“Hawala” originates from the Arabic language meaning “transfer or remittance” (Terrorism and Financial Intelligence, 2009). It was developed in India before Westernized banking was introduced. Currently, hawala is a major remittance systems used worldwide (Jost and Sandhu, 2000). The hawala system has been used for hundreds of years to move money from one location to another (Terrorism and Financial Intelligence, 2009). Hawala is an efficient method for individuals that do not have the ability to exercise traditional banking. It is difficult to provide an accurate figure on the financial activities hawalas provide but it is estimated that there are tens of billions of dollars being transferred (Terrorism and Financial Intelligence, 2009). Pakistani officials estimate more than seven billion dollars flow into Pakistan annually. Hawalas are appealing to legitimate and illegitimate customers since it is efficient, anonymity, and the lack of a paper trail. Mainly individuals utilize hawalas to send money to their home country especially in areas that are outside the traditional financial sector (Terrorism and Financial Intelligence, 2009). Hawalas are occasionally referred to as “underground banking” and many operate legitimate businesses worldwide, however hawalas have been utilized as a means to launder money for illegal purposes such as terrorism.
The definition of hawala is “money transfer without money movement” (Jost and Sandhu, 2000). A key element that makes a hawala, different from other money remittance systems, is that it is based on trust. Each entity involved with the transactions trusts one another. Hawala relies on the use of connections like family relationships or affiliations (Jost and Sandhu, 2000). ...
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...ingh, (2000). The Hawala Alternative Remittance System and its Role in Money Laundering, Financial Crimes Enforcement Network, Retrieved from http://www.ustreas.gov/offices/enforcement/key-issues/hawala/FinCEN-Hawala-rpt.pdf.
Roth, John, Greensburg, Douglas, and Wille, Serena (2004). National Commission on Terrorist Attacks Upon the United States- Monograph on Terrorist Financing, National Commission of Terrorist Attacks, Retrieved from http://www.9-11commission.gov/staff_statements/911_TerrFin_Monograph.pdf.
Terrorism and Financial Intelligence (2009). Hawala & Alternative Remittance Systems. Department of Treasury, Retrieved from http://www.ustreas.gov/offices/enforcement/key-issues/hawala/.
Wood, John, (2007). Hawalas Exposed, The Terrorism Finance Blog. Retrieved from http://www.terrorfinance.org/the_terror_finance_blog/2007/06/in_stark_contra.html.
Davidson, Thomas. “Terrorism and Human Smuggling Rings in South and Central Asia.” Terrorism Monitor Volume: 3 Issue: 22. 17 Nov. 2005.
...oups. Ed. Stephen Currie. San Diego: Lucent Books, 2002. 69-83. Lucent Terrorism Library. Gale Virtual Reference Library. Web. 13 Mar. 2014.
National Commission on Terrorist Attacks upon the United States. Kean, T. H., & Hamilton, L.(2004). The 9/11 Commission report: Final report of the National Commission on Terrorist Attacks upon the United States. Washington, D.C.: National Commission on Terrorist Attacks upon the United States. Retrieved from Academic OneFile database.
Terrorist and criminal organization have internal problems that can be exploited by law enforcement and policy makers. Form author Nikos Passas we understand that terrorist organization have a lot of different methods of funding, including crime and charities. According to Passas the best way to combat this is to increase transparency and traceability in economic transactions, which was also concluded by author Jonas R. Want in his article discussing the regulation of Hawala. By doing this globally we can combat the financing of terrorist and criminal groups by having better knowledge of the movement of their money. According to author William Phil’s two thousand and seven peace, following the money is the most powerful tool in combating illegal financial transactions. The argument is supported by an Bichler, Bushes, and Malm’s article that states that understanding the market system in which criminal organizations operate is necessary when identifying the key players and mechanisms used. Overall, strengthening financial transaction transparency will help law enforcement combat both terrorist and criminal organization which will have great affects on both organizations
... Sept. 11th, 2001, terrorist attack on theWorld Trade Center and the unreliability of U.S. intelligence onWeapons of mass Destruction in Iraq have been a focus of intense scrutiny in the U.S. in 2004 particularly in the context of the 9/11 Commision , the continuing armed resistance against U.S. occupation of Iraq, and the widely perceived need for systematic review of the respective roles of the CIA, FBI and the Defense Intelligence Agency. On July 9th, 2004 the Senate report of Pre-war Intelligenceon Iraq of the Senate Intelligence Committe stated that the CIA described the danger presented by Weapons of Mass Destruction in Iraq in an unreasonable way, largely unsupported by the available intelligence. In a briefing held Sept 15th, 2001 George Tenet presented the Worldwide Attack Matrix, a "top-secret" document describing covert CIA anti-terror operations in 80 countries in Asia, the Middle East, and Africa. The actions, underway or being recommended, would range from "routine propaganda to lethal covert action in preparation for military attacks". The plans, if carried out, "would give the CIA the broadest and most lethal authority in its history".
Herman, E. & Sullivan, G. O.1989. The Terrorism Industry: The Experts and Institutions That Shape Our View of Terror. New York: Pantheon.
Scholars also identified human trafficking continues to capture the imagination of the global public (Goździak et at., 2015:5). One of the serious challenges in the world today is the issue of human trafficking. A 2005 report issued by the International Labor Organization estimated human trafficking to be the third most profitable illicit business after drug trafficking and arms dealing (Daoud,
estimated 7 billion dollars earned in shadow market. This money is used for drugs, gangs, mafia,
President’s Commission on Organised Crime 1984, Interim Report to the President and Attorney General, The Cash Connection: Organized Crime, Financial Institutions, and Money Laundering, viewed 28 March 2014, https://www.ncjrs.gov/pdffiles1/Digitization/166517NCJRS.pdf
Offshore banking is the action of having a bank account outside of the country of residence. Since its start, offshore banking has become a considerably lucrative business. Many of those who take part in offshore banking are looking for a secure location to place their income or seize the opportunity of having lower taxes. However, there are those who misuse the privilege of a foreign bank and use the business ventures for illegal actions rather than the original purpose of the dealings. Offshore banks seem to have an impartial acceptance of quite a few clients within the bank that create a lower standard of ethics in contrast to the ethics meant to be held—this includes those of a political position. Furthermore, this has the potential to be detrimental to the economy.
The cost of money remittance is very high in most of the parts of the world ranging from 3 % to as high as 10%. This is why more people depend on informal channels (through friends and family) to remit money or physically deliver the money. Traditionally, this has meant high fees, risky unregulated services, or long expensive trips carrying cash in an unsafe and unpredictable environment. It has been observed that M-PESA users needed to make fewer trips back home to deliver money and the transaction size also came down with frequent transfers. Unlike bank, the M-PESA service is accessible 24X7 and money can be sent anytime, anywhere. (Agrawal,
According to the United Nations Department of Public Information (2002), at a very simple level transnational criminal groups traffic in human beings, parti...
receiving money by means of computers in an easy, secure and fast way using an account-based system. This can be
The second part is the transport. This is where the police officers and border controls plays a major part. In an instance, “internationally trafficking requires the help with making sure the goods has reached their destination without not much of a hassle” (George, 2012). They take bribes that are
A cashless society will further improve the globalisation that characterise our present time. The computerised systems can be used to decrease the quantity of paper trail therefore substituting paper cash with cashless credits or electronic money transfers. However, in a cashless economy, this will change with certain crimes almost eradicated. It will also be faster to generate electronic payments than cash as Near Field Communications (NFC) chips make their way into more payments cards and mobile handsets as well providing protection not applicable to purchases made using cash. This technology is simple with low power wireless link evolved from radio-frequency identification (RFID) tech that can transfer small amounts of data between two devices identifying us and our bank account to a computer. Another benefit of drawing nearer to a cashless society is that other companies are providing pioneering cash-free solutions to the payment related problems we come across. For example, WisePay, a provider of e-payments services, is deploying technologies that ensure parents no longer have to worry about sending their children to school with cash to pay for meals, excursions and other fees that will eliminate the likelihood of being caught short for cash or children misplacing money. The Government also has valuable explanations why they may deem to turn away from cash. Due the main factor of printing and distributing cash, not to mention ensuring the economy is free from forgeries which are all costly endeavours estimating that the cost to society of using cash is between 0.5 and 1.5% of GDP annually. In addition, there are many technological innovations that propose there is a real enthusiasm for an alternative to cash with the upsurge...