FinCEN Advisory Warns Financial Sector of Evolving ISIS Terrorism Financing Tactics

The US Financial Crimes Enforcement Network (FinCEN) has issued a new advisory urging financial institutions to remain alert to the shifting tactics used by the Islamic State of Iraq and Syria (ISIS) and its affiliates to fund acts of terrorism. Released on 1 April 2025, the advisory outlines how the terrorist group continues to exploit instability in conflict zones and leverage international sympathiser networks to move funds undetected.

FinCEN’s warning follows a series of high-profile attacks, including the 2024 mass casualty events in Iran and Moscow carried out by ISIS-Khorasan (ISIS-K), and the 2025 New Year’s Day terrorist attack in New Orleans by an ISIS-inspired homegrown violent extremist (HVE). These incidents underscore the enduring and global threat posed by ISIS and its ability to inspire or direct acts of terrorism across borders.

The advisory offers detailed typologies and red flags to help financial institutions detect and report suspicious transactions. Methods identified include the use of informal value transfer systems, shell companies, charitable fronts, and digital financial platforms to obscure the source and destination of funds.

FinCEN Director Andrea Gacki stressed the importance of vigilance:

The threat from ISIS has evolved and changed over time, but its malicious intentions against the United States, its interests, and its allies have remained consistent.

This action forms part of a decade-long effort by the US Treasury, in coordination with domestic and international partners, to disrupt ISIS’s financial networks. It also supports the National Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Priorities and aligns with the Treasury’s 2024 National Terrorist Financing Risk Assessment.

The advisory reinforces the pivotal role financial institutions play in combatting terrorism financing. By integrating the red flags and risk indicators provided, firms can strengthen their anti-financial crime frameworks and contribute to wider efforts to disrupt terrorist activity.

Read the press release here. The full alert is available online at FIN-2025-A001.