Hawala and Money Laundering in Relation to Drug Crime

• In Event: New Directions in Transnational and Organized Crime Research

Abstract

Hawaladars, like employees from regular financial institutions, can come into contact with criminal money. The important question is, how do they deal with those situations? Regular financial institutions have introduced all manners of due diligence to lessen such risks and comply with anti-money laundering regulations. But it is less clear what precautions hawaladars have taken. Based on police files, the presenter discusses seven ‘red flags' that hawaladars themselves could have used and the implications for formal financial supervision of the hawala sector.

Author

• Melvin Soudijn, Dutch National Police