It is evident from Singapore terrorism report 2024 that the terrorists continue to rely primarily on cash for financing even though there is a slight inclination towards using cryptocurrencies.
Terrorism threats in Singapore revealed that more terrorists prefer to engage in cash transfers in order to get funds. The adoption of cryptocurrency by these groups remains limited.
In July 2024, Singapore issued a terrorism threat report stating that the threat was increasing because of global insecurity.
Published by the Internal Security Department of the Ministry of Home Affairs, the report highlights the increasing danger for the country.
Increase in cryptocurrency funding to terrorist organizations
Singapore’s government has recently observed that Islamist terrorists are increasingly using cryptocurrencies for their financing. Nevertheless, ISIS still depends mainly on cash remittance to finance its operations.
“While the use of cryptocurrencies is growing, ISIS and its affiliates continue to rely more on cash mules and hawala, an informal value transfer system.”
Terrorist groups continue to predominantly depend on wire transfers, MSBs, and cash couriers to collect funds.
Despite the fact that Singapore has not yet identified any impending threats, the primary worry remains self radicalization over the internet especially with people supporting the Hamas group.
Singapore strengthens anti-terrorism financing rules
The report also noted that in February, a pro-ISIS media group originating from the Philippines began a fund raising drive for fighters, using posters to solicit donations in bitcoins.
The agency also highlighted that financing terrorism is unlawful. Out of the 13 people convicted for this crime since 2015, three are Singpaoreans while ten were foreigners.
The Monetary Authority of Singapore (MAS) has increased the risk category for crypto exchanges and digital payments from ML/NSL to MHL.
As part of implementing enhanced measures to counter-terrorism financing, this update seeks to prevent Singapore’s genuinely free economy from being exploited by terrorists.
The action aims to safeguard Singapore and its position as an important financial and commercial center from terrorist attacks.
