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The (Hidden) Financial Flows of Terrorist and Organized Crime Organizations: A Literature Review and Some Preliminary Empirical Results

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  • Schneider, Friedrich

    (University of Linz)

Abstract

The financial means of international terror and organized crime organizations are analysed. First, some short remarks about the organization of international terror organizations are made. Second and in a much more detailed way a literature review is provided about the financing of terrorist and organized crime organizations, their sources and the various methods they use. Third, an attempt is made to estimate the financial means of terror organizations with the help of a latent estimation approach (MIMIC procedure). The figures show that Al Qaeda and other terror organizations have sufficient financial means. Fourth, some remarks are made about the negative effects of terror on the economy in highly developed countries and some strategies are presented to combat (the financing) of terrorism.

Suggested Citation

  • Schneider, Friedrich, 2010. "The (Hidden) Financial Flows of Terrorist and Organized Crime Organizations: A Literature Review and Some Preliminary Empirical Results," IZA Discussion Papers 4860, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4860
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. How much illicit crime money exists?
      by Ariel Goldring in Free Market Mojo on 2010-05-10 22:51:18
    2. The (Hidden) Financial Flows of Terrorist and Organized Crime Organizations
      by Ariel Goldring in Free Market Mojo on 2010-05-04 12:20:51

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    Cited by:

    1. Friedrich Schneider, 2013. "The Financial Flows of Transnational Crime and Tax Fraud in OECD Countries," Public Finance Review, , vol. 41(5), pages 677-707, September.
    2. Schneider, Friedrich, 2017. "Restricting or Abolishing Cash: An Effective Instrument for Fighting the Shadow Economy, Crime and Terrorism?," International Cash Conference 2017 – War on Cash: Is there a Future for Cash? 162914, Deutsche Bundesbank.
    3. Elu Juliet U. & Price Gregory N., 2012. "Remittances and the Financing of Terrorism In Sub-Saharan Africa: 1974 - 2006," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(1), pages 1-42, July.
    4. Friedrich Schneider, 2011. "The Financial Flows of the Transnational Crime: Some Preliminary Empirical Results," Economics of Security Working Paper Series 53, DIW Berlin, German Institute for Economic Research.
    5. Camelia Popa & Liviu Uzlău & Corina-Maria Ene, 2012. "The Financial Support And The Administrative Needs Of Terrorist Operations," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(14), pages 1-20.

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    More about this item

    Keywords

    organized crime; terrorist organizations; Hawala banking; money laundering; financial flows of terrorist organizations; financial flows of organized crime; kinds of terrorist financing;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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