Combatting the financing of hate groups
| DOI | https://doi.org/10.1108/JMLC-01-2022-0010 |
| Published date | 10 March 2022 |
| Date | 10 March 2022 |
| Pages | 14-23 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Austin Eggers,Jeffrey Hobbs |
Combatting the financing of
hate groups
Austin Eggers and Jeffrey Hobbs
Department of Finance, Banking and Insurance at Appalachian State University,
Boone, North Carolina, USA
Abstract
Purpose –This study aims to make the readeraware of recent changes in the white supremacist movement
and how such changeshave altered the ways in which the movement can be combatted.
Design/methodology/approach –The authors study the movement in two periods: from 1970 to 2005 and
from 2006 onward. The authors contrast the two periods and discuss the legal and financialissue s within each.
Findings –The authors find that while legal concepts such as vicarious liability and respondeat superior
apply today just as they did before,new tools are needed to fight the new means of financing the movement.
Research limitations/implications –The main limitationof this study is the lack of quantitative data.
Because the “alt-right”became populararound 2015, there has not been enough time for the construction of
detaileddata sets.
Practical implications –While many law papers have explored the white supremacist movement,the
financing side has gone under-analyzed in scholarly research. This is important in light of the rise of the
internet,online payment processors, cryptocurrenciesand remote organizing and fundraising.
Social implications –The 2017 Charlottesville rally was organized and financed via podcasts, online
forums, encrypted chatsand anonymous payments. Since then, the movement has mostly gone underground
and has become more violentand radical as many members have come to believe that marches and politics do
not help them.
Originality/value –To the best of the authors’knowledge, there are no papers in finance that deal
extensivelywith this topic. The authors believe that the severityof the issue and the importance of its funding
make this study a valuable source of information. The recent changes occurring within the movement are
likely to becomeeven more critical to its success or failure in the future.
Keywords Hate group financing, White supremacy, Cryptocurrency, Law
Paper type Research paper
1. Introduction
With the rise of the internet, social media and cryptocurrencies over the past 25years, the
financing of hate groups has changed dramatically. These changes introduce a new set of
legal and ethical issues of both a philosophical and logistical nature. This study examines
white supremacist groups specifically and contrasts older groups with newer groups,
websites and institutions that generally identify as the “alt-right.”We discuss how civil
courts and social media restrictions have been used as effective tools to combat the
proliferation of hate group ideology and financial support, and how recent developments in
hate group funding maycause future litigation to differ from past litigation.We conclude by
examining how legal authorities and national governments can continue using legal
channels and public policy to combat the ideology of these groups and the challengesthese
JEL classification –K4, Z1
JMLC
26,1
14
Journalof Money Laundering
Control
Vol.26 No. 1, 2023
pp. 14-23
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-01-2022-0010
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