Daily Compliance Brief — OFAC Exposes Hamas Financing Through Sham Charities and Cryptocurrency

October 2, 2026

Signal

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) designated five Hamas-linked individuals and entities on October 2, 2026, targeting a financing network involving sham charities and cryptocurrency. According to the U.S. Treasury press release, the network transferred more than $2 million to Hamas between 2020 and 2026.

The designations include a Gaza-based Hamas military wing member and two France-based individuals operating purported charitable organizations. Treasury stated that the network used cryptocurrency transfers and charitable fundraising structures to channel funds to Hamas.

Why it matters

Financial institutions and payment providers may need to reassess exposure to nonprofit organizations, fundraising accounts, and cryptocurrency wallets connected to newly designated persons.

Existing controls should support enhanced due diligence and transaction monitoring where charitable activity intersects with cross-border transfers, virtual assets, and counterparties linked to designated networks.