Combatting the financing of terrorism in Austria, Germany, Liechtenstein and Switzerland: A hopeless case?

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 terrorism without getting detected.

Design/methodology/approach

A three-step research process, including both qualitative and quantitative methods, was applied. The empirical findings are based upon qualitative content analysis of 15 informal interviews with illegal financial services providers and 15 formal interviews with compliance experts and law enforcement officers.

Findings

During those interviews, concrete and specific methods of financing terrorism and limiting the risks of facing a criminal prosecution were discussed. The interviews were analyzed based upon a qualitative content analysis. To assess the risk, which criminals, a quantitative survey among 181 compliance officers was conducted to determine what leads to investigations.

Research limitations/implications

The findings are limited to the 30 interviewees’ and 181 survey participants’ perspective.

Practical implications

The practical implications include suggestions for providing law enforcement and intelligence agencies with new tools, such as remote online 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.

Citation

Teichmann, F.M.J. (2019), "Combatting the financing of terrorism in Austria, Germany, Liechtenstein and Switzerland: A hopeless case?", Journal of Money Laundering Control, Vol. 22 No. 4, pp. 782-795. https://doi.org/10.1108/JMLC-10-2017-0058