UN Says Terrorists Are Funding Activities Through Crypto Transactions

cryptonews.com:

Terror organizations are increasingly turning to cryptoassests to fund their activities, said United Nations (UN) officials.

During the UN’s Counter-Terrorism Committee (CTC) meeting in India on Friday and Saturday, the officials discussed the "threats and opportunities related to new payment technologies and fundraising methods," including the use of these "new and emerging" technologies to fund terrorist activities. 

One of the speakers was Svetlana Martynova, the Countering Financing of Terrorism Coordinator at the UN, who said that "prevalent methods" of financing terrorist organizations are still cash and hawala. The latter is a traditional money-transferring system, whereby the money doesn't move physically - it is paid to an agent who instructs an associate in a specific country or area to pay the final recipient.

She added,

"However, there is also an increase of their use in combination with new payment methods."

Terrorists are known to have abused privacy coins, virtual assets, mobile payments systems, as well as online exchanges and wallets, she said. 

Martynova added that,

"Blockchains, cryptocurrencies, and crowdfunding sometimes pose a complex money trail for financial investigators to follow." 

As for methods, terrorists often use social media to solicit donations, they have online merchandise sales, and they utilise crowdfunding platforms. 

Some of the new products and services can enable anonymous cross-border transfers, and the risks are compounded by the increasing number and types of service providers, as well as persisting gaps in the regulation and enforcement globally, Martynova stated. 

The type and scale of abuses of the new financial instruments and technologies depend considerably on the regional and