Current trends in terrorist financing

• Published in: Journal of financial regulation and compliance Vol. 30; no. 1; pp. 107 - 125
• Main Author: Teichmann, Fabian Maximilian
• Format: Journal Article
• Language: English
• 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
• ISSN: 1358-1988; 1740-0279
• DOI: 10.1108/JFRC-03-2021-0022

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.