Extreme Right-Wing Groups Using Virtual Assets and Stablecoins to Move Funds: FATF Report
The Financial Action Task Force (FATF) released a report called “Ethnically or Racially Motivated Terrorism Financing” that talks about the use of cryptocurrencies by terrorists to move funds.
The global anti-money laundering watchdog said few countries had designated extreme right-wing groups (ERW) or individuals as terrorists who appear to be becoming more adept at disguising their financial activities.
Some of these ERWs are also using virtual assets like Bitcoin to move funds, according to a new FATF report. Using “so-called privacy coins” meanwhile allows them to maintain anonymity when making transactions. The report said,
“There has been plenty of interest in VAs from different ERW groups and individuals looking for anonymity, especially after being removed from mainstream payment platforms.”
Those who are more security-conscious and looking for a greater level of secrecy “often choose VAs.” However, the agency noted that “there is limited information on the volume of funds being transferred in this way.”
The FATF further points to the use of stablecoins, one created by the group itself “where transactional data only lasted 24 hours before becoming untraceable.” One far-right organization in South Africa created this stablecoin which was managed by an application styled PayApp that “enables the group to use digital money as cash.”
The report also mentions that these groups have property “central” to their fundraising activities as such argues that authorities should target them to deter terrorist financing and disrupt related financial networks.
Additionally, these groups are using concerts, music festivals, mixed martial arts events, and merchandise sales to raise funds, socialize, and network.