The UN has reported that terrorists are using crypto transactions as a source of funding for their operations

According to United Nations (UN) authorities, terrorist groups increasingly rely on crypto assets to finance their operations.

During the Friday and Saturday meeting of the UN’s Counter-Terrorism Committee (CTC) in India, officials examined “threats and possibilities connected to new payment technology and fundraising techniques,” including the use of “new and emerging” technologies to support terrorist activities.

The UN’s Countering Financing of Terrorism Coordinator, Svetlana Martynova, said that the “prevalent ways” of financing terrorist groups are still cash and hawala. The latter is a conventional method of money transfer in which the funds are given to an agent who advises an associate in a certain nation or region to pay the end recipient.

She went on, “However, their usage in addition to new payment methods is also increasing.” She said that it is known that terrorists have misused privacy coins, virtual assets, mobile payment systems, and online exchanges and wallets.

Martynova noted that The money trail left by blockchains, cryptocurrencies, and crowdfunding might be difficult for financial investigators to follow.

As for strategies, terrorists often seek funds via social media, sell items online, and use crowdfunding sites.

Some of the new goods and services may facilitate anonymous cross-border transfers, and the dangers are exacerbated by the rising number and kinds of service providers, as well as the ongoing regulatory and enforcement gaps on a worldwide scale, according to Martynova.

The nature and scope of abuses of new financial tools and technology are highly dependent on the geographical and economic circumstances, as well as the terrorists’ intended victims.

Moreover, she added, these new technologies may make Anti-Money Laundering / Combating the Financing of Terrorism (AML/CFT) quicker and more efficient. In order to exchange knowledge and obtain a deeper understanding of the technology, “vigorous” public-private collaborations are required.

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