FinCEN issues an alert regarding crypto transactions linked to Hamas
The U.S. Treasury Department's Financial Crimes Enforcement Network, or FINCN, issued a warning to financial institutions as part of an effort to identify “suspicious activity” related to the financing of terrorist groups.
In an Oct. 20 announcement, FinCN said that Hamas — the militant group behind the Oct. 7 attacks on Israel — has employed “virtual currency and virtual currency-raising fundraising campaigns and fictitious charities” to support its activities. The State Department has warned virtual asset service providers and other institutions to identify and report suspicious transactions that may be linked to Hamas.
In particular, FinCEN urged financial institutions to be wary of clients who have done transactions with businesses linked to Hamas, entities already on the Office of Foreign Assets Control's Specially Designated Nationals list, and those soliciting crypto donations on social media. The announcement comes less than 24 hours after the State Department proposed reclassifying crypto-mingling in the area of ”major money laundering” related to terrorism.
Today, Treasury's Financial Crimes Enforcement Network announced proposed legislation to increase transparency around the global exchange of virtual currency to combat malicious actors including Hamas, Palestinian Islamic Jihad, and the DPRK. https://t.co/1atRjZnjwo
— Treasury Department (@USTreasury) October 19, 2023
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FinCEN's alert followed concerns about crypto raised by US lawmakers in the wake of Hamas attacks on Israel. On October 17, more than 100 members of Congress called on US President Joe Biden's administration to “take swift and transparent action to meaningfully curb illegal crypto activity.” US Treasury officials also added a Gaza-based crypto operator allegedly linked to Hamas to the list of sanctioned entities.
In the year In March 2022, FinCEN issued a similar warning to financial institutions over attempts by Russian entities to evade sanctions by using crypto. The announcement came days after Russian troops invaded Ukraine in February 2022.
Magazine: US law enforcement agencies are turning up the heat on crypto-related crimes.
