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CRITICAL THREAT · Financial Fraud and Sanctions Evasion

FinCEN Alert: Iranian Regime Abuse of Religious Charity Networks

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued an alert regarding the Iranian regime's exploitation of religious charity networks to fund illicit activities and evade sanctions.

10/30/2026Global financial institutionsCharitable and nonprofit organizationsSocial media platforms used for fundraisingInformal money transfer systems (hawalas)

Warning signs

  • Charitable organizations that solicit donations but provide no clear charitable services.
  • Organizations that openly support the Iranian regime or its terrorist proxies in fundraising appeals or on social media.
  • Receipt of large, unexplained donations followed by significant wire transfers or checks to other nonprofits.
  • Efforts by an organization or its employees to evade standard reporting or recordkeeping requirements.
  • Requests for donations via cash, gift cards, virtual currency, or wire transfers.
  • Organizations with names that closely mimic reputable or well-known charities.

What you should do

  • Research any charity before donating by searching its name alongside terms like 'complaint,' 'review,' or 'scam.'
  • Verify the tax-exempt status of an organization using the IRS Tax Exempt Organization Search tool.
  • Use secure payment methods like credit cards or checks; avoid donating via wire transfer, cryptocurrency, or gift cards.
  • Check with your state charity regulator to ensure the organization is registered to solicit donations.
  • Report suspected charity fraud to the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.
As part of 'Operation Economic Outcast,' FinCEN has warned that the Iranian regime is actively co-opting religious tithes, known as 'khums,' from the global Shi’a community. These funds are being diverted to support terrorist proxies and intelligence activities. The regime often utilizes charitable organizations as fronts to move money through informal financial channels, such as hawalas and cash couriers, to bypass international financial oversight. Consumers are urged to exercise extreme caution when donating to religious charities, as these networks may be used to facilitate money laundering or support sanctioned entities.

Sources

https://www.fincen.gov/system/files/2026-10/FinCEN-Alert-Iranian-Charity-Network-Abuse.pdfhttps://home.treasury.gov/news/press-releases/sb0661https://consumer.ftc.gov/features/donating-safely-and-avoiding-scamshttps://www.fbi.gov/how-we-can-help-you/common-frauds-and-scams/charity-and-disaster-fraudhttps://www.fincen.gov/resources/advisoriesbulletinsfact-sheets