The Challenges of Combatting Extremist Financing in Germany

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Terrorist and extremist organizations depend on finances to plan, prepare, and execute their activities. This is particularly the case when this relates to a hierarchically organized, geographically dispersed group that undertakes a range of activities and operations. Therefore, disruption of such an entity’s financial income streams concentrates on a bottleneck that presents a weakness which can exploited to hinder its activities and mitigate risks emanating from them.

This requires a particular set of legal instruments and administrative structures that enable transparency and early detection if funds are used for malign purposes. Despite this being an obvious truism, there is a regular issue of terrorism financing, as well as the financing of violent extremism and extremism, not being addressed as a priority, but rather a sideline of investigations focusing on individual culpability for violent acts or wider operational activities.

This report presents a range of policy recommendations to disrupt the financing of terrorism.

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