Terrorism financing researchers and risk practitioners focus on the funding of terrorist acts and terrorist organisations. Recently, with the emergence of lone actor and small cell attacks, this has meant analysing selffunded terrorist activities.
New funding typologies have emerged and evolved, along with new payment technologies such as cryptocurrencies or crowdfunding, for instance.
Counterterrorism financing (CTF) has targeted funds sent from Europe to foreign fighters in conflict areas such as Syria and Iraq, ensuring that abuse of the financial system in support of jihadi terrorism is identified and targeted.
An element that has not been sufficiently explored, however, is that of malign influence by hostile states and the way it is
exerted. There is growing concern that foreign governments, through the funding of domestic organisations, encourage and enable subversion. This creates a fertile ground for radicalisation, or indeed, sympathy among the local population.
Radicalisation is a cognitive process that initially requires ideological engagement and may result in violent extremism or terrorism. By exerting the right influence, agitators are subsequently able to disseminate hateful, anti-pluralistic ideas among local communities. It can become a gateway to radicalisation, extremism, violent extremism and finally, terrorism. Such influence can lead to the delegitimisation of democratic principles and institutions. It can affect Europe’s
pluralistic society and democratic order.