UN Official: Terrorist Activities Still Primarily Rely on Cash and Hawala System, Not Cryptocurrencies

According to a report by Cointelegraph, United Nations officials stated that cash and "Hawala" remain the primary means of funding terrorism, but "sophisticated" terrorist organizations are increasingly turning to cryptocurrency transactions.

According to a report by Cointelegraph, United Nations officials stated that cash and "Hawala" remain the primary ways of financing terrorism; however, "sophisticated" terrorist organizations are turning to cryptocurrency transactions.

According to Wikipedia, Hawala is an informal funds transfer system used in many regions to transfer funds domestically and internationally. They operate outside traditional banking, financial channels, and remittance systems. Hawala networks are widespread, primarily concentrated in the Middle East, North Africa, and India. While following Islamic traditions, users are not limited to Muslims.

United Nations officials held a special meeting of the United Nations Counter-Terrorism Committee (CTC) on October 28-29 in New Delhi and Mumbai, India, to combat terrorism using "emerging technologies." United Nations Counter-Terrorism Financing Coordinator Svetlana Martynova stated that terrorist organizations excluded from the "formal financial system" are gradually turning to cryptocurrency to fund terrorist activities.

Martynova mentioned that while cash and Hawala have been the main methods of terrorist financing, they are also adapting to technological advancements, including the misuse of cryptocurrencies.

"If they are excluded from the formal financial system and want to make purchases or investments anonymously, and they are sophisticated in this technology, they are likely to abuse cryptocurrencies."

United Nations Secretary-General Antonio Guterres stated that while emerging technologies have unparalleled potential to improve global human conditions, the harm they cause extends far beyond funding terrorism. "Terrorists and other hate-motivated individuals are abusing emerging technologies to spread false information, incite discord, recruit and radicalize, mobilize resources, and launch attacks."

Martynova mentioned that the United Nations plans to involve countries in regulation and address this issue at an international level, but it is a challenge because few countries are currently regulating, and even fewer are successfully enforcing such regulations to prevent malicious actors.

This article is authorized to be republished from Horizon News Network