The Trump administration has announced an expanded initiative to disrupt the financing of organizations it accuses of backing political terrorism. Treasury Secretary Scott Bessent stated that the United States would increase scrutiny on charities, non-profits, and international financial networks used for illicit fund transfers. Bessent, speaking at the State Department’s Ministerial on the Resurgence of Political Terrorism, highlighted how terrorist groups exploit legitimate financial institutions and charitable setups to hide funding and sustain operations globally.
The Treasury Department, under President Trump’s directive, is leveraging its authorities to safeguard the integrity of the US global financial systems. Bessent mentioned that the Office of Terrorism and Financial Intelligence, established post the September 11, 2001 attacks, is broadening its mission to combat evolving forms of organized political terrorism. He emphasized the need for institutional tools to adapt as the threat of terrorism evolves.
Bessent noted that terrorist networks are increasingly utilizing international financial systems, cross-border fundraising, and organizations operating as charities or non-profits. He pointed out that legitimate nonprofit and charitable structures are being exploited to conceal the movement of illicit funds supporting political terrorism. The Treasury Department will investigate if tax-exempt entities have been misused for illicit financial activities and take necessary action based on evidence.
The administration has designated four foreign extremist organizations as foreign terrorist entities and sanctioned 17 organizations accused of financing Hamas activities. Bessent highlighted the responsibility of financial institutions to enhance oversight, emphasizing the importance of knowing both clients and grantees. He reiterated that enforcement actions would adhere to US law and respect constitutional rights, including freedom of speech and assembly, while targeting suspected unlawful conduct by terror groups.
