A report published by the Philippine Institute for Peace, Violence and Terrorism Research (PIPVTR) reveals that terrorist groups related to Islamic State (IS) in Southeast Asia recently made their first transactions using crypto. The report further revealed that the funds are helping finance regional terror groups like the Jemaah Ansharut Dalauh and the Mujahideen Eastern Timur in Mindanao. The report detailed a money-laundering operation’s use of crypto, which consisted of two phases, according to the PIPVTR. Free job alert pages assist users in gaining access to jobs, sometimes even within the crypto community.
Terror groups in Southeast Asia can trade crypto outside the supervision of regulatory institutions.
The first was where crypto assets of “suspicious origin” were channeled through anonymous exchanges. This “deliberately obfuscated” transactions and the origins of coins, making tracking them more difficult, according to the report. The Philippine Institute for Peace, Violence and Terrorism Research wrote that the second phase refers to an exchange of these crypto funds into fiat money which, then, returns the funds to the legal money cycle. In crypto-only exchanges, cryptocurrencies can be exchanged with one another.” The PIPVTR study warns that terrorist groups in Southeast Asia can trade crypto outside regulatory institutions’ supervision, which is a significant concern given the loose legal framework.
The Philippines lack anti-money laundering and counter-terror financing laws for crypto
The institute that tracked crypto transactions made by terror organization calls on the authorities to implement Anti-Money Laundering and Countering Financing Terrorism procedures for crypto because the system is fragile, and they accuse the government of losing control of financial flows. PIPVTR also showed concern regarding the increased use of the privacy-focused cryptocurrency like Monero (XMR), which makes it easier to hide illegal activity. The report cited the Marawi Siege case that occurred back in 2017, where unconfirmed reports of private remittances and cash couriers with crypto helped finance the terrorist groups involved. The authorities ignored these reports.