The Singapore government says cash, not crypto, remains the “predominant” funding method for terrorist groups.
The Singapore government notes in a new report that Islamist terrorism, particularly groups linked to the Islamic State in Iraq and Syria (ISIS), “remains at the forefront of the global terrorism threat landscape.”
Al-Qaeda, on the other hand, now poses only a “latent threat” to the country’s security.
The government says most ISIS-affiliated groups are financially independent and some rely on social media to raise money.
“While there is increasing use of cryptocurrencies, the primary means of financial transactions by ISIS and its affiliates remain cash couriers and informal value transfer (hawala) systems. Funds flow to ISIS fighters and their families in Syrian detention centers or camps through financial institutions, money service companies and money couriers in neighboring countries.
The report cited US authorities, who noted earlier this year that ISIS was transferring up to $20,000 per month to individuals in the Al-Hol detention camp through intermediaries in Turkey, using the hawala system, money transfer apps and crypto.
Hawala is an informal money transfer network that relies on trust rather than the actual movement of cash. It is mainly associated with the Islamic community.
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