By PAUL O’DONOGHUE, Senior Correspondent
TERRORIST group ISIS is using virtual assets such as crypto to fund their operations, the Financial Action Task Force (FATF) has warned.
The Paris-based group, which sets international AML (anti-money laundering) standards, said the technology is used as a way to conceal payments.
“In 2024, ISIL-K has increasingly used virtual assets for organisational transfers and to collect donations internationally,” FATF President Elisa de Anda Madrazo said in a speech to the UN Security Council.
“We see an increasing level of abuse of virtual assets. With some groups systematically leveraging them and employing obfuscation techniques. And shifting towards alternatives promoted as more private and secure.”
Ms de Anda said to address this, FATF has updated its Standards. She said these support countries and the private sector to “monitor the development of virtual assets”.
She also said the updated FATF standards “provide tools to identify potential underlying terrorist activities”.
FATF and US in ISIS crypto warning
Ms de Anda’s comments on ISIS using crypto comes shortly after a similar warning from U.S. officials.
FinCEN, the AML unit of the U.S. Treasury, recently warned banks that ISIS is turning to digital assets such as crypto to finance its operations.
In April, it said “ISIS’s Al-Karrar office sent up to $25,000 to ISIS-K in virtual currency each month” in 2023.
Ms de Anda also said the the threat posed by “lone individuals radicalized by ISIL ideology is rising”.
“Such actors rely on microfinancing strategies drawn from petty criminal activity, as well as technology-enabled methods, including social media features,” she said.
“While traditional financing channels and schemes continue to be used, there is a marked increase in the interlink of diverse methods and the use of digital technologies.
“This adds to the complexity of the shields we have to put in place to combat terrorist financing.”
We hope you enjoyed reading this article
If you would like unlimited access to AML Intelligence premium articles, newsletter delivered twice a week, access to our Global Bank Fines and Penalties database, free access to Boardroom Series events and much more, select one of our subscription options and become a subscriber!
