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Money Jihad

Combating terrorist financing

Hawala used to launder 20 million in England January 26,2014A British trial has revealed that criminal gangs have been laundering drug money by sending itthrough hawala and conventional banking channels from England to a hawala dealer overseasto send back to the gangsters in the U.K.

Despite the seriousness of the underlying crime, four of the men involved in the scheme havereceived light sentences ranging from three years in prison to supervised release with noprison time. The sentencing is reminiscent of that of New York hawala dealer Faisal Shahzad,who funded the failed Times Square bomber and got off with probation.

Meanwhile, law enforcement and financial regulators continue to make marginal or piecemealrecommendations for how to protect financial markets and the public from the inherent risk ofhawala transactions. One simple idea would be to impose tougher penalties and longersentences for hawala crimes.

From the Liverpool Echoon Jan. 17 (h/t Arun):

Gang who laundered more than 20m using

ancient Islamic system jailed

Two Liverpool men part of four man gang

Two Liverpool men who helped launder more than 20m of drugs money through bankswere spared prison.

The money is believed to have been laundered using legitimate bank accounts and an

ancient Islamic money lending system.

Kamran Butt and Instar Ahmed, from Greater Manchester and Liverpool men StevenMcKenna and Sean Moore were put under surveillance by police in two undercoveroperations.

http://www.liverpoolecho.co.uk/news/liverpool-news/liverpool-men-part-gang-who-6520846https://twitter.com/arun_hindu/status/424201183474241536https://twitter.com/arun_hindu/status/424201183474241536https://moneyjihad.wordpress.com/2011/12/06/talibans-long-island-hawala-dealer-gets-off-with-probation/https://moneyjihad.wordpress.com/http://www.liverpoolecho.co.uk/news/liverpool-news/liverpool-men-part-gang-who-6520846

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But officers found they were linked when Butt and Ahmed were seen depositing moneyinto the same bank accounts.

The money was transferred to the defendants, who were recruited by operatives in theMiddle East, using the Hawala system an informal Islamic way of lending money basedon honour agreements and thirdparty lenders.

A fifth man, named in court as Akhtar, was also heavily involved but was deported toPakistan in 2012 and has not been traced since.

Watched by undercover police, Akhtar and Ahmed were seen depositing huge sums ofmoney at banks in Chorlton, Longsight and Manchester city centre.

The two men would travel to branches of Lloyds, HSBC and Halifax together but thenpretend not to know each other once inside.

Ahmed also worked in partnership with others in the gang.

Manchester Crown Court heard how on Monday, August 22, 2011, police interceptedAhmed and McKenna and seized three rucksacks stuffed with more than 200,000 in cash.

On another occasion, Moore was seen with Butt in his Mercedes car.

Butt was stopped and a bag was seized, which was found to contain about 120,000 in cash.

His Stretford home was then searched and a further 10,000 was seized.Cash receipts invehicles traced to the four men showed they were paying in anywhere from 500 to 10,000

a time.All the money is believed to have come from criminal gangs, mainly through drugsales.

The criminal cash was given to a Hawala money lender abroad who then transferred themoney to a Hawala lender in the UK and gave them a password.

This password was then passed onto one of the defendants allowing them to collect thecash.

They then paid the money into bank accounts in Manchester which the criminals had access

to.

The court heard the four defendants were the bottom of the chain below controllers andthen coordinators, working as collectors to receive the money, deliver it and pay it intovarious bank accounts in the UK.

After being caught, all four defendants pleaded guilty Moore to two charges of moneylaundering and Butt, McKenna and Ahmed to one charge of money laundering each.

Butt, of Great Stone Road, Stretford, was believed to be behind 12m in laundered cash, and

was sentenced to three years and six months.

Ahmed, of Kelstern Square, Rusholme, who is believed to have laundered 10m alsoreceived a sentence of three years, six months.

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