KUALA LUMPUR – A bipartisan group of four US senators has introduced a bill to expand sanctions, including crypto transactions, to foreign entities supporting all US-designated terrorist groups and their supporting foreign entities.
Led by Utah Republican Senator Mitt Romney, the legislation, which was focused on Hezbollah, will now include Hamas following the October 7 attacks on Israel. However, the bill makes no mention of the retaliatory months-long bombardment of Gaza.
“The October 7 attacks on Israel perpetrated by Hamas have made it more urgent and necessary for the US to counter the role that cryptocurrency plays in the financing of terrorism,” Romney said in a statement.
“Our legislation would expand financial sanctions to cover all terrorist organisations – including Hamas – and it would equip the Treasury Department with additional resources to counter terrorism and address emerging threats involving digital assets.”
Currently, such sanctions are imposed only in limited circumstances, primarily on Hezbollah.
The bill known as Terrorist Financing Prevention was tabled by Romney, Mark R. Warner (D-VA), Mike Rounds (R-SD), and Jack Reed (D-RI).
According to the tabled bill, the US Treasury is required to identify any foreign bank or foreign digital asset transaction facilitator that knowingly facilitates transactions with an FTO (foreign terrorist organisation) or related party.
Once identified, the bill requires imposition of sanctions on them, restricting either their use of US correspondent bank accounts, or barring their digital assets or other transactions with US persons.
However, blockchain cybersecurity firms dispute the supposed increased use of crypto in the funding of terror groups, suggesting such claims have been exaggerated and overstated.
More than 100 accounts thought to be linked to Hamas have been frozen by Binance, the world’s largest crypto exchange, at the request of Israeli law enforcement since October 7.
But by last April, Hamas’ military wing stopped taking crypto donations.
On November 2, the US House of Representatives passed the Hamas International Financing Prevention Act, which requires the US president to periodically report to Congress a list of each foreign person, individual, or entity who knowingly provides “significant support or services” to a senior member or supporter of Hamas or the Palestinian Islamic Jihad.
The president must also report to Congress the governments that have “repeatedly provided material support” for Hamas, and he can bar these governments “from receiving for one year US assistance or exports of controlled munitions”.
The US Treasury Department is also to instruct US leadership of global financial institutions “to oppose providing assistance to an identified government for one year”. The act allows for exemptions if they are in the US’ interests.
The UN has never classified Hamas as a terrorist entity. – December 9, 2023