A major investigation by public service broadcasters and the European Broadcasting Union has revealed how hundreds of millions of euros from Europe are illegally funneled to criminal organisations. The transfers are made through the hawala financial system. One of the money transfers uncovered was made from Brussels to Islamic State militants.
Belgium. An undercover journalist meets a hawala broker. He wants to send €250 to Gaza.
“Will the money arrive today?”
“It’s already there.”
The lightning-fast transaction was confirmed by an undercover journalist in Gaza, who received the money.
There are likely thousands of brokers operating across Europe.
Peter Houtenthuys, prosecutor: “They are almost everywhere. If you are part of a criminal network and ask, ‘I need a broker. I need to transfer money,’ someone will recommend one to you. It’s like renovating your home and needing tradespeople – you ask people you know and someone recommends one.”
With a hawala transfer, the money changes hands but never crosses borders. The client who sends the money receives a code from the broker. At the other end, another broker pays the amount to the recipient in exchange for the code. Then the brokers settle accounts among themselves.
Under hawala, money changes hands but never crosses borders. The customer handing over the money receives a code from the broker. At the other end, another broker pays the recipient in exchange for the code. The brokers then settle up all their transactions between themselves at a later date.
Lucy Miles, head of Europol’s Financial Crime Unit: “Hawala has existed for centuries. The system is based on trust. In some cases, hawala is used for legitimate purposes. But criminal organisations have built a parallel financial system.”
A former broker confirms this claim. In the journalistic investigation, he is referred to as Frank. He was an undercover agent in the system in a small town near Rotterdam. In just an hour and a half, 5–6 brokers arrived and transferred over 1 million euros.
Frank: "What I found out later is that it's not just about money. It's about the financing of terror. It's about drug trafficking. It's about prostitution and all sorts of other crap, to put it nicely."
The brokers communicate exclusively through encrypted chats. The largest group chat uncovered so far is “Traders of Greater Europe”. It had around 530 members on WhatsApp and was used to transfer money to criminal organisations around the world. The minimum amount that could be transferred was €5,000.
Fernando Sanz Ayuso, chief inspector with Spain’s National Police: “The broker is not interested in the crime. He knows that his clients are involved, but what he does is arrange the deal and take his percentage.”
For refugees, hawala operates as a “life insurance policy”.
Gerald Tatzgern, head of Austria’s anti-human trafficking unit: “While they are, for example, in Afghanistan, they pay the smuggler. At every stage of the journey, the trafficker has to prove that the refugee is still alive.”
More and more police officers believe that the most effective way to dismantle criminal networks is to target the brokers. According to the investigative journalists, however, progress in tackling illegal financial transfers remains slow.
Чуй новините
Подкаст
