FATF Includes Cryptocurrencies In Funding Report For Far-Right Groups – Bits Media

Financial Action Task Force on Money Laundering (FATF) released a report on how far-right groups are funded, which includes a section on cryptocurrency.

According to the report "Financing of terrorism based on ethnicity or racial background", crypto assets were used by extremists, who have been restricted from accessing traditional payment platforms. According to FATF, some far-right groups have switched to confidential crypto assets, "Which allow you to maintain complete anonymity when making transactions in the blockchain".

“We are seeing a lot of interest in crypto assets from far-right groups and individuals, seeking anonymity, especially after, how they were blocked from accessing major payment platforms. Members of far-right groups, who care about their safety and want more secrecy, often choose cryptoassets. However, it should be noted, that access to information about the amount of money, translated in this way, limited ", - says the report.

The FATF goes on to cite the example of a far-right South African organization issuing its own stablecoin., provided by the South African random in the ratio 1:1. The report notes:

“The stablecoin is managed through a PayApp-style app and allows the group to use digital money.. Transaction data is stored for 24 hours, and after that it is impossible to track them ".

According to FATF, analysis of the bank account statement of an extremist group from South Africa showed, that the organization thus obtained about 268 000 rand ($17 469). 

Another example is the Scandinavian ultra-right group Nordisk Styrke, which accepts donations exclusively in cryptocurrencies. Besides, financial investigation of a terrorist attack, committed in the mosques of Christchurch, New Zealand in March 2019 of the year, showed, what criminals used cryptoassets to transfer money.

Recall, that the FATF was planning to update its recommendations for regulating the cryptocurrency industry in June 2021 of the year. В марте FATF внесла DeFi и NFT в проект рекомендаций по регулированию отрасли.