U.S. Rep. Bryan Steil (R-WI) has requested information from the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN) regarding U.S.-registered 501(c)(3) nonprofits and their potential involvement in terrorist activity.
“We are concerned that nonprofit organizations with access to the U.S. financial system may be providing material support for terrorist organizations such as Hamas,” wrote Rep. Steil in a June 14 letter sent to FinCEN Director Andrea Gacki. “This would be against the law, a threat to national security, and a material risk for U.S. financial institutions.”
Rep. Steil led the letter, which was also signed by Blaine Luetkemeyer, chairman of the Subcommittee on National Security, Illicit Finance, and International Financial Institutions, and several other Republicans. They requested a non-classified briefing for members and staff of the U.S. House Financial Services Committee by July 1.
The lawmakers are interested in the U.S.-based nonprofits’ potential support for Hamas, Hezbollah, or other affiliated terrorist groups engaged in hostilities against Israel and U.S. personnel in the region, according to their letter.
“Further, we request that FinCEN provide information on communications to financial institutions to assist them with their counter-terrorist financing compliance obligations,” the letter said.
The congressman requested similar information from IRS Commissioner Danny Werfel in a June 20 letter.
“As the agency that has jurisdiction over entities that receive tax-exempt status, I find it concerning recent news reports indicate a U.S. 501(c)(3) non-profit organization was connected to an individual suspected of providing material support for the terrorist organization, Hamas,” wrote the congressman. “Given this concerning report, I would like to know what the IRS is doing to ensure organizations that benefit from nonprofit status are not supporting terrorism.”
Rep. Steil asked Werfel to provide details on what mechanisms are in place to prevent a 501(c)(3) from providing material support to a terrorist organization, and what investigative tools the IRS currently has in place to prevent such support, according to his letter.