Combatting the financing of hate groups

Abstract

Purpose

This study aims to make the reader aware of recent changes in the white supremacist movement and how such changes have altered the ways in which the movement can be combatted.

Design/methodology/approach

The authors study the movement in two periods: from 1970 to 2005 and from 2006 onward. The authors contrast the two periods and discuss the legal and financial issues within each.

Findings

The authors find that while legal concepts such as vicarious liability and respondeat superior apply today just as they did before, new tools are needed to fight the new means of financing the movement.

Research limitations/implications

The main limitation of this study is the lack of quantitative data. Because the “alt-right” became popular around 2015, there has not been enough time for the construction of detailed data sets.

Practical implications

While many law papers have explored the white supremacist movement, the financing side has gone under-analyzed in scholarly research. This is important in light of the rise of the internet, online payment processors, cryptocurrencies and remote organizing and fundraising.

Social implications

The 2017 Charlottesville rally was organized and financed via podcasts, online forums, encrypted chats and anonymous payments. Since then, the movement has mostly gone underground and has become more violent and radical as many members have come to believe that marches and politics do not help them.

Originality/value

To the best of the authors’ knowledge, there are no papers in finance that deal extensively with this topic. The authors believe that the severity of the issue and the importance of its funding make this study a valuable source of information. The recent changes occurring within the movement are likely to become even more critical to its success or failure in the future.

Citation

Eggers, A. and Hobbs, J. (2023), "Combatting the financing of hate groups", Journal of Money Laundering Control, Vol. 26 No. 1, pp. 14-23. https://doi.org/10.1108/JMLC-01-2022-0010