Combatting the financing of hate groups

DOIhttps://doi.org/10.1108/JMLC-01-2022-0010
Published date10 March 2022
Date10 March 2022
Pages14-23
AuthorAustin Eggers,Jeffrey Hobbs
Combatting the nancing 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 nancialissue s within each.
Findings The authors nd that while legal concepts such as vicarious liability and respondeat superior
apply today just as they did before,new tools are needed to ght the new means of nancing the movement.
Research limitations/implications The main limitationof this study is the lack of quantitative data.
Because the alt-rightbecame 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
nancing 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 nanced 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 authorsknowledge, there are no papers in nance 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 nancing, 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
nancing 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 specically 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 nancial 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 classication 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
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1368-5201.htm

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