an alert on 20 October, aimed at several financial institutions. The goal being to identify “suspicious activity” related to funding terrorist groups. The alert specifically highlighted the militant group Hamas, which was responsible for an attack on Israel on 7 October.
According to the notice, Hamas has been undertaking “fundraising campaigns involving virtual currency and fictitious charities raising both fiat and virtual currency” to finance its activities. In response to this, FinCEN urged virtual asset service providers and other financial institutions to be vigilant. FinCEN has urged them to recognize and report any suspicious transactions that may have links to Hamas.
The alert specified several red flags for financial institutions to be cautious of. This includes clients who have engaged in transactions with businesses located in jurisdictions associated with Hamas, and entities that are already on the Office of Foreign Assets Control’s list of Specially Designated Nationals. Finally, those that solicit cryptocurrency donations through social media channels are also being watched.their efforts to combat “crypto-financed terrorism.
The lawmakers urged the administration to take robust action to mitigate the risks associated with illicit crypto-activities. In response to these concerns, the U.S Department of the Treasury’s Office of Foreign Assets Control to freeze accounts allegedly linked to Hamas. More than 100 accounts on Binance have been reportedly closed since Hamas’s attack.
It’s worth noting this is not the first time FinCEN has issued such a warning. Back in March 2022, ir issued a similar alert to financial institutions concerning Russian entities attempting to evade sanctions using cryptocurrencies during the invasion of Ukraine.Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times.