Efforts to Disrupt Hamas Financing Face Challenges in Identifying Supportive Charities
An international initiative aimed at disrupting Hamas financing has encountered obstacles in distinguishing between charities supporting the militant group and legitimate nonprofits addressing the humanitarian crisis in Gaza, according to Western officials.
In response to Hamas’s attack on Israel on October 7, the U.S., Israel, and over a dozen allies established a task force on terror financing. They implemented sanctions targeting Hamas financiers, currency exchanges, and corporate networks, while also offering substantial bounties for information on financial facilitators.
Despite these measures, more than four months later, the U.S. has not taken action against numerous nonprofit groups flagged by Israel as Hamas-run, including charities in the U.S. and Europe. These organizations have reportedly directed tens of millions of dollars to Gaza since the onset of the war, as stated by current and former Western officials.
While the U.S. and others have acted against some organizations flagged by Israel, a senior U.S. official mentioned that allies have been requesting credible evidence for an extended period, with no decisive action taken.
This disagreement coincides with U.S. efforts to broker a cease-fire in Gaza amidst escalating Palestinian deaths and a deteriorating humanitarian crisis. Additionally, there is a debate over Israeli allegations linking United Nations Relief and Works Agency (UNRWA) staff to Hamas, resulting in Washington and other Western capitals suspending aid to UNRWA after 12 of its staffers were implicated in the October 7 Hamas assault.
The U.S. intelligence community suggests that some UNRWA workers likely participated in the attack but has not yet substantiated claims tying a large number of agency workers to the militant group.
Concerning the various organizations aiding Gaza, U.S. officials assert their ability to differentiate between authentic and fraudulent charities. However, they remain cautious about overreach that could inadvertently target legitimate humanitarian nonprofits and play into Hamas propaganda.
The senior U.S. official emphasized that when credible evidence of fraudulent charities used by terrorists surfaces, designating them will not be delayed.
Hamas reportedly collects around $100 million annually from its primary benefactor, Iran, along with revenue from a global investment portfolio and donations through nonprofit organizations abroad. Israel’s military operation has significantly affected Hamas’s funding, particularly the roughly $600 million annually collected in taxes in Gaza.
As foreign funding, including from charities, becomes critical for Hamas, Western officials observe online grassroots campaigns associated with designated charities soliciting funds under the guise of humanitarianism, according to Brian Nelson, the U.S. Treasury Department’s undersecretary for terrorism and financial intelligence.
The ongoing debate focuses on identifying which charities are linked to Hamas and which are genuinely involved in humanitarian work in Gaza. Israel’s National Bureau for Counter Terror Financing, responsible for disrupting terror funding, lists numerous fundraising campaigns hosted by LaunchGood, a Michigan-based nonprofit that crowdsources funding for some of the largest Muslim charities worldwide.
LaunchGood has hosted campaigns for organizations that Israel claims are tied to Hamas, including Muslim Aid USA, as well as campaigns for rebuilding Jewish cemeteries and supporting victims of the 2018 Pittsburgh synagogue shooting.
While the U.S. has not taken action against any campaigns or charities on the LaunchGood platform, the organization disputes Israel’s allegations. LaunchGood states it has implemented a rigorous compliance program, addressing heightened scrutiny Islamic groups face in the U.S., requiring charities fundraising for Palestine to pass three separate compliance checks.”
