• The prevalent use of bank accounts and online payment platforms for DVE-linked financial activity may stem from their widespread role in facilitating person-to-person payments for domestic transactions .
• While some DVEs may prefer regulated financial institutions for fund transfers , financial transactions by undesignated U . S . persons or groups promoting extremist rhetoric are generally not prohibited unless associated with planned violent acts or other illicit activities .
• Financial transactions conducted by undesignated U . S . individuals or groups advocating extremist views are typically permissible and not considered unlawful unless linked to a planned violent action or other illicit behavior .
Difficulty distinguishing terrorism-funding transactions from legitimate daily transactions without sender / recipient information or some indication of illicit activity .
• Financial transactions by undesignated U . S . individuals or groups promoting extremist views are generally legal unless associated with planned violent actions or illicit behavior .
• Suspected terrorists or terrorist financiers might conduct transactions exhibiting other signs of potential illegitimacy , such as structuring or activities inconsistent with a customer ’ s profile .
• Approximately 30 percent of relevant financial reports linked to suspected terrorists revealed suspicious deposits in accounts , including suspected cash or check structuring , or transactions with unknown sources or uses of funds , according to one financial reporting assessment .
Helping Iran
Multiple investigations conducted concurrently by the New York Department of Financial Services , the Justice Department , The Office of the Comptroller of the Currency ( OCC ), and the New York District Attorney ’ s Office unveiled the complicit role played by global banks in facilitating Iran and its agents .
These inquiries revealed a pattern of falsifying SWIFT wire payment directives among many major global banks , leading to the unlawful laundering of billions of dollars for Iran . The Society for Worldwide Interbank Financial Telecommunications ( SWIFT ) system powers most international money and security transfers . It ’ s a vast messaging network used by financial institutions to quickly , accurately , and securely send and receive information , such as money transfer instructions .
Specifically , each bank ensured the anonymity of Iranian U . S . dollar clearing activities through their New York branches by manipulating SWIFT wire payment instructions . When necessary , bank employees “ repaired ” unaltered payment directives by removing unwanted data , inserting false information , or returning the payment message to Iranian clients for modification and resubmission .
This enabled the banks to create new payment messages for their New York branches without any indication of Iranian involvement . Additionally , the investigations found that many of the implicated global banks had also engaged in illegal trade finance transactions with Iran and its agents .
The Issue Of Intent
Contemporary examples of American banks allegedly funding terrorist organizations underscore the role that courts can play in combating illicit financial activities like those in Iran . Paulos offered an example .
“ We have judgments against the Iranian banks for supporting terrorism , by facilitating transactions and channeling money and goods to designated terrorist groups ,” Paulos said .