Paris | The Financial Action Task Force (FATF), the global watchdog against money laundering and terrorist financing, has warned that terrorist organisations are increasingly using social media, instant messaging applications, livestreaming platforms and cryptocurrencies to raise and transfer funds, highlighting the rapidly evolving digital nature of terror financing.
In its latest report, “Detecting and Disrupting Terrorist Financing Activity Through Social Media, Instant Messaging Applications and Streaming Platforms (SMSPs),” FATF said platforms that were once primarily used for communication and propaganda have now evolved into sophisticated financial ecosystems. The integration of payment systems, virtual assets, creator monetisation features and cross-border financial services has created new opportunities for terrorist networks to collect and move funds.
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According to the report, terrorist organisations are increasingly relying on fraudulent humanitarian crowdfunding campaigns, creator economy features, cryptocurrency donations, livestreaming and digital tipping functions to solicit financial support from individuals across the world. FATF warned that these methods make fundraising faster, broader and more difficult for authorities to detect.
The report further stated that terrorist financiers are using QR codes, frequently changing cryptocurrency wallets, encrypted messaging applications, disappearing messages and coded language to evade law enforcement agencies and financial intelligence units. In certain cases, commercial entities are also being misused to conceal or facilitate terrorist financing activities.
FATF noted that the rapid adoption of artificial intelligence (AI), decentralised finance (DeFi), virtual assets, encrypted communications and embedded payment technologies has made terrorist financing significantly more sophisticated. The watchdog stressed that governments, financial institutions and technology companies must strengthen collaboration to counter these evolving threats effectively.
The report also highlighted serious gaps in global preparedness. According to FATF, fewer than 30 percent of reporting jurisdictions currently include terrorist financing risks associated with social media, messaging applications and streaming platforms in their national risk assessments, leaving significant vulnerabilities in the international counter-terrorism framework.
FATF President Elisa de Anda Madrazo said terrorist financing has entered the digital era, enabling extremist groups to reach billions of people with unprecedented ease. She emphasised that no single country can effectively tackle this growing threat alone and called for closer international cooperation to prevent the misuse of digital platforms for financing terrorism.
The report was prepared with contributions from leading technology companies and specialised research organisations to better understand emerging digital vulnerabilities. FATF recommended stronger public-private partnerships, enhanced information sharing among agencies, improved national risk assessments, and greater integration of financial and digital intelligence systems.
FATF also clarified that although social media, messaging and streaming platforms themselves are not directly covered under its anti-money laundering standards, financial transactions conducted through these platforms may still fall within the scope of existing international regulations. It urged countries to strengthen enforcement mechanisms as terrorist financing increasingly shifts into the digital ecosystem.
