Criminalizing the Financing of Terrorism

Abstract

This article begins with the widespread expectation that ‘following the money trail’ would be an effective means of hampering terrorist activity. So far, however, that effectiveness has been less than certain, and financial services providers argue that, at most, they would be able to check names against lists (they are adamant that the risk-based approach does not apply here). Legal difficulties deepen the factual problems: bold statements in international Conventions that terrorist activities are not political crimes, do not really solve the fundamental dilemma that a distinction needs to be made between freedom fighters and terrorists if combatants are merely aiming at the restoration of the democratic order. On a more practical level, international organizations (namely the United Nations and the Financial Action Task Force on Money Laundering) have created a system of mechanisms to freeze suspected funds of terrorism. So far, the procedures for freezing and de-freezing do not meet the generally accepted standards of a fair hearing (as defined by the International Covenant on Civil and Political Rights or the European Convention on Human Rights). The author concludes that the current way of dealing with the issue of financing of terrorism is far from convincing.