Without a Trace

HAWALA - How the Muslim World Moves Money Without a Trace

In one of the first episodes of this season’s Jack Ryan, Jack goes into a dry cleaner in

Istanbul and hands the owner an envelope of cash. The next day, in London, he enters a

variety story, gives the owner a password and receives an envelope filled with the same amount of cash.

An article written in the Washington Post, over 23 years ago by Rajiv Ch and rasekaran

reported…

“Sitting cross-legged in an unfurnished office, Haji Janan moves money around the

world with only a ballpoint pen, a small notepad, a calculator and a telephone.

"New York, London, Frankfurt, Dubai," he boasted while sipping a small cup of milky tea. "I can get it there in a day."

All he needs, he said, is a wad of cash and a destination. He will phone up an affiliated

broker and ask him to provide the funds to the recipient, identified by a code number

provided by Janan.

Names and addresses are not used. Records are not kept for long. Questions are not

asked. There is no way, he said, for authorities to trace the transaction.

Janan, is part of a traditional money-transferring system known as hawala that shifts

billions of dollars across the globe every year.”

Hawala is an informal method of transferring money without any physical money actually

moving. It is described as a "money transfer without money movement." Another definition is simply "trust".

Hawala is used today as an alternative remittance channel that exists outside of traditional

banking systems. Transactions between hawala brokers are made without promissory

notes because the system is heavily based on trust and the balancing oF hawala brokers'

books.

Hawala originated in South Asia during the 8th century and is used throughout the world today, particularly in the Islamic community, as an alternative means of conducting funds

transfers. Unlike the conventional method of transferring money across borders through

bank wire transfers, money transfer in hawala is arranged through a network of "hawaladars" or hawala dealers.

Hawala dealers keep an informal journal to record all credit and debit transactions on their

accounts. Debt between hawala dealers can be settled in cash, property, or services. A

hawaladar who doesn't keep their end of the deal in the implied contractual system of hawala will be tagged as one who has lost their honor and will be excommunicated from the network or region.

The very features that make hawala an attractive avenue for legitimate patrons also make it attractive for illegitimate uses. Thus, hawala is frequently referred to as underground banking. This is because money launderers and terrorists take advantage of this system to transfer funds from one location to another.

In addition, corrupt politicians and the wealthy who would prefer to evade taxes use hawala to anonymize their wealth and activities. Cash generated from business transactions that aren't recorded can't be taxed.

Hawala is also used to fund terrorism, which makes it more difficult to stop terrorism. A large portion of discovering terrorist cells involves tracing the movement of money, as terrorist organizations are funded and need money to buy weapons and feed their people. Hawala transactions make this movement of money easy as there is no paper trail from the source of funds to the terrorist organization. - International Monetary Fund. "Hawala "

This week's headline.......

Britain, US Unveil New Sanctions Against "Hamas

Financiers" By AFP-Agence France Presse January 22, 2024

I continue to be amazed and I am truly shocked that analysts and experts and analysts become fixed on ideas and perpetuate these ideas with actions which prove to be

futile. The analysts, especially since 9/11, are caught in a high tech world and imagine things

that may not exist.

By sanctioning Hamas financiers and suspending their bank accounts these analysts believe

they are stunting the organizations financial capabilities. Hamas bank accounts are just a front. Their financial transactions go through the Hawala system as well as others outside the purview of the financial institutions.

Have the analysts asked themselves the question as to why Qatar physically brought Hamas

suitcases filled with $10 million every month as opposed to merely pressing the SEND button on a Qatari laptop?

Have they not heard the expression KISS? Keep It Simple Stupid.

Hamas uses the simple financial system of Hawala, but Hamas and the world’s greatest

criminals are also experts at high tech financial networks as well, namely crypto-currency.

A recent series on PBS reported that “terrorist groups, including Hamas, al Qaeda and ISIS are still finding ways to use cryptocurrency exchanges to raise and launder money and

evade detection.”

While the Gazan residents are suffering in this war, the leadership is sitting comfortably in their Qatar hotel suites.

Have you ever seen a Russian oligarch in a line at a soup kitchen after the US closed their bank accounts? Of course not. That’s because the money in the bank accounts was just for show, a front, a cut-out. Their money is in crypto-currency.

A simple thumb drive on a key chain can hold about $12 million in crypto-currency. Imagine

how much money is on a portable hard drive!

Hamas is not averse to using crypto-currency as well. They operate on both ends of the

financial spectrum, Hawala and crypto. The key to both systems is its simplicity, mobility and secrecy.

The international financial experts are looking for money where they think it exists but the

money and the road on which it travels is right under their nose.