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

Friedrich Schneider ()

No 4860, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: organized crime; terrorist organizations; Hawala banking; money laundering; financial flows of terrorist organizations; financial flows of organized crime; kinds of terrorist financing (search for similar items in EconPapers)
JEL-codes: H56 K42 O17 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2010-03
New Economics Papers: this item is included in nep-law
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Citations: View citations in EconPapers (6)

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