Spain detects increased use of cryptocurrencies for terror financing
Translated from Spanish, summarized and contextualized by DistantNews.
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- Spanish security forces have observed an increase in the use of cryptocurrencies to fund terrorist groups.
- Terrorists are leveraging artificial intelligence to manage digital wallets and program transactions, complicating investigations.
- While not the primary funding method, crypto is growing, with concerns also raised about NFTs and crypto ATMs.
Spanish security forces report a growing trend of terrorist organizations using cryptocurrencies for financing, with sophisticated methods including artificial intelligence to manage transactions.
Every day we have more investigations of terrorist financing with cryptocurrencies.
Lieutenant Juan María Vaquero of the Guardia Civil noted that investigations into terrorist financing via crypto are increasing. He explained that terrorists exploit the perceived anonymity of cryptocurrency, encouraging small donations that accumulate into significant sums. Vaquero cited a recent investigation where over $1.5 million was raised for Hamas through such contributions, highlighting the global scale of the issue despite seemingly small individual amounts.
While acknowledging that cash and shell companies remain the dominant funding methods, Vaquero stressed that cryptocurrency usage is escalating daily. Future threats include the use of Non-Fungible Tokens (NFTs) for financing and money laundering, as well as crypto ATMs, which facilitate anonymous transactions.
They feel confident, send small amounts of one hundred or ninety dollars and we end up with campaigns like the last one we investigated with contributions of two hundred dollars, in which they raised more than one and a half million for (the Islamist group) Hamas.
A significant concern is the application of artificial intelligence in managing numerous digital wallets and programming complex transaction patterns. This AI-driven approach severely complicates investigative efforts and traceability. In response, the Guardia Civil is also exploring the use of AI to counter these threats.
It seems that the numbers are small if we see it from Spain's perspective, but then in the global scope of terrorist groups, they are raising quite a lot of funds with cryptocurrencies.
Fernando Sanz Ayuso of the Economic and Fiscal Crime Unit pointed out that Spain has the fifth-highest number of cryptocurrency ATMs globally. He also expressed concern that some virtual currency exchange providers are slow to implement required anti-money laundering controls and reporting obligations.
NFTs offer a possibility for terrorism financing and also for money laundering.
DistantNews Editorial
Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.
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