Donation-based crowdfunding the future of terrorist financing or a method counteracted ex-ante by European authorities
Abstract
Purpose
This study aims to analyse the adequacy of current and proposed European legislative measures for the mitigation and prevention of the use of donation-based crowdfunding to enable terrorist-related financing.
Design/methodology/approach
This study examines current and proposed European legislative and academic literature. To provide analysis on the current terrorist financing risks posed by donation-based crowdfunding.
Findings
The activity of European donation-based financing is not in theory completely removed from AML/CFT prevention, mitigation and reporting standards. European credit institutions and payment service providers are required to implement AML/CFT internal controls that target their entire customer base, which includes situations whereby an individual and/or individuals elect to engage in donation-based funds transfer. Current European crowdfunding and proposed crowdfunding AML/CFT standards target investment and consumer credit provision by credit and financial institutions and credit and mortgage intermediaries. Donation-based terrorist financing will likely remain a consideration for subversive groups and lone wolf individuals seeking integrated financing. European credit institutions and payment service providers will be required to cooperate both internally and externally on a national and transnational basis to prevent the materialisation of donation-based financing risks, ex-ante.
Originality/value
A desktop review composed by the author.
Keywords
Acknowledgements
Conflict of interest and data availability statement agreement: Daniel Cookman agree to abide by and conform with the terms and conditions of the Journal of Money Laundering Control’s conflict of interest and data availability policies and statements and to policies relating as they pertain to the submission of the journal article titled.
Citation
Cookman, D. (2024), "Donation-based crowdfunding the future of terrorist financing or a method counteracted ex-ante by European authorities", Journal of Money Laundering Control, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JMLC-12-2023-0199
Publisher
:Emerald Publishing Limited
Copyright © 2024, Emerald Publishing Limited