Report: US plans to block M’sia from being Hamas’ fund-raising point

Report: US plans to block M’sia from being Hamas’ fund-raising point

Published: May 9, 2024 12:29 PM


A senior US Treasury official said they are trying to prevent Malaysia from becoming a jurisdiction where Hamas could fundraise and move money.

According to Reuters, the official, who spoke on condition of anonymity, also said the US sees Iran’s ability to move its oil being reliant on service providers based in Malaysia, with oil being transferred near Singapore and throughout the region.

“The US Treasury is increasing its focus on financing for militant groups routed through Southeast Asia, including through fundraising efforts and illicit sales of Iranian oil.

“We are concerned about Hamas’ capacity to fundraise in the region, including in Malaysia, so we want to have a direct conversation about those concerns,” the official said.

The official added that there was a “concerning uptick” in attempts by Iran and its proxies to raise funds in the region, sometimes through charities.

“It’s appalling that they seek to take advantage of the outpouring of support for the Palestinian people to siphon money for their violent and destabilising activities,” said the official who also declined to name the suspect charities.

On May 3, Reuters reported that US Treasury officials would visit Malaysia amid allegations of increased funds flowing to Iran and its proxies, including Hamas, through the Malaysian financial system.

Quoting a source who spoke on condition of anonymity, Reuters said a top sanctions official from the US Treasury Department will visit Malaysia.

“Treasury undersecretary for terrorism and financial intelligence Brian Nelson is expected to discuss US’ concerns and the sanctions risk such activity poses,” the source said. Treasury’s general counsel, Neil MacBride, will also be on the trip.

“The visit comes as the Treasury has increased its focus on terrorist financing through Southeast Asia, including through fundraising efforts and illicit Iranian oil sales, the source said,” read the report.

Treasury undersecretary for terrorism and financial intelligence Brian Nelson


Yesterday, Communications Minister Fahmi Fadzil said the government is ready to discuss with the US over its concerns regarding the allegations.

He also acknowledged that the issue had Prime Minister Anwar Ibrahim’s attention and was briefly discussed during today’s cabinet meeting.

According to the US Energy Information Commission, it indicated that China is the world’s largest importer of crude oil, buying 11.3 million barrels per day in 2023.

Based on the figures, it also indicated that China imported 54 percent more crude oil (1.1 million per day) from Malaysia in 2023 compared to that in 2023.

However, it noted that crude oil imports from Malaysia exceeded the country’s total crude oil production.

“Industry analysts believe that much of the oil shipped from Iran to China was relabelled as originating from countries such as Malaysia, the United Arab Emirates, and Oman to avoid US sanctions against countries engaging in petroleum transactions with Iran.”