Financial Crimes Enforcement Network, US Treasury has issued an important alert for financial institutions aimed at #identifying and #preventing the financing activities of Hizballah, the Iran-backed #terroristorganization. The goal is to help detect the financial flows supporting Hizballah and prevent funds from being used for #terrorism.
Key Points:
1. Hizballah was designated as a Foreign Terrorist Organization (#FTO) in 1997 and as a Specially Designated Global Terrorist (#SDGT) in 2001. In addition to its military and political activities, #Hizballah is deeply involved in illicit global operations to finance its objectives.
2. Global Revenue Generation: Hizballah raises funds through #illicitactivities such as #smugglingoil and #luxurygoods, #moneylaundering, and #armstrafficking. Its networks extend from the Middle East, where it collaborates with other terrorist groups, to Africa and Latin America, exploiting #frontcompanies and #blackmarkets to generate funds.
3. #RedFlag Indicators for spotting suspicious activities linked to Hizballah:
🚩 Transactions with sanctioned entities: Financial movements involving individuals or companies designated by the Office of Foreign Assets Control ("#OFAC") for their ties to Hizballah.
🚩 Operations in high-risk regions: Transactions involving countries such as Lebanon, the Tri-Border Area (Argentina, Brazil, Paraguay), or West Africa, known for #terroristfinancing and money laundering activities.
🚩 Use of #frontcompanies: Businesses with opaque ownership structures or shared addresses with other firms, often used to disguise illegal activities.
🚩 Falsified invoices and documents: Discrepancies in commercial documents, such as inflated or undercharged invoices for goods (e.g., electronics or used cars) shipped to high-risk areas, especially when intermediaries are linked to Hizballah.
4. Suspicious Activity Reports (#SARs): Financial institutions are urged to report any #suspicioustransactions related to Hizballah immediately. FinCEN requests the use of specific codes to help identify and track these activities, enabling faster intervention.
