On February 1, 2024, FinCEN issued an alert related to the financing of Israeli extremist settler violence against Palestinians in the West Bank. The alert provides select red flags to assist U.S. financial institutions in identifying and reporting suspicious activity that finances such violence.
FinCEN has identified the following red flag indicators to help detect, prevent, and report potential suspicious activity related to the financing of Israeli extremist settler violence against Palestinians in the West Bank:
Payments to any organizations or groups, including nonprofit organizations (NPO),5 that are now or have been previously linked to violent extremist groups in the West Bank or lists an officer, founder, or director that is currently or has been previously linked to Israeli violent extremist groups in the West Bank.
Information included in a transaction between customers, such as references in the memo field, that indicate support for Israeli violent extremist groups or campaigns.
Transactions with no apparent economic, business, or lawful purpose associated with a rapid movement of funds and linked to NPOs active in supporting violent extremist Israeli settlers in the West Bank, particularly if the NPO has advocated for, or solicited donations on social media in support of, Israeli violent extremist groups or campaigns.
Purchases of tactical military gear for resale overseas and destined for non-government Israeli end-users in the West Bank, particularly if the end-users are currently or have been previously linked to Israeli violent extremist groups in the West Bank.
In addition, the OFAC highlighted for members of the public that the President issued an Executive Order (E.O.) that authorizes the U.S. government to impose sanctions on foreign persons that are responsible for or complicit in, or have directly or indirectly engaged or attempted to engage in (1) actions that threaten the peace, security, or stability of the West Bank; or (2) planning, ordering, otherwise directing, or participating in specified actions affecting the West Bank, such as violence targeting civilians and property destruction.
Read FinCEN’s press release here.
The alert can be found here.
