Hawala System is Used for Terrorists and Illegals

MİTHAT YURDAKUL Ankara - According to the guide prepared by the Board, the hawala system can be used in the processes of collecting funds of terrorist organizations, transferring money to different geographies, delivering resources to members of the organization and meeting logistical needs. Hawala is also involved in the delivery of illegal gambling proceeds to organizers abroad.

According to the guide prepared by MASAK, confidentiality instruments such as cash, gold and crypto money are more preferred in the hawala system. The fact that these transfers are carried out outside the registered financial system or in a fragmented manner between different sectors complicates the monitoring and recording processes within the scope of combating money laundering, financing of terrorism and the financing of the proliferation of weapons of mass destruction, or ensures that they remain outside these controls.

crypto transfer

The Hawala system can be used in the processes of collecting funds for terrorist organizations, transferring money to different geographies, delivering resources to members of the organization and meeting logistical needs.

Hawala is also involved in the transfer of illegal gambling proceeds to organizers, managers and partners abroad.

A newly developing type of the system is “digital hawala”. Here is the traditional hawala relationship; It is supported by crypto assets, payment accounts, electronic money and other digital financial instruments.

Here, in addition to the transfer between digital wallets, money control can be transferred to another person by transferring access to private keys or recovery phrases.

suspicious transactions

There are some suspicious transactions that point to Hawala transactions. According to the guide, giving powers of attorney to the same person for the transactions of many individuals or companies that appear to be independent from each other, transferring a company that has been operating for a long time to individuals that appear to be unconnected; These signs include the use of family members, employees or other people as partners, managers or agents in different companies.

How does the system work?

Hawala system is generally known as a system that allows international money transfer through intermediaries. Accordingly, a person delivers money or movable assets to the intermediary in the country where he is located. This intermediary contacts another intermediary at the location of the recipient to whom the money will be sent. The second intermediary pays the specified amount to the buyer in his country. Then, settlement is made between the intermediaries through methods such as cash movements, gold and crypto assets. Import and export transactions can also be used in hawala settlement.