Current trends in terrorist financing

Purpose The purpose of this paper is to illustrate how intelligent terrorist financiers avoid detection when acquiring and subsequently transferring financial assets to finance terrorism. Particular emphasis is placed on cryptocurrency. Design/methodology/approach A qualitative content analysis of 3...

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Bibliographic Details
Published inJournal of financial regulation and compliance Vol. 30; no. 1; pp. 107 - 125
Main Author Teichmann, Fabian Maximilian
Format Journal Article
LanguageEnglish
Published London Emerald Publishing Limited 13.01.2022
Emerald Group Publishing Limited
Subjects
Cost control
Criminal liability
Criminalization
Digital currencies
Funding
International crime
Law enforcement
Literature reviews
Money laundering
Political violence
Regulation of financial institutions
September 11 terrorist attacks-2001
Terrorism financing
Violence
United States > US
Syria
Compliance and regulation
Cryptocurrency
Terrorism
Compliance
Terrorist financing
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Summary:Purpose The purpose of this paper is to illustrate how intelligent terrorist financiers avoid detection when acquiring and subsequently transferring financial assets to finance terrorism. Particular emphasis is placed on cryptocurrency. Design/methodology/approach A qualitative content analysis of 30 semi-standardised expert interviews with both criminals and prevention experts led to the identification of means for the circumvention of current combat the financing of terrorism (CFT) measures with a focus on cryptocurrency. Findings The findings illustrate, for the benefit of law enforcement agencies, investigators, regulating authorities and legislators, the specific low-risk methods that terrorist financiers use to generate and transfer assets. These findings help to develop more effective prevention methods. Research limitations/implications Qualitative findings from the analysis of semi-standardised interviews are limited to the 30 interviewees’ perspectives. Practical implications Identification of gaps in existing CFT mechanisms provides compliance officers, law enforcement agencies and legislators with valuable insights into how criminals operate. Originality/value The existing literature focuses on organisations that combat terrorist financing and the improvement of CFT measures. This article outlines how terrorist financiers avoid detection. Both preventative and criminal perspectives are considered.
ISSN:1358-1988
1740-0279
DOI:10.1108/JFRC-03-2021-0022