United States will block Hamas from raising funds through encrypted assets and other means

US to Prevent Hamas from Raising Funds through Encrypted Assets and Other Channels

Author: Andrea Shalal, Daphne Psaledakis, Source: Reuters; Translation: Song Xue, LianGuai

Wally Adeyemo, Deputy Secretary of the U.S. Treasury, said on Thursday that the United States and its allies will implement more sanctions in the coming days and weeks to refuse funding to Hamas, including targeting its use of cryptocurrencies, following last month’s attacks on Israel by Hamas.

“We will see action from our allies and partners,” Adeyemo said. “Some of these measures will be publicly announced, while others will not be visible, such as the closure of charities or tracking individuals who may help fund Hamas.”

Washington has already imposed two rounds of sanctions on Hamas. It targeted the organization’s investment portfolio and issued warnings to financial institutions about combating Hamas financing, while senior officials discussed the issue of obtaining funds when Hamas members travel abroad.

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In addition, Brian Nelson, the top official in charge of sanctions at the U.S. Treasury Department, on Thursday met with the private sector, including cryptocurrency companies and payment processors, to discuss tactics to counter Hamas fundraising.

The U.S. Treasury Department said in a statement that Nelson, Deputy Assistant Secretary for Terrorist Financing and Financial Crimes, listened to the views of currency service providers, payment processors, and blockchain analysis companies to understand the technologies used by the organization in fundraising and money transfers.

The department said that Nelson “committed to continued engagement with those taking aggressive action to investigate, identify, and disrupt Hamas-related activities.”

Adeyemo said that while cryptocurrencies are not currently a major source of Hamas’s assets, “over time, if the cryptocurrency industry fails to take appropriate safeguards and fulfill anti-money laundering responsibilities, Hamas and other organizations will increasingly turn to cryptocurrencies.”

This is a rule proposed by the Financial Crimes Enforcement Network (FinCEN), managed by the Treasury Department, under Section 311 of the USA PATRIOT Act, designating “mixing” of cryptocurrency transactions as a primary money laundering concern, requiring financial institutions to monitor and report them.

Adeyemo said that such transactions involving merged asset pools or delayed transaction processing can obscure beneficial ownership of cryptocurrencies.

Adeyemo said that efforts to cut off Hamas funding will increasingly focus on mediators in third countries and require coordination with allies and partners to sever these channels. The focus of his recent trip to Europe was to promote more cooperation in this area.

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