7. HAWALA-WHAT “ HAWALA-BANKING” DESCRIPTION Hawala is an informal money transfer system and a basic means of transferring sums of money through the whole world in a safe and paperless way The Eastern Western Union
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9. The UK-Nigeria Remittance Corridor The U.S.-Guatemala Remittance Corridor The Netherlands-Morocco Remittance Corridor The Netherlands-Suriname Remittance Corridor The Germany-Serbia Remittance Corridor The Italy-Albania Remittance Corridor The Canada-Vietnam Remittance Corridor The U.S.-Mexico Remittance Corridor TYPOLOGY HAWALA-WHAT CORRIDORS CORRIDORS Underground financial centra F.i. Karachi, Dubai MTO MTO beneficiary sender … and vice versa sender sender beneficiary beneficiary Phone-house, fax, gsm “ call houses”, fax, gsm
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17. Scheme? SENDER A € 100 HAWALADAR A’ BELGIUM CASH COURIER and/or BALANCING HAWALADAR B’ HOME-LAND BENEFICIARY B € 90 owner transfer services CASH COURIER COURIER COURIER telephone, fax, e-mail, … other “hawaladar” € 95 COURIER COURIER
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19. TYPOLOGY HAWALA-HOW family/sender beneficiary/family Paperless Difficult detection Based on trust Posibble in both ways Transaction Code (TA) $ $ TA Code spoken exchange (sum, transaction code usually no money) Hawaladar Hawaladar Example of a “one way” transaction HOW DOES IT WORK?
28. Characteristics of “terrorism financing” Transactions by terrorists are usually unique and with large amounts of money (aid by states, donations from sympathisants, legal economic activities and criminal activities) and the use of underground networks which play an essential role in their activities This in contrast with other payments by workers-migrants which happen more often to family and in smaller amounts TYPOLOGY HAWALA-HOW
29. TYPOLOGIE HAWALA Hawala is an informal money transfer system, a means of sending money through the whole world in a safe and paperless manner Islamic Banking carried out as described in the Koran, is used for legal money collection and payment. This is particularly in the case of ZAKAT FUNDS Characteristics of “terrorism financing”
