Challenges of Combatting Extremism Financing in Germany

By Hans-Jakob Schindler

.The report outlines the current mechanisms set up in Germany to mitigate the risks emanating from the financing of terrorism, violent extremism, and non-violent extremism. These present three basic challenges for investigators: a restrictive legal basis and significant administrative limits on the ability of the security authorities to collect and analyze information concerning the financial operations of extremist entities; gaps in financial transparency and a wide distribution of relevant data; administrative and investigative silos as well as competing investigative priorities. The example of the Muslim Brotherhood-linked entities in Germany demonstrates that these challenges result in a lack of available information concerning the underlying financial structures of extremist entities. The report concludes with a range of policy recommendations to adjust the current legal and administrative mechanisms, increase financial transparency concerning associations and non-profit entities and establish more cooperation and coordination mechanisms.

berlin: Institute for Strategic, Political, Security and Economic Consultancy (ISPSW) 2023. 15p.