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.

Singapore Finds Increasing Illicit Crypto Use In Terror Financing

“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.

Senator Drops Out Of Anti-Crypto Bill Co-sponsored By Elizabeth Warren

Singapore’s latest terrorism assessment comes amid increased international political discussions on the role of digital assets in money laundering and terror financing.

Earlier on Friday, reports emerged that U.S. Senator Roger Marshall (R-KS) withdrew his support for the Digital Asset Anti-Money Laundering Act (DAAMLA), a bill he introduced alongside staunch anti-crypto Senator Elizabeth Warren (D-MA) in 2022 that would see increased regulation on the crypto sector as a whole.

HUGE NEWS!

After tremendous community pressure, Sen. @RogerMarshallMD has withdrawn his support for the Crypto Ban Bill S2669. This is a massive victory for our community! It's incredibly rare for a senator to back away from their own bill.

We only have one more… https://t.co/eNuK1NEKkU

— Perianne (@PerianneDC) July 25, 2024

Digital asset advocacy group the Blockchain Association expressed concern over the bill earlier this year, claiming it “risks our nation’s strategic advantage, threatens tens of thousands of U.S. jobs, and bears little effect on the illicit actors it targets.”

The letter noted that while members of the crypto community support combatting illicit activities within the blockchain sector, DAAMLA would “inadvertently hinder law enforcement and national security efforts by driving the majority of the digital asset industry overseas.”

Warren is currently running for re-election against action pro-crypto advocate and trial attorney John Deaton.

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