The government of Singapore says cash, not crypto, remains the “predominant” method of financing for terrorist groups.
The Singaporean government notes in a new report that Islamist terrorism, particularly groups affiliated with the the Islamic State in Iraq and Syria (ISIS), remains “at the forefront of the global terrorism threat landscape.”
Al-Qaeda, by contrast, now only poses a “simmering threat” to the country’s security.
The government says most ISIS-affiliated groups are financially independent and some rely on social media to drum up funds.
“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.
The report cited US authorities, who noted earlier this year that ISIS transferred up to $20,000 per month to individuals at the Al-Hol detention camp through intermediaries in Turkey, using the hawala system, cash transfer apps and crypto.
Hawala is an informal money-transferring network that relies on trust rather than the actual movement of cash. It is particularly associated with the Islamic community.
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