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Home World News Middle East

How are terror groups like Hamas and Hezbollah funded?

June 6, 2025
in Middle East
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On October 7, 2023, the world was exposed to the unbearable reality Israel has lived with for years: murderous terrorism that goes beyond rockets or isolated attacks and seeks the outright destruction of an entire nation. Hamas carried out an unprecedented massacre in the Gaza border region, prompting a painful question amid global shock: How was such a broad, coordinated, and brutal assault possible?

The answer lies in the terrorists’ murderous ideology – and the money that fuels it. Despite the October 7 massacre, international criticism, and sanctions, the funding engine for these groups continues to operate with little interruption.

Economic support for Hamas and Hezbollah relies, first and foremost, on Iran. According to Western estimates, the Islamic Republic transfers about $700 million annually to Hezbollah and hundreds of millions to Hamas through indirect channels, including cash-filled suitcases, Lebanese money changers, transfers through Syrian banks, and even diplomatic accounts.

Britain’s the Times revealed that one of the methods Tehran uses to transfer funds is through Iranian ambassadors and diplomats operating in Europe, who help funnel cash directly to Gaza and Lebanon.

PEOPLE GATHER in Tehran to mourn the killing of Hezbollah leader Hassan Nasrallah in an Israel Air Force strike in Lebanon, in September. The IAF also destroyed much of the missile arsenal of the Lebanon-based Iranian proxy, the writer notes. (credit: WEST ASIA NEWS AGENCY/REUTERS)

Iran is not alone. NGOs, private donors, and even “charity” institutions in democratic countries serve as additional conduits. The New York Post recently uncovered how an Italian nonprofit called the Association of Solidarity with the Palestinian People raised about $4 million, ostensibly for “humanitarian projects,” but in reality used the funds to purchase weapons and support the families of terrorists.

Additionally, digital currencies have become especially effective tools for terror groups. A report from the US Congressional Research Service explained that since 2020, Hamas has significantly expanded its use of Bitcoin, Ethereum, and other cryptocurrencies, opening digital wallets and promoting them on social media to solicit donations. Though efforts have been made to shut down these wallets, the groups have shifted to more sophisticated tactics, such as “cold” wallets that are offline and beyond online tracking.

Hezbollah, Iran’s terrorist proxy to Israel’s north, operates a global financing network. Beyond Iranian funding, the group profits from drug trafficking, money laundering, smuggling, and fraud. In October 2024, France’s Le Monde revealed how Hezbollah runs trade and transportation networks in West Africa, moving hundreds of millions of dollars annually through these channels.

In Germany, “charity” groups like Orphans Project Lebanon have raised money through local banks for Hezbollah under humanitarian cover. These funds have been used in part to support the families of Lebanese terrorists killed in attacks or in battles with the IDF.

This money is not just about weapons and ammunition. It enables terror groups to rebuild infrastructure after each conflict, maintain armies of thousands, acquire advanced weapons systems, build tunnels, maintain drones, and spread constant propaganda.

The funding also helps Hamas and Hezbollah entrench ideological control. These resources are used to promote hatred through education, operate youth training camps, disseminate antisemitic content, and pay terrorists and their families, creating a steady incentive for terror.

THE OCTOBER 7 attack was not an act of desperation; it was intended as a coordinated strike with Hezbollah to inflict even greater damage on Israel – a show of strength fueled by systematic, ongoing financing.

In the wake of this horrific attack, intelligence and regulatory efforts have increased, but the reality is that most financial channels remain open. The US has imposed new sanctions, including freezing the assets of Hamas financiers worldwide. Germany has also restricted the activities of pro-Hamas organizations.

In Israel, the Shin Bet (Israel Security Agency) and the Israel National Cyber Directorate have intensified efforts to detect and monitor suspicious financial activity.

Yet, cryptocurrency activity continues, and many organizations still operate in Europe and North America under humanitarian cover.

Britain has become the financial capital of Hamas in the West. Senior Hamas officials manage vast funds and raise huge sums, mostly from the public but also from the government. These funds flow directly to Hamas’s military wing.

According to Israeli security sources, Britain ranks among the top three countries globally in terms of the volume of donations to Hamas, alongside certain Muslim countries. In fact, more than a quarter of non-governmental funding for Hamas originates from the UK.

For decades, Britain’s Muslim Brotherhood and its affiliate, Hamas, have operated in mosques, established funding foundations, and created charity groups. In 2001, Islamist organizations formed the “Charity Coalition,” led by Sheikh Yusuf al-Qaradawi, who issued religious rulings permitting suicide bombings against Israelis. The coalition united about 50 Islamic foundations to raise money for Hamas’s terror efforts during the Second Intifada.

To truly sever the lifeline of Hamas and Hezbollah, it is not enough to destroy tunnels; the cash flow must be cut off.

Israel and the world must act on several fronts.They must apply direct political pressure on Qatar and Turkey to halt all support for terrorist groups and organizations under their influence; enact legislation in Israel and globally to enable deeper monitoring of charities, funds, and crypto transactions and to seize assets linked to terrorist entities; and launch global cyber operations to identify and block digital wallets, shut down terrorist payment systems, and block social media accounts, including individuals calling for violence against Jews.

In addition, Israel must run a global public awareness campaign to expose the direct connection between so-called “humanitarian” donations and the funds that ultimately reach terrorists.

The writer is CEO of Radios 100FM, an honorary consul, deputy dean of the Consular Diplomatic Corps, president of Israel’s Radio Communication Association, and formerly a television correspondent for NBC News.

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Tags: cryptocurrencyHamasHezbollahIranterror funding
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