US Treasury Department’s FinCEN Warns of Suspicious Activities
In an alert issued on October 20, the Financial Crimes Enforcement Network (FinCEN) of the United States Treasury Department has issued a warning to financial institutions, urging them to identify and report any suspicious activities related to the funding of terrorist groups, particularly with regards to Hamas. This action comes following Hamas’ involvement in the October 7 attack on Israel.
Hamas’ Use of Cryptocurrencies for Fundraising
The alert outlines concerns about Hamas employing “fundraising campaigns involving virtual currency and fictitious charities raising both fiat and virtual currency” to support its activities. The use of cryptocurrencies for illicit fundraising and activities has raised red flags in the financial sector.
Concerns Raised by US Lawmakers
Today, Treasury’s Financial Crimes Enforcement Network announced a proposed rule to increase transparency around international Convertible Virtual Currency Mixing to combat its use by malicious actors including Hamas, Palestinian Islamic Jihad, & the DPRK. https://t.co/1atRjZnjwo
— Treasury Department (@USTreasury) October 19, 2023
FinCEN’s alert echoes concerns expressed by US lawmakers in the wake of the recent attacks involving Hamas. Over 100 members of Congress have called on the Biden administration to take swift action to curb illicit crypto activities. This includes measures to address concerns related to crypto mixing as a potential means of money laundering and terrorist financing.
