Terror Finance Red Flags: Uncovering Hamas’s Global Network
Sophisticated Money Transfers Exposed
Investigators have uncovered a complex network of money transfers between Hamas and Palestinian Islamic Jihad, two designated terrorist organizations. The transactions were carried out through a web of front companies and shell accounts, designed to evade detection by financial authorities.
According to sources familiar with the investigation, the transfers were made from Hamas to the commander of Palestinian Islamic Jihad based in Jenin, who then distributed the funds to Palestinian prisoners detained in Israeli jails and the families of slain militants.
The Evolving Nature of Terror Finance
The tactics employed by Hamas and Palestinian Islamic Jihad serve as a stark reminder of the evolving nature of terrorist financing. The use of front companies, shell accounts, and other complex financial structures is a hallmark of modern terror finance, making it essential for financial institutions and law enforcement agencies to stay ahead of these threats.
Red Flags to Identify Potential Terrorist Financing Activity
The Association of Certified Financial Crime Specialists (ACFCS) has identified several red flags that can help identify potential terrorist financing activity:
- Vehicle purchases inconsistent with customer behavior or business activities
- Multiple personal and business accounts used to funnel funds to high-risk locations
- Foreign exchange transactions followed by funds transfers to higher-risk areas
- International transfers from or to locations known for supporting terrorism
Key Terms and Phrases
ACFCS has also identified several key terms and phrases commonly used by Islamist groups, including:
- “Fay” (used by ISIS)
- “Ghanimah” (Spoils of war)
- “Hijrah” (Migrant, foreign fighter)
Global Presence of Hamas
The investigation highlights the importance of understanding the financial activities of designated terrorist organizations. Hamas has a significant presence in several countries, including:
- Iran
- Qatar
- Turkey
- Lebanon
- Gaza Strip and West Bank
- Syria
- Sudan
- Kuwait
For example, the Mobilization for Palestine Campaign in Kuwait has raised over $8 million dollars for Gaza, with some of the funds coming from organizations linked to the U.S.-designated Union of Good. While Kuwait does not officially recognize Hamas as a terrorist organization, it has taken steps to restrict financial support and fundraising activities for the group within its borders.
Global Cooperation Crucial
The investigation serves as a stark reminder of the need for global cooperation in combating terrorism financing. As ACFCS CEO said: “Terror finance is a perpetual threat that requires constant vigilance and innovation from financial institutions, law enforcement agencies, and governments around the world.”
Combating Terrorist Financing
In this ongoing battle against terrorist financing, ACFCS remains committed to providing critical training, resources, and expertise to help combat this growing menace.