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U.S. Treasury Designates Gaza Charities and Diaspora Group Alleging Ties to Hamas

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Key takeaways

  • OFAC designated six Gaza-based organizations—Waed Society Gaza; Al-Nur Society Gaza; Qawafil Society Gaza; Al-Falah Society Gaza; Merciful Hands Gaza; and Al-Salameh Society Gaza—alleging they are organized by or integrated into Hamas’s military wing.
  • OFAC designated the Popular Conference for Palestinians Abroad (PCPA) as a Hamas front and added U.K.-based Zaher Khaled Hassan Birawi, a senior PCPA official, to the designations.
  • Treasury said documentary evidence taken from Hamas offices after October 7, 2023, shows these groups diverted funds and provided material support to the Izz al-Din al-Qassam Brigades.
  • Treasury cited specific financial activity, saying Al-Falah transferred over $2.5 million to Hamas over a recent three-year period and that Hamas provided direct funding and operational instructions to some organizations.
  • Designations were made under Executive Order 13224; as a result, all U.S. property or interests in property of the designated persons are blocked and most transactions by U.S. persons involving them are prohibited unless authorized by OFAC.
  • Treasury warned of possible civil or criminal penalties for sanctions violations, potential secondary sanctions exposure for foreign financial institutions, and pointed to FinCEN’s whistleblower program for tips leading to significant enforcement penalties.

Follow Up Questions

What does it mean for OFAC to designate an organization under Executive Order 13224?Expand

Designation under E.O. 13224 means OFAC has determined the person/entity is linked to terrorism; U.S. property and interests in property of the designated party are blocked, U.S. persons are generally prohibited from dealing with them, and the designee is added to OFAC’s SDN/blocked list—exposure to civil/criminal penalties and possible secondary sanctions follows.

What practical effects do these designations have on donations, bank accounts, and people in Gaza?Expand

Practically, donations to the designated groups are prohibited for U.S. persons and can be blocked; any U.S.-held bank accounts or assets of the groups are frozen; banks and intermediaries may refuse transactions involving them; people in Gaza receiving services from these organizations risk those groups’ funds being blocked and aid partners/donors face legal and reputational risk.

What are OFAC's humanitarian general licenses and how do they affect aid delivery to Palestinians and Gaza?Expand

OFAC’s humanitarian general licenses (published in Dec. 2022 and reiterated in Nov. 2023 guidance) authorize certain categories of humanitarian transactions—e.g., approved activities by U.S. government, certain international organizations, NGOs, and deliveries of medicine/medical devices—so legitimate humanitarian aid to Palestinians/Gaza can proceed if it fits authorized categories or is licensed by OFAC; donors must still do due diligence to avoid prohibited dealings with designated actors.

How can donors and charities verify that their donations won't be diverted to designated groups?Expand

Donors/charities should (1) screen recipients and intermediaries against OFAC’s SDN and consolidated lists; (2) follow OFAC’s humanitarian guidance and applicable general licenses; (3) perform enhanced due diligence (beneficiary identification, recordkeeping, monitoring); and (4) consult OFAC or seek a specific license when there is risk of links to designated groups.

What is the Popular Conference for Palestinians Abroad (PCPA) and what activities does it conduct?Expand

The Popular Conference for Palestinians Abroad (PCPA) is an organization that purports to represent the Palestinian diaspora but, according to Treasury, was clandestinely controlled and directed by Hamas, involved in organizing flotillas to access Gaza, and used by Hamas to expand political influence abroad.

Who is Zaher Khaled Hassan Birawi and what is his role in the PCPA?Expand

Zaher Khaled Hassan Birawi is a United Kingdom–based senior official and founding member of the PCPA’s General Secretariat; OFAC designated him for materially assisting or providing support to the PCPA (a Hamas front), per the Treasury press release.

What documentary evidence did Treasury say it used, and is that evidence publicly available?Expand

Treasury said it used documentary evidence seized from Hamas offices after October 7, 2023 (financial records and internal documents) showing transfers and operational instructions (e.g., records showing Al‑Falah sent over $2.5 million to Hamas). Treasury’s statement does not publish that documentary evidence for public review; OFAC provided a summary in its press release.

What are secondary sanctions and how could they affect foreign banks or organizations that engage with designated entities?Expand

Secondary sanctions are penalties the U.S. can impose on foreign persons/institutions that knowingly engage in significant transactions with designated parties (e.g., blocking access to U.S. correspondent accounts, restricting U.S. market access); foreign banks or organizations dealing with designated entities risk losing U.S. dollar services, correspondent banking access, or facing other U.S. sanctions.

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