Global Financial Institutions Targeted in Hamas Money Transfer Scheme
A recent investigation has uncovered a widespread money transfer scheme involving several countries and financial institutions, with ties to the terrorist organization Hamas.
Investigation Reveals Widespread Network
The investigation, led by the US Treasury Department’s Office of Foreign Assets Control (OFAC), has identified a network of companies and individuals operating in Algeria, Lebanon, Saudi Arabia, Sudan, Turkey, and the United Arab Emirates that have been transferring funds directly to Hamas. The network is believed to be worth an estimated $500 million, with transactions totaling over $165 million between January 2020 and October 2023.
Scheme Involves Virtual Currencies and Crowdfunding
The scheme involves the use of virtual currencies, such as Bitcoin, which have been used by Hamas to raise funds under the guise of humanitarian or charitable causes. Crowdfunding platforms and social media campaigns have also been exploited to solicit donations for Hamas.
Iran’s Financial Support to Hamas
Iran has been providing significant financial support to Hamas since 2018, with estimates suggesting that it has provided up to $100 million per year in funding. The Iranian government has used its diplomatic relationships with various countries to facilitate these transactions, often through the use of shell companies and front organizations.
US Treasury Department Takes Action
The US Treasury Department has taken action against several individuals and entities connected to this network, including designating Hamas operatives and financial facilitators as specially designated global terrorists. The department has also issued guidance for the provision of humanitarian assistance to the people of Gaza, while ensuring that legitimate aid can continue to flow to the region.
Warning Issued by FinCEN
A warning has been issued by FinCEN to financial institutions globally, advising them to be cautious of suspect activity related to Hamas. The advisory highlights the use of shell companies, virtual currencies, and crowdfunding platforms as common tactics used by Hamas to launder funds and evade detection.
Financial Institutions Warned of Suspect Activity
Financial institutions are urged to report any suspicious transactions or activity related to Hamas or its affiliates to FinCEN or other relevant authorities.
US Treasury Department Takes Action
The US Treasury Department has taken several actions against individuals and entities connected to the Hamas money transfer scheme, including:
- Designating Hamas operatives and financial facilitators as specially designated global terrorists
- Issuing guidance for the provision of humanitarian assistance to the people of Gaza, while ensuring that legitimate aid can continue to flow to the region
- Targeting additional sources of support and financing for Hamas
The US Treasury Department has also issued a statement urging countries around the world to take action against terrorist organizations like Hamas and to deny them access to funds.
“We will not tolerate the use of our financial system to support terrorism,” said a US Treasury Department official. “We urge all countries to join us in this effort and to take similar actions to disrupt and dismantle these networks.”