• Tue. Apr 23rd, 2024

FinCEN Issues Warning About New Cryptocurrency-Financed Terrorism

Phillip Seefeldt

ByPhillip Seefeldt

Oct 27, 2023

The purpose of the respective alert is to detect malicious activity dealing with the funding of terrorist organizations, particularly highlighting Hamas. The respective militant group had been engaged in an attack on Israel that took place on the 7th of October this year.

FinCEN’s New Alert Cautions about Terrorism Funded by Crypto

As per the new notice, FinCEN pointed out that Hamas has been carrying out “fundraising campaigns associated with digital currency. Apart from that, it also focuses on the fictitious charity forums collecting both virtual and fiat currency to fund its operations. While responding to this negative development, FinCEN cautioned the companies providing the services related to the virtual assets.

Moreover, it also persuaded the rest of the financial entities to be more careful. As per FinCEN, the firms should report suspicious transfers that may be connected to Hamas. The above-mentioned alert pointed out many red flags to provide caution to financial firms. This takes into account the consumers who have carried out transfers with businesses situated in jurisdictions linked with Hamas.

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US Policymakers Focus on Cryptocurrency Following New Development

This also includes the enterprises that currently fill the list of the Office of Foreign Assets Control’s Specially Designated Nationals. Ultimately, the other watched parties take into account those who ask for crypto donations via channels on social media. This caution emerged just following FinCEN’s proposed designation of the crypto-mixing facilities as a primary zone dealing with money laundering.

In the meantime, US Senators Roger Marshall, Elizabeth Warren, as well as Representative Sean Casten stressed their endeavors. They have been focusing on confronting terrorism financed by cryptocurrency. This comes after the reports regarding Hamas’ alleged usage of cryptocurrency to collect funds. More than one hundred policymakers have sent a letter to senior officials in the Biden administration.

They have demanded an explanation of the strategy focused on addressing the utilization of crypto in financing terrorism. As per the allegations in a report from the Wall Street Journal, Palestinian Islamic Jihad and Hamas got huge funds. The report asserted that these organizations obtained nearly $134M in crypto since the year 2021.

Lawmakers Push Authorities to Mitigate Hazards Concerning Illegitimate Crypto Activities

Policymakers persuaded the administration to move toward resilient measures to minimize the hazards linked to illegal crypto-focused operations. In reaction to such apprehensions, the United States Department of the Treasury-based Office of Foreign Assets Control implemented sanctions on Hamas operatives.

Initially, Hamas ventured into the crypto world by fundraising in 2019’s February to circumvent international sanctions. The authorities in Israel partnered with Binance (the worldwide crypto exchange platform) to halt some accounts. The respective accounts were reportedly associated with Hamas. Above one hundred accounts have been supposedly shut down since the attack of Hamas.

Phillip Seefeldt

Phillip Seefeldt

Phillip Seefeldt is a skilled and perceptive news writer known for his comprehensive analysis and engaging writing style. With a commitment to accuracy and a deep understanding of current affairs, his articles provide readers with insightful perspectives and thought-provoking insights.

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