Financial Crime World

Donations to Gaza Strip Terror Groups Funneled Through Bank Accounts Abroad

A recent investigation has uncovered a sophisticated network of money laundering and fundraising schemes used by terrorist groups operating in the Gaza Strip to access funds from around the world.

How it Works

  • Donations are often placed in bank accounts in third countries, including Lebanon, Qatar, and Turkey.
  • These accounts are then accessed by individuals operating in the Gaza Strip, allowing them to bypass international sanctions and financial restrictions.

Hamas’s Fundraising Methods

Hamas, a designated terrorist organization, has been using convertible virtual currency (CVC) for fundraising purposes. The group leverages money exchangers who have incorporated CVC into their operations to facilitate cross-border transfers.

  • Since at least 2019, Hamas has sought contributions in donation drives.
  • Some campaigns solicit donations in dollars, euros, and cryptocurrency, often disguising the true purpose of the donations under the guise of humanitarian aid, misleading donors about how their funds will be used.

Safeguarding Anonymity

Hamas has historically leveraged virtual asset service providers (VASPs) to safeguard the anonymity of its donors. However, there is evidence that the group has adapted to law enforcement action targeting its use of CVC, with some instances of warnings being issued to potential donors.

International Efforts

The findings are part of a broader effort by international authorities to disrupt and prevent terrorist financing networks.

  • The US Department of State has designated Hamas as a terrorist organization and has imposed sanctions on individuals and entities connected to the group.
  • The US Treasury Department has targeted nearly 1,000 individuals and entities connected to terrorism and terrorist financing, including Iran-backed groups in the region.
  • The department remains committed to denying Hamas access to funds while ensuring legitimate humanitarian aid can continue to flow to the Palestinian people in Gaza.

Conclusion

The investigation highlights the need for continued vigilance in combating terrorist financing networks and the importance of international cooperation to disrupt these schemes and protect global financial systems.