Combatting the financing of terrorism in Austria, Germany, Liechtenstein and Switzerland. A hopeless case?
| Pages | 782-795 |
| Published date | 07 October 2019 |
| DOI | https://doi.org/10.1108/JMLC-10-2017-0058 |
| Date | 07 October 2019 |
| Author | Fabian Maximilian Johannes Teichmann |
| Subject Matter | Financial risk/company failure,Financial compliance/regulation,Financial crime |
Combatting the financing of
terrorism in Austria, Germany,
Liechtenstein and Switzerland
A hopeless case?
Fabian Maximilian Johannes Teichmann
Teichmann International AG, St. Gallen, Switzerland
Abstract
Purpose –Whilst the existing literature focuses on developing prevention mechanisms for banks, this
paper aims to show how feasible it still is in Austria, Germany, Liechtenstein and Switzerland to finance
terrorismwithout getting detected.
Design/methodology/approach –A three-step research process, including both qualitative and
quantitative methods,was applied. The empirical findings are based upon qualitativecontent analysis of 15
informal interviews with illegal financial services providers and 15 formal interviews with compliance
expertsand law enforcementofficers.
Findings –During those interviews, concreteand specific methods of financing terrorism and limiting the
risks of facinga criminal prosecution were discussed. The interviewswere analyzed based upon a qualitative
content analysis. To assess the risk, whichcriminals, a quantitative survey among 181 compliance officers
was conductedto determine what leads to investigations.
Research limitations/implications –The findings are limited to the 30 interviewees’and181 survey
participants’perspective.
Practical implications –The practical implicationsinclude suggestions for providing law enforcement
and intelligenceagencies with new tools, such as remoteonline searches of electronic devices.
Originality/value –Whilst the empirical findings are based upon Austria, Germany, Liechtenstein and
Switzerland,the results could be applied on European level.
Keywords Literature, Drug trafficking, Financing, Terrorism financing, Terrorism, Criminal
Paper type Research paper
Introduction
The financing of terrorism has been combatted sincethe (1980s. Since the efforts before the
9/11 attacks were insufficient, they have been intensified throughout the past 15 years
(Pieth, 2002; 115 f.; Weintraub, 2002, p. 53). In addition to war efforts in Iraq and
Afghanistan, many nations focused on fightinga “financial war against terrorism”(Barrett,
2009,p.9;Davis, 2003, p. 269). The ultimategoal is to both eradicate terrorism and prosecute
terrorists (Betti, 2006, p. 1104). Fighting the financing of terrorism seems to be a rather
useful tool since terroristattacks are usually associated with costs and terroristshence need
money (Freeman, 2011,p.461;Gurulé, 2010,p.21).
However, combatting the financing of terrorism is a very complex and expensive task.
The costs are easily justified by confronting them with those of terrorist attacks, including
military reactionsand economic effects (Frey et al., 2007,p.1;Barrett,2009,p.8;Brownet al.,
2004, p. 861; Kaufmann et al.,1997, p. 83; Gläser and Shapiro, 2002, p. 205). Hence, it is
generally agreed that fightingthe financing of terrorism could be worth the effort. However,
since Europe has recently had to face a significant number of low cost terror attacks, the
JMLC
22,4
782
Journalof Money Laundering
Control
Vol.22 No. 4, 2019
pp. 782-795
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-10-2017-0058
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1368-5201.htm
To continue reading
Request your trial