US Treasury Urges Banks to Report Accounts Suspected of Funding Terrorist Network

Hamas uses smuggled cash and a network of 'complicit money transmitters, exchange houses, and Hizballah-affiliated banks' to move money, FinCEN said

The U.S Treasury Department's Financial Crimes Enforcement Network (FinCEN) issued an alert Friday urging financial institutions to be vigilant in identifying and reporting any suspected funding to Hamas.

The alert was triggered after the Hamas attack against Israel on Oct. 7, which left over 1,000 civilians dead.

"FinCEN is urging financial institutions to be vigilant in identifying suspicious activity relating to financing Hamas and reporting such activity to FinCEN," the network said in its alert.

The terrorist organization is funded through a financing network made up of private donations, a global portfolio of investments, and "fundraising campaigns involving virtual currency and fictitious charities raising both fiat and virtual currency,' according to FinCEN. Hamas smuggles cash and uses a network of "complicit money transmitters, exchange houses, and Hizballah-affiliated banks" to move money, FinCEN said. It reminded banks that Hamas and many organizations and individuals associated with the group are subject to "extensive" U.S. sanctions.

FinCEN has identified several red flags for detecting suspicious activity involving Hamas including transactions that involve the Office of Foreign Assets Control (OFAC) — designated entities and money service businesses that operate in high-risk areas tied to Hamas and are suspected of having poor customer due diligence.

FinCEN also recommended institutions keep an eye out for non-profit organizations that don't appear to offer charitable services and that receive large donations over a short period of time from unknown sources.

Before reporting suspicious activity FinCEN cautioned institutions to "consider the totality of available facts and circumstances."