The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an alert to financial institutions across the country, urging them to enhance efforts in identifying and reporting suspicious activity linked to Hizballah. This alert comes as part of a broader campaign by the Treasury Department to combat terrorist financing and protect the U.S. financial system from being exploited by terror groups.

The alert builds on the advisory issued in May 2024, which focused on the financial activities of Iran-backed terrorist organizations. It offers a detailed overview of Hizballah’s global criminal networks and outlines key indicators of suspicious activity that may signal financial support to Hizballah. These activities range from oil smuggling and black market currency exchanges to sophisticated money laundering schemes and illegal arms procurement. The goal is clear: to aid financial institutions in identifying, halting, and reporting illicit activities linked to Hizballah’s operations.

“Hizballah’s role in the ongoing conflict in the Middle East has exacerbated the risk of a wider regional war, and its strikes on Israeli territory have displaced thousands and killed innocent civilians,” said FinCEN Director Andrea Gacki. “As part of the Treasury Department’s enduring campaign against Hizballah’s finances, and in response to Hizballah’s attacks against Israel, we are issuing this alert to help financial institutions uncover Hizballah’s illicit activities and protect the U.S. financial system from abuse by terrorists.”

AML Whistleblowers play a critical part in detecting hidden channels of terrorist financing and shining a light on corrupt practices. In cases involving complex financial crimes, insiders with knowledge of non-compliance or willful participation in suspicious activities are often the first line of defense against the exploitation of financial institutions by terrorists. Reports from whistleblowers are vital in combating terrorist financing as they provide authorities with direct insights into hidden operations, enabling a quicker and more effective response.

Whistleblowers who report potential violations to FinCEN and other authorities are protected by various federal laws, including the Anti-Money Laundering Act of 2020. Under this Act, whistleblowers can receive substantial financial rewards for providing information that leads to successful enforcement actions. The alert from FinCEN serves as a reminder of the ongoing national security risk posed by Hizballah’s financial activities and the critical need for financial institutions and their employees to be proactive.

If you would like to learn more about whistleblower reward programs or more about what it means to be a whistleblower under the various government programs, please do not hesitate to contact us. You can speak with an experienced member of our whistleblower team for a free and confidential consult.

Read New FinCEN Alert on Hizballah: A Call for Financial Institutions and Whistleblowers at constantinecannon.com