A Singapore report reveals that cash remains the primary funding method for terrorists, with cryptocurrency usage still relatively low.
Points
- Cash transfers are still the main method for terrorist funding.
- Cryptocurrency usage by terrorist organizations remains low.
- Singapore’s terrorism threat assessment highlights global instability.
- The government emphasizes the crime of funding terrorism.
- Singapore increases regulations to curb terror financing.
Singapore’s internal investigation into nationwide terrorism threats has highlighted a significant reliance on cash transfers for fundraising, contrasting with the relatively low adoption of cryptocurrencies by terrorist organizations. The Singapore terrorism threat assessment report 2024, released on July 25, points to elevated terrorism threats due to global instability, as outlined by the Internal Security Department of the Ministry of Home Affairs.
Despite a noted increase in the use of cryptocurrencies by various Islamist terrorist groups, the Islamic State in Iraq and Syria （ISIS） continues to receive most of its funding through cash couriers and informal value transfer systems like hawala. These traditional methods remain the preferred choice due to their ability to bypass regulatory scrutiny and offer anonymity.
The report also cites a February fundraising campaign by a Philippines-based pro-ISIS media group, which solicited cryptocurrency donations to support mujahideen fighters. While highlighting the growing use of digital assets, the government stresses that funding terrorism is a crime, noting that 13 individuals have been convicted for terror financing since 2015, including three Singaporeans and 10 foreigners.
To counteract the risks associated with cryptocurrency and other funding methods, Singapore’s Monetary Authority recently raised the risk level for crypto exchange platforms and digital payment token service providers from medium-low to medium-high. This regulatory update aims to prevent terrorist organizations from exploiting Singapore’s financial openness as an international financial, business, and transport hub.
解説
- The continued preference for cash transfers over cryptocurrencies in terrorist financing underscores the limitations of digital assets in certain illicit activities.
- Traditional methods like cash couriers and hawala systems remain effective for terrorist organizations due to their low visibility and regulatory oversight.
- Singapore’s proactive measures to increase regulatory scrutiny on crypto exchanges reflect a broader trend of tightening controls to prevent the misuse of digital assets for illegal purposes.
- The conviction of individuals for terror financing highlights the effectiveness of Singapore’s legal framework and the ongoing need for vigilance in monitoring financial transactions.
- By increasing the risk level for crypto service providers, Singapore aims to enhance its defense against potential financial abuses while maintaining its position as a global financial hub.