India at UNSC affirms cryptocurrencies & digital crowdsourcing are enabling terror groups

India at the UN Security Council (UNSC) meeting on Thursday, 18 November, said that the new financial and payment technologies methods, including cryptocurrencies and digital crowdsourcing are enabling terror groups for collecting and transferring funds. While speaking at the Joint special meeting on Terrorist Financing Threats and Trends and the Implementation of Security Council Resolution 2462, First Secretary in India's Permanent Mission to the UN, Rajesh Parihar, urged member states to strengthen counter-financing structures at par with international standards to curb terrorism. 

“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 COVID pandemic has further exacerbated this risk,” Parihar said. 

"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," he added.

It is to mention that Parihar’s remarks came the same day Prime Minister Narendra Modi urged democracies across the globe to ensure that crypto-currencies or bitcoin do not end up in the wrong hands and spoil the youth. 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 stated. 

'There are states clearly guilty of aiding terrorism' 

Meanwhile, during the same meeting, Parihar noted that there are states that are “clearly guilty” of aiding and supporting terrorism and wilfully providing financial assistance to terrorists. He urged the international community to collectively call out such nations and hold them accountable for their actions. He also stated that India is committed to supporting and strengthening UN efforts to assist member states lacking combatting the Financing of Terrorism (CFT) capacities by providing financial support. 

Moreover, Parihar even cited reports that pointed to the laxity of some nations in South Asia in prosecuting leaders of UN-designated terror groups and where terror outfits continue to raise funds. He said that the global implementation survey of resolution 1373, adopted by the CTC on November 4 and FATF’s latest report on ‘Jurisdictions under Increased Monitoring’ highlights the “continued terror-finance risk due to lack of action by a country in our neighbourhood” - a reference to Pakistan.

(With inputs from ANI)