Financial Crime World

Hamas Transfers Millions to Palestinian Islamic Jihad Commander in Jenin

In a shocking revelation, sources have confirmed that Hamas transferred millions of dollars to the commander of the Palestinian Islamic Jihad (PIJ) based in Jenin, West Bank. The funds were allegedly intended to support Palestinian prisoners detained in Israeli jails and the families of slain militants.

Terror Finance Tactics

The transfer highlights the complex web of terror financing networks used by terrorist organizations such as Hamas and PIJ. These tactics are crucial for fincrime compliance, sanctions analysts, and terror investigators to understand, as they will be employed repeatedly in the future.

Red Flags

ACFCS has identified several red flags that can aid fincrime compliance AML analysts at all levels:

  • Vehicle purchases inconsistent with customer activity or business
  • Funds transfers without logical purpose or information on originators or recipients
  • 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
  • Multiple accounts funneling funds to a small number of foreign beneficiaries

Front Companies and Charities

The use of “front companies” and charities, such as Baitul Maal in Pakistan/Afghanistan, also raises concerns. These organizations often operate under the radar, using social media platforms to spread their message.

Operational Security and Open-Source Intelligence (OSINT)

Operational security and OSINT play a crucial role in identifying key words used by Islamist groups, including:

  • “Fay” (spoils of war)
  • “Ghanimah” (migrant)
  • “Takfir” (infidel)

Understanding these terms can help fincrime compliance teams better risk-rate transactions, regions, and products.

Dual-Use Goods

The article also highlights the importance of considering dual-use goods, such as:

  • Global positioning systems satellites
  • Missiles
  • Nuclear technology
  • Chemical/biological tools

These items can be used by civilians and military forces for different purposes, making them a significant concern in the context of terror finance.

Regional Risks

Regional risks are rising, with Hamas having connections to various countries through:

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

The organization has ties to Iran, Qatar, Turkey, Lebanon, Gaza Strip, West Bank, Syria, Sudan, and Kuwait, among others.

Recent Development

In a recent development, the Mobilization for Palestine Campaign in Kuwait has raised over $8 million dollars for Gaza, with organizations such as the Revival of Islamic Heritage Society (RIHS) and NGOs linked to the U.S.-sanctioned Union of Good involved. While Kuwait does not officially recognize Hamas as a terrorist organization, it has taken steps to restrict financial support and fundraising activities within its borders.

Conclusion

As the global fight against terror finance continues, understanding these complex networks and tactics is crucial for effective compliance and law enforcement efforts.