- The increased scrutiny by FinCEN on cryptocurrency transactions, particularly those involving potential ties to terrorist organizations like Hamas.
- With the reported $165 million cryptocurrency transaction linked to Hamas under investigation, FinCEN is intensifying its efforts to prevent financial crimes such as terrorism financing and money laundering.
According to the Wall Street Journal, the US Financial Crimes Enforcement Network (FinCEN) is looking into the $165 million cryptocurrency transaction that was connected to Hamas.
In order to prevent financial crimes such as financing of terrorism and money laundering both domestically and internationally, FinCEN monitors financial transactions.
FinCEN has looked into allegations of suspicious transaction activity from January 2020 to October 2023, according to a report submitted to Congress. The money might have been used to support transactions involving Hamas, a violent organization.
Furthermore, FinCEN indicated that the $165 million in cryptocurrency transactions reported by financial institutions connected to Hamas may have been overstated in a letter signed by Deputy Treasury Secretary Adewale Adeyemo.
The letter stated that just a fraction of the reported activity may have been related to digital assets, and that “[the figures] may have attributed the full value of a customer’s transactions – including both fiat and digital assets activity – to Hamas.”
The precise quantity of cryptos utilized by Hamas was not specified in the report.
In the letter, US senators were urged to support the passage of a bill that would increase the Treasury’s jurisdiction over cryptocurrency transactions.
As previously revealed, between August 2021 and June 2023, the terrorist organization Palestinian Islamic Jihad (PIJ) earned up to $93 million in cryptocurrencies. BitOK says that during the same period, Hamas was given about $41 million in cryptocurrency.
Examining Crypto-Funded Terrorism
A Congressional letter from October 2023 questioned the efficacy of the existing policies aimed at discouraging the use of cryptocurrency in financing terrorism. Important senators and representatives from the House of Representatives expressly brought up Hamas’s request for Bitcoin donations.
The senators wrote, “We ask the Administration to provide additional details on its plan to prevent the use of crypto for the financing of terrorism, given the clear and present danger posed by the financing of these and other militant organizations.”
But in spite of the letter’s frantic tone, steps to control the use of cryptocurrency in financing terrorism are being taken in a measured manner. Senator Warren has made a strong case against the application of cryptocurrency to stop money laundering.
Warren and Senator Roger Marshall co-sponsored the Digital Asset Anti-Money Laundering Act of 2023, which calls for FinCEN to give financial institutions stringent standards when handling transactions that raise red flags.
Nevertheless, the bill has not received much support from legislators.
Understanding FinCEN: Combating Financial Crimes on a Global Scale
The Financial Crimes Enforcement Network (FinCEN) is a vital government bureau operating under the U.S. Department of the Treasury. Its primary objective is to combat financial crimes, particularly money laundering, by coordinating efforts domestically and internationally. FinCEN oversees a network comprising law enforcement agencies, regulatory bodies, and financial services entities. Through the examination of mandatory disclosures from financial institutions,
FinCEN meticulously tracks suspicious individuals, their assets, and activities to prevent illicit financial activities. As a member of the Egmont Group, an international consortium of over 100 financial intelligence units, FinCEN collaborates globally to exchange information and foster cooperation in combating financial crimes on a broader scale.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
