Overview

Crowdfunding was used for the “Def**d E**ope” campaign in 2017 by an organisation deemed a violent extremist group. In 2016, members of the group were alleged to have been involved in acts of violence, including an arson attack on an accommodation centre for asylum seekers. The group used the American crowdfunding website “XYZ”, which is considered a platform heavily used by certain violent extremists for illicit crowdfunding purposes. Around the time of the campaign, Europe was facing a so-called refugee crisis, where masses of migrants aiming to reach Europe were crossing the Mediterranean and being picked up at sea by rescue ships, who would then disembark them in European harbours where they would claim for asylum. To prevent these efforts, the “Def**d E**ope” campaign used crowdfunding to rent a ship that would pick up migrants before they could be rescued and bring them back to their harbours of embarkment, to prevent them from seeking asylum. The full extent of their activities is unknown but the Leader of the organisation is alleged to have had contact with the assailant responsible for the attack in Christchurch, New Zealand, and received donations valuing over EUR 1 500 from him.

Source: Case study extracted from the FATF publication "CROWDFUNDING FOR TERRORISM FINANCING"

Compliance Insight

Association with Extremist Groups: The organization linked to the campaign has connections to a violent extremist group, which suggests potential compliance risks. It is vital to establish strong processes for identifying associated risks before onboarding customers to your platform in order to effectively manage these risks.

High-Risk Campaign Objective: The "Def**d E**ope" campaign aims to intercept migrants at sea, preventing them from seeking asylum. This action, driven solely by the organization's agenda without government or international support, not only poses significant risks to vulnerable individuals or groups but also raises concerns about potential violations of human rights. Understanding the dynamic relationship between campaign objectives and client risk is crucial. Recognizing and addressing both visible, hidden, and residual risks associated with the client are essential for comprehensive risk management.

Related Party Concern: The leader of the organization has a history of negative news and controversies, particularly concerning terrorism. This raises serious questions about the organization's credibility and intentions. Conducting thorough reviews beyond the organizational level is important. Examining individuals associated with the organization, including trustees, leaders, directors, and beneficial owners, is necessary. Recognizing the close linkage between organizational risks and the individuals behind them is crucial for robust compliance management.