Illicit Crypto Terrorist Financing On The Rise, New Singapore Report Finds
A newly published report by Singapore’s Ministry of Home Affairs notes that the illicit use of crypto in terror financing is on the rise, though cash is still the dominant method used in transferring value.
According to the 2024 Singapore Terrorism Threat Assessment Report, the Southeast Asian country found a slight increase in digital use across terrorist groups, including ISIS and its counterparts.
“Most ISIS-affiliated groups are financially autonomous and some affiliates use social media to raise funds,” the report read. “Although there is increasing use of cryptocurrencies, the predominant means for financial transactions by ISIS and its affiliates remain cash couriers and informal value transfer systems (hawala).”
“Funds have been flowing to ISIS fighters and their families in Syrian detention facilities or camps through financial institutions, money service businesses and cash couriers in neighboring states,” it further alleged.
The assessment then highlighted that U.S. authorities reported in 2022 that ISIS transferred upwards of $27,000 each month to individuals “at the Al-Hol detention camp through intermediaries in Turkey via the hawala system, and via cash transfer apps and cryptocurrency.”
While Singapore has not prosecuted anyone for terrorism financing in the past year, the Southeast Asian country has been high since the October 7, 2023 Hamas attack on Israel that saw nearly 1200 civilians killed.
”As a global financial center and transport hub with a significant migrant workforce, Singapore remains a potential source of funds for terrorists and terrorist organizations abroad,” the report stated.
Singapore’s latest terrorism assessment comes amid increased international political discussions on the
