Authored by Arijit Sarkar via CoinTelegraph.com,

Singapore’s internal investigation into nationwide terrorism threats has revealed a significant reliance on cash transfers for fundraising. In contrast, the adoption of cryptocurrency among terrorist organizations remains low.

The Singapore terrorism threat assessment report 2024, released July 25, highlighted an elevated terrorism threat to the nation owing to global instability. The report was issued by the Internal Security Department of the Ministry of Home Affairs.

Bypassing regulations with cash

The Singapore government noted an increase in the use of cryptocurrencies to raise funds for terrorist activities by various Islamist terrorist groups. However, the Islamic State in Iraq and Syria (ISIS) continues to receive most of its funding through cash transfers.

“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).”

Wire transfers through financial institutions, money service businesses and cash couriers remain the top choice for terrorist organizations to raise capital. While Singapore reported no indication of an imminent attack, the primary threat driver continues to be online self-radicalization driven by supporters of the terrorist group Hamas.

Crypto donations in terror financing

The report also noted that, in February, a Philippines-based pro-ISIS media group ran a fundraising campaign in support of the “mujahideen (fighters)” and shared posters soliciting cryptocurrency donations.

The agency reminded citizens that funding terrorism is a crime. Since 2015, 13 individuals have been convicted for terror financing, which includes three Singaporeans and 10 foreigners.

Singapore’s ongoing effort to curb terror financing through regulation

The Monetary Authority of Singapore (MAS) recently increased the risk level for crypto exchange platforms or digital payment token service providers from medium-low to medium-high as part of an update to the country’s laws on Countering the Financing of Terrorism.

Key findings of the Money Laundering National Risk Assessment in the Anti-Money Laundering landscape. Source: MAS

The change aims to prevent terrorist organizations from exploiting Singapore’s economic openness as an international financial, business and transport hub for terrorist financing purposes.

[ZH: These findings run in direct contrast to Senator Elizabeth Warren’s constant diatribes against crypto.]

As Decrypt’s Stephen Graves notes, her intense scrutiny of crypto mining in the U.S. comes as she faces headwinds in her campaign to impose tighter restrictions on crypto in the U.S.

Just this week, Sen. Roger Marshall (R-KS) pulled his support for Warren’s Digital Asset Anti-Money Laundering Act of 2023. His withdrawal was especially notable because he co-sponsored the bill.

Crypto firms have stepped up their efforts to unseat Warren, who has linked the digital asset class to crimes including child sexual exploitation, terrorist financing and the fentanyl trade.

Ripple Labs has donated $1 million to help defeat prominent crypto critic Sen. Elizabeth Warren (D-MA) this November.  A company spokesperson confirmed to Decrypt on Tuesday that it made the payment to the Commonwealth Unity Fund, a super PAC set up to support the campaign of one of Warren’s Republican challengers, crypto attorney John Deaton.  The spokesperson declined, however, to comment on whether Ripple plans to spend additional funds on the race. They also did not clarify how the company’s…

This month, Ripple Labs donated $1 million to the Commonwealth Unity Fund, a a super PAC set up to support the campaign of one of Warren’s Republican challengers, crypto attorney John Deaton.

In February, it was revealed that pro-crypto super PAC Fairshake, which has raised hundreds of millions of dollars from crypto firms, poured $10 million into attack ads directed at prominent Warren ally Katie Porter, a Democratic congresswoman currently in a four-way race for California’s open U.S. Senate seat.