The US Financial Crimes Enforcement Network issued an alert asking financial institutions to identify and report potential Iranian regime abuse of religious charity networks, including the diversion of khums, or religious tithes. The alert supports Operation Economic Outcast and focuses on schemes that use charities, nonprofit organizations, hawalas and cash couriers to move funds to Iran or Iran-linked actors. Red flags include charities that solicit donations without providing apparent services or openly support the Iranian regime or its terrorist proxies. Other indicators include large donations from unknown sources followed by significant transfers to other nonprofits, efforts to evade reporting or recordkeeping requirements, and transfers to customers with no clear relationship to the charity followed by cash withdrawals or onward remittances. Institutions should assess the totality of the circumstances rather than treat any single indicator as determinative and should include the key term “FIN-2026-IRANCHARITYABUSE” in related Suspicious Activity Reports. FinCEN also reminded banks to apply a risk-based approach to customer due diligence for charities and nonprofit customers, recognizing that legitimate organizations should retain access to transparent financial channels. Institutions are encouraged to notify the Office of Foreign Assets Control when they identify potential sanctions violations while filing Suspicious Activity Reports as appropriate.
US Financial Crimes Enforcement Network issues alert on Iranian abuse of religious charity networks
The US Financial Crimes Enforcement Network issued an alert asking financial institutions to report potential Iranian abuse of religious charity networks, including the diversion of khums. The alert identifies red flags involving opaque donations, rapid onward transfers, cash withdrawals and reporting evasion, while directing institutions to assess the full context and use the specified key term in related Suspicious Activity Reports.