited transactions with blocked persons to the extent such dealings are ordinarily incident and necessary to certain humanitarian activity.

Conclusion

  • The findings of this report highlight the need for continued vigilance and cooperation between financial institutions, law enforcement agencies, and governments to combat the financing of terrorism and protect national security.