Argentina’s Action Against Cryptocurrency Funding of Terrorism
Argentina’s Financial Information Unit (UIF) has taken a decisive action by freezing multiple cryptocurrency wallets connected to the funding of international terrorism. A significant focus of this initiative is a Syrian terrorist group known as Hay’et Tahrir Al-Sham (HTS).
Individuals Under Scrutiny
In addition, two individuals have come under scrutiny—one is a Russian citizen residing in Argentina, while the other has been identified by the U.S. Treasury and the Israeli National Bureau for Counter Terror Financing (NBCTF).
Role of the UIF
The UIF, which serves as the country’s anti-money laundering and terrorism financing authority, has uncovered activities involving local cryptocurrency exchanges that may be facilitating financial transactions to support HTS, which has historical links to Al Qaeda.
In an important update, it’s worth noting that although the U.S. Department of State has recently revoked HTS’s designation as a Foreign Terrorist Organization (FTO), numerous international counter-terrorism bodies continue to regard them as a terrorist entity.
Proactive Measures and Judicial Oversight
While there are currently no indications that these funds were intended for use in terrorist actions within Argentina itself, the Financial Action Task Force (FATF) guidelines obligate Argentina to respond proactively to prevent any potential financing of global terrorism.
This initiative was prompted by tips received from both local and international informants, leading the UIF to seek the validation of their findings from a federal judge. Consequently, the judge approved the administrative freeze on the implicated cryptocurrency funds. Initial steps appear to include a blanket freeze of all affected wallets, with assurances that further actions will intensify under judicial oversight.
Potential Links to Other Illicit Groups
Interestingly, connections have been hinted at between these transactions and potentially other illicit groups, although further details on these links have not yet been disclosed.
