The U.S. Congress subcommittee on Terrorism and Illicit Finance met to discuss the various methods employed by the terrorist groups around the world to get financed. Their final thought was made known in a press release on the 7th September on how crypto has been a poor form of money to subversive groups.
The U.S. Congress Subcommittee Discussion On Terrorism Financing
The increasing trend of terrorism after September 11, 2001, the world trade center attack has made counterterrorism act a necessity for the world. Despite measures and continuous fight against terrorism, the menace is still trending.
Notably, the rate of illegal activities is being fueled through the various means of funding that have sustained traditionally it over the years.
To monitor the significant terrorism means of survival, a United State’s Subcommittee on Terrorism and Illicit Finance considered the factors of terrorism financing, to monitor terror threats and the method of funding. The methods discussed in their discussion includes the traditional financial institution, semi-formal methods such as hawala exchange system and cryptocurrencies.
As noted by the director of analysis for the Foundation for Defense of Democracies (FDD) Center on Sanctions and Illicit Finance, Yaya Fanusie, Al-Qaeda, the Islamic State and other terrorist groups attempt to raise fund via cryptocurrency has not been successful. Their battlegrounds are in regions where cryptocurrency is not operable, which make fiat currency more appealing to raise funds by the groups.
Cryptocurrency offers anonymity to its user through the decentralized digital ledger. In contrast, the fiat currency seems to give more anonymity to the terrorist groups as it is not linkable to any individuals.
Fanusie, however, acknowledges attempts of cryptocurrency funding campaign for the terrorist group, but it remains unsuccessful and as fiat currency takes the lead.
The Need To Monitor Terrorist Cryptocurrency Funding Campaigns
The unsuccessful attempts of terrorism funding via cryptocurrency need to be monitored more to strangle their attempts, especially, because the growth of terrorism is always linked to a means of financing.
Fanusie also noted that to deter the potential success of cryptocurrency fundraising for terrorism; there is a need for government bodies responsible for terrorism finance investment to hone their skills in cryptocurrency transactions analysis.
He further suggests that the authorities should focus on minor cryptocurrency exchange that trades alternative token or privacy token instead of the major exchanges that already work with the AML and KYC policies.