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FinCEN Issues Alert on Crypto Transactions Linked to Hamas

FinCEN issues an alert to financial institutions, cautioning them about suspicious transactions tied to Hamas and urging vigilance regarding crypto-related activities of potential terrorist organizations.

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

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.