State urges caution on cryptocurrency, reveals it's used to fund terrorists
By Barack Oduor |
The state is wary of the growing popularity of cryptocurrency among young Kenyans seeking to earn a living digitally as fresh reports indicate that terrorists are using it to raise funds in executing their terror missions.
During the third Nairobi Caucus on countering terrorism organised by the National Counter Terrorism Centre, it came out that terrorism networks in the continent and globally are exploiting digital emancipation such as cryptocurrency and crowdfunding among others to raise funds to commit terror attacks.
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The National Security Adviser to the president, Amb Dr. Monica Juma expressed worry that countering terrorism financing is quickly falling among the lists of priority in the continent, urging the National Counter Terrorism Centre to never lose focus in this area of security importance.
Juma hailed the caucus meeting, describing it as timely, and that it has helped the East Africa region and the whole continent in taming terror threats by disrupting terrorists 'plans.
She added that in understanding the complexities of technologies and how terrorists exploit them, it is of high importance that speed is essential in understanding the appetites of terror groups in exploiting technological advancements in terrorism financing.
"This caucus has helped in understanding denigrating terrorism threats in our region while also resonating globally with perspectives that are Africa-inspired and internationally impactful," said Juma.
In denying terrorists access to finance to limit their capability and reach, Juma had five suggestions that include enhancing financial research and collaboration and developing robust security and regulatory frameworks that are harmonised to seal the existing gaps.
Juma urged youths to be cautious about some sources of income digitally such as cryptocurrency, "Our youths must be careful in new technology sources of income such as cryptocurrency because terrorists use such platforms to raise money in aiding their terror acts."
Proper financing
Nancy Muchiri of the Financial Reporting Centre said a successful terrorism operation needs financing for moving, weapons and other logical purposes and that this has been demonstrated in past terrorist attacks in the country such as the Dusit 2 attack, Westgate and the Garissa University incident.
"Kenya finds itself in a region occupied by terrorist groups. Understanding the manifestation of terrorism financing helps in countering the threats," said Muchiri.
She revealed that Kenya conducted a terror financing risk assessment in 2023 that clearly outlined how funds are raised, moved and stored. In her explanation, the terror groups are raising funds through legal and illegal channels.
"Terrorist organisations and financiers should therefore be identified and deprived of sources and means to finance and support terrorism activities. This includes proper implementation of targeted financial sanctions against persons and entities designated by the United Nations Security Council and applicable financial sanction regimes," she added.
The Financial Reporting Centre has proposed the implementation of a raft of measures to prevent illicit financial flow that can be exploited by terror groups to aid their operations.
Among those present include heads of counterterrorism agencies from Botswana, DRC, Rwanda, South Africa, Tanzania, Uganda, Zambia and Zimbabwe, from the East African Community and Southern Africa Development Community.
International partners included the United Kingdom, and the US among other countries.
NCTC director Rosalind Nyawira said the growing exploitation of technology and communication calls for sustained and innovative approaches in the region's counterterrorism efforts.
"Terrorist groups active in our region have demonstrated an affinity for technology, including unmanned systems, digital currencies and informational tools necessary for communication recruitment and incitement."
Nyawira said the region is witnessing a resurgence of terrorist-operated websites, the development of sophisticated moderation evasion tactics, increased decentralisation and enhanced dissemination techniques.
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