In a Reuters report today, Brian Nelson, the US Treasury’s under secretary for terrorism and financial intelligence, also said the US perceives Iran’s capacity to move its oil as being reliant on service providers based in Malaysia.

Nelson, who was speaking in Singapore, is also expected to visit Malaysia.

Reuters reported last week that the visit comes as the US Treasury increases its focus on terrorist financing through Southeast Asia, including through fundraising efforts and illicit Iranian oil sales.

The news agency reported that there had been an uptick in money moving to Iran and its proxies, including Hamas, through the Malaysian financial system, with Nelson expected to discuss the US’s concerns and the sanctions risk that such activities pose.

The US designated Hamas as a foreign terrorist organisation in 1997.

In March, Prime Minister Anwar Ibrahim said Malaysia only had ties with the political wing of Hamas, adding that the country had no relationship with any militant outfit.

Anwar also said the country’s foreign policy had been consistent over the years, citing its stand against apartheid and ethnic cleansing.

Hamas, which has controlled the Gaza Strip for nearly two decades, attacked Israel on Oct 7, killing about 1,200 people and abducting 252 others – of whom 133 are believed to remain in captivity in Gaza.

More than 34,600 Palestinians have been killed in the ensuing conflict, according to Gaza health officials.