EU Determines Crowdfunding Offers A Minimal Terrorist Threat

The European Commission released in July an assessment of the risks of money laundering and terrorist financing for crowdfunding.

The report states that the threat from crowdfunding “is based on the anonymity offered by the online presence and the worldwide reach of these platforms. ”

Examples given were that a criminal gang sets up a fake crowdfunding campaign to scam unwitting donors or that tainted money can be washed through a crowdfunding campaign.

It found that the European Union’s anti-money laundering rules don’t apply to crowdfunding.

But further notes that the utility of crowdfunding does not really lend itself to a major terrorist financing threat.


About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
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