The Financial Crimes Enforcement Network (FinCEN) has issued an alert (FIN-2024-Alert003) to help financial institutions detect and report financing activities linked to the Iran-backed Lebanese militia and designated Foreign Terrorist Organization (FTO), Hizballah. This guidance builds on FinCEN’s previous advisory on Iran-backed terrorist organizations, reinforcing measures to identify funding sources for Hizballah. Hizballah is part of Iran’s “axis of resistance,” aiming to counter U.S. influence in the Middle East. Following the October 7, 2023, attacks on Israel, Hizballah escalated the conflict with rocket attacks from Lebanon, contributing to intense cross-border hostilities and significant regional displacement and civilian casualties.
The alert highlights red flags that may indicate suspicious activities associated with Hizballah, such as transactions with entities designated by OFAC for their Hizballah connections, use of foreign banks considered “primary money laundering concerns,” transactions with high-risk Money Service Businesses (MSBs), and links to front companies with ambiguous ownership. Specific indicators include unusual trade practices, such as over- or under-charging for exports to high-risk areas, and large, atypical cash deposits or personal fund transfers in business sectors with ties to high-risk regions. FinCEN advises that these red flags be viewed in context, considering the customer’s history and behavior patterns.
Read the alert here: FinCEN Alert Hizballah Alert