Indicators of hawala operations and criminal abuse

Abstract

Indicates the importance of the Informal Value Transfer System (IVTS) and hawala in particular as a means whereby immigrant workers can send remittances to their home countries, and the reasons for suspecting that these systems can be used to transfer funds which support terrorist activities. Lists the indicators of IVTS activity. Lists and discusses the possible indicators of criminal abuse: different charging, recording or collection methods for some clients, some large transactions not recorded, large sums transferred daily or from a single customer, unusual or unsound transactions, and transfers to traders or companies engaged in a very different kind of business or in illegal activities. Argues that a large daily turnover may be the most important indicator, since this can indicate that money is going out one door in order to come back through the other, which means money laundering.

Citation

Passas, N. (2004), "Indicators of hawala operations and criminal abuse", Journal of Money Laundering Control, Vol. 8 No. 2, pp. 168-172. https://doi.org/10.1108/13685200510621145