A call for donations, a single click, and a small amount – and you feel like you have helped. However, sometimes the money doesn’t end up where you expect it to.
What is terrorist financing?
Terrorist financing is where someone consciously provides or collects money or other assets to support or enable terrorist activities.
The money goes to groups, organisations, or individuals, who plan or are directly involved in terrorist activities. Many terrorist attacks can be implemented with a very small amount of money.
Is this even an issue in Austria?
Yes, and a real one at that: A man was convicted in Vienna in 2025 who had been collecting and passing on donations for many years. Ultimately structures belonging to the terrorist organisation “Islamic State” (IS) benefited from them. The amounts involved ran to several million euro. Many donors believed that donations were providing humanitarian aid, and were unaware that some of the money went to IS. The man admitted in court that he was aware of this and was sentenced to four and a half years in prison.
What does this case show us?
This case demonstrated why terrorist financing is so difficult to detect. It often happens indirectly, e.g. through associations or structures apparently provided aid. A lot of small contributions add up to large amounts. It frequently begins with well-meaning donations from legitimate sources. External parties, especially trusting donors, often fail to notice misuse. Ultimately the decisive factor is whether or not the money is used to support the activities of a terrorist organisation.
How can you help to prevent terrorist financing?
Financial services providers are legally obliged to check the risks of terrorist financing. It may therefore be the case that you are asked to provide additional details when making a payment, such as the purpose or recipient of a payment. Such measures are in place to protect you and society against the money being misused for terrorist purposes.
You can also contribute. Check calls for donations critically, conduct some research about the organisations prior to donating, and only donate to establishments that are well-known and transparent. Be particularly carefully about calls for donations appearing on social media. Payments are increasingly being requested in crypto-assets. Such payments are difficult to trace and therefore require particular vigilance.
Why prevention is important
Terrorist financing is not a phenomenon in a far off land. It can begin in your everyday surroundings, and not be noticeable for a long time. Prevention is therefore even more important. It helps to prevent terrorist organisations from receiving money, or you from handing under money under false pretences.
The checks that financial entities are legally required to conduct make a valuable contribution. You can help to, by making the necessary information available when making payments and checking transparency when donating.
The Austrian Quality Seal for Donations (Spendengütesiegel)
The Austrian Quality Seal for Donations (OSGS) is used to high organisations that have been audited that meet clear standards for transparency and controls.
Other editions:
Find out more:
A-Z of Finance: www.fma.gv.at > A-Z of Finance
Instagram: Let’s talk about money
Podcast: listen here!
Terrorism:
severe violence, kidnapping/hostage-taking or attacks on infrastructure with an aim of intimidating people, to force authorities or governments to do something, or to destabilise or destroying fundamental structures.
Terrorist financing:
exists as soon as money is collected or transferred with the knowledge that it will benefit a terrorist organisation or its structures. A specific attack is not required to have been financed.