Cryptocurrencies, digital crowdsourcing enabling terror groups: India at UN

Emphasising that the new financial and payment technologies methods including cryptocurrencies and digital crowdsourcing are enabling terror groups for collecting and transferring funds, India at UN on Thursday (local time) urged member states to strengthen counter-financing structures at par with international standards to curb terrorism.

Speaking at UNSC special joint meeting, Rajesh Parihar, First Secretary, India's Permanent Mission to UN said: "Misuse of blockchain technology, virtual/cryptocurrencies, digital crowdsourcing, prepaid phone cards etc have posed new risks to Combating the Financing of Terrorism (CFT) efforts. The proliferation of fake charities and fake non-profit organisations (NPOs) during the Coronavirus (Covid-19) pandemic has further exacerbated this risk."

"An effective multilateral approach to CFT, built on PPP to identify and mitigate new terror-financing risks, strengthening support to financial watchdogs such as FATF to ensure that member states bring their counter-financing structures at par with international standards are needs of the hour today," Parihar added.

The United Nations Security Council meeting was on Terrorist Financing Threats and Trends and the Implementation of Security Council Resolution 2462.

India also asked the international community to call out the States who wilfully provide financial assistance, safe havens to terrorists and hold them accountable.

"India is committed to support and strengthen UN efforts to assist member states lacking Combating the Financing of Terrorism (CFT) capacities by providing financial support," he said.

"Continuous expansion of terrorist groups is a reality check for all of us that despite Security Council resolution 2462 to counter the financing of terrorism (CFT), its implementation by the member states remains challenging for reasons including the lack of political will," he added.

Speaking further, he said: "The global implementation survey of resolution 1373, adopted by the CTC on November 4 and FATF's latest report (October 2021) on "Jurisdictions under Increased Monitoring", highlights the continued terror-finance risk due to lack of action by a country in our neighbourhood."

Underlining that India is steadfast in its commitment to CFT and has developed over the last few decades the necessary capabilities, legal frameworks, institutions, best practices for CFT, Parihar said that India took measures to bring its financial sectors to international standards including those of FATF.

"An effective multilateral approach to CFT, built on PPP to identify and mitigate new terror-financing risks, strengthening support to financial watchdogs such as FATF to ensure that member states bring their counter-financing structures at par with international standards are needs of the hour today," Parihar added.

Yesterday, Indian Prime Minister Narendra Modi has urged democracies around the world to ensure that crypto-currencies or bitcoin do not end up in the wrong hands and spoil the youth.

Delivering a keynote address at The Sydney Dialogue, PM Modi said that it is essential for democracies to work together to create standards and norms for data governance.

"It should also recognise national rights and, at the same time, promote trade, investment and the larger public good," he said.