Combating terrorist financing in Switzerland in the light of current changes in Afghanistan
| Date | 12 May 2022 |
| Pages | 1231-1242 |
| DOI | https://doi.org/10.1108/JFC-04-2022-0079 |
| Published date | 12 May 2022 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial crime |
| Author | Fabian Teichmann,Sonia Ruxandra Boticiu |
Combating terrorist financing in
Switzerland in the light of current
changes in Afghanistan
Fabian Teichmann and Sonia Ruxandra Boticiu
Teichmann International (Schweiz) AG, St. Gallen, Switzerland
Abstract
Purpose –This paper aims to examine the current situation in Afghanistan after the rapid withdrawalof US
troops and the Taliban takeoverof the country, and how this has shed new light on the financing of terrorism.
Design/methodology/approach –Informal interviews were conducted with alleged perpetrators as
well as formal interviews with complianceexperts to further investigate the subject of terrorist financingin
the wake of the latest changes in Afghanistan and terrorist financing through hawala banking. The
intervieweeswere analysed through a qualitative analysis.
Findings –Based on the interviews,it was concluded that both illegal and legal sourcesof income could be
used by terrorist financiers.This study also shows why hawala representsa significant challenge for counter-
terroristfinancing policies.
Originality/value –While existing literaturesufficiently links parallel banking systems, such as hawala,
to terrorist financing, this study shows the implications for Switzerland’s perceived commitment against
financial crime in light of current changesin Afghanistan, and in addition, certain dogmatic weaknesses of
Article 260
quinquies
of the Swiss Penal Codeare critically analysed.
Keywords Afghanistan, Dogmatic challenges, Hawala system, Switzerland, Terrorist financing
Paper type Research paper
1. Introduction and problem
Following the announcement of the withdrawal of US troops from Afghanistan in
September 2021, the Taliban took control of the country. The previous government has
partially fled abroad. Contrary to Western expectations, the takeover of Afghanistan was
very quick, in just a few days, setting back many years of efforts to integrate Afghanistan
into the international community. This success, however, has presented the Taliban with a
major challenge of being allowed and thenhaving to govern. But a key part of governing is
funding the state budget.This means that to stay in power, the Taliban depend on essential
financial resources.
The first question that arises in this context is whether the Taliban can be considered
terrorists. If the answer is yes, then the question arises whether financing the Taliban or
persons close to them could constitutethe offence of financing terrorism within the meaning
of Article 260
quinquies
para. 1 of the Swiss Criminal Code (SCC). Ifone were to conclude that
the Taliban are not or never were terrorists, the fulfilment of the offence in Art. 260
quinquies
para. 1 CP is not clearly given. It is not easy to answer the question whether the Taliban
should be consideredterrorists, although it is quitecrucial. Many states consider the Taliban
to be terrorists. No country has so far recognized the Taliban as the new government of
Disclosure of potential conflicts of interest: The authors have no relevant financial or non-financial
interests to disclose.
Combating
terrorist
financing
1231
Journalof Financial Crime
Vol.30 No. 5, 2023
pp. 1231-1242
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-04-2022-0079
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1359-0790.htm
Get this document and AI-powered insights with a free trial of vLex and Vincent AI
Get Started for FreeStart Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
Start Your Free Trial of vLex and Vincent AI, Your Precision-Engineered Legal Assistant
-
Access comprehensive legal content with no limitations across vLex's unparalleled global legal database
-
Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength
-
Transform your legal research from hours to minutes with Vincent AI's intelligent search and analysis capabilities
-
Elevate your practice by focusing your expertise where it matters most while Vincent handles the heavy lifting
