Reported by Ebrima Santos Sanneh

Treasury’s Financial Crimes Enforcement Network urged financial institutions Friday to vigilantly monitor and report activity suspected of being related to financing the militant organization currently at war with Israel known as Hamas.

Fincen’s alert identified several red flags it says banks should watch which could indicate suspicious activity. These include watching for customers that conduct transactions with entities designated by the Office of Foreign Assets Control or transactions linked to designated groups’ or individuals’ contact information or virtual currency addresses. Fincen also told banks to be wary of customers that interact with higher-risk financial institutions in high-risk jurisdictions with inadequate anti-money-laundering practices and customers that do business with shell corporations or entities tied to Iran-backed militant groups, including Lebanon-based Hezbollah and Palestinian Islamic Jihad. 

Fincen also advised firms to be on the lookout for questionable conduct by charitable or nonprofit organizations that solicit donations without providing services or overtly support Hamas, large and sudden donations from unknown sources followed by substantial transfers and transactions involving “virtual currency addresses associated with terrorism or terrorist financing campaigns.”

Read full report: https://www.americanbanker.com/news/treasury-enlists-banks-to-root-out-hamas-financing