Money Wars: Hawala and Its Use to Finance Terrorism

Inhaltsverzeichnis (Table of Contents)

• Introduction
• Informal Money Transfer Systems (IMTS)
• Various Systems: An Overview
• The Scope of Informal Money Transfers
• The System of Hawala and Hundi
• An Example of a Hawala Remittance
• Bookkeeping and the Paper-Trail
• The Institutional Framework of Hawala
• Advantages of Hawala
• Hawala and the Financing of Terrorism
• Money Transfers: Terrorist's Wish List
• Hawala, Charities and 9/11
• The Charities as a Money Generator
• Legitimate Businesses as a Source of Money
• The Transfer of Funds for the 9/11 Attacks
• Future Terrorist Financing
• Policy Options in the Fight against Terror Finance
• The Regulations by the Unites States
• The Regulations by the UN Counter Terrorism Committee (CTC)
• The Regulations by the G-7 Financial Action Task Force (FATF)
• The Abu Dhabi Declaration on Hawala

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This book aims to explore the informal money transfer system known as hawala, particularly its potential role in financing terrorism. It investigates the characteristics of hawala, comparing it to other informal transfer systems and analyzing its efficiency and appeal to both legitimate users and terrorist organizations. The book also examines existing policies designed to curb the use of hawala for illicit activities and assesses their effectiveness.

• The nature and scope of informal money transfer systems (IMTS).
• A detailed analysis of the hawala system, including its mechanics and advantages.
• The relationship between hawala and terrorist financing.
• The effectiveness of current policies aimed at combating terrorist financing through hawala.
• An evaluation of the strengths and weaknesses of different regulatory approaches.

Zusammenfassung der Kapitel (Chapter Summaries)

Introduction: This chapter introduces the topic of hawala and its relevance in the context of the September 11th attacks, highlighting the need to understand this informal money transfer system and its potential for misuse in financing terrorism. It sets the stage for the subsequent chapters by outlining the book's objectives and scope.

Informal Money Transfer Systems (IMTS): This section provides a broad overview of various informal money transfer systems, comparing and contrasting their characteristics. It explores the scale of informal money transfers globally and assesses their significance in the overall financial landscape. This chapter lays the groundwork for a deeper understanding of hawala by placing it within the broader context of other similar systems.

The System of Hawala and Hundi: This chapter delves into the specifics of the hawala and hundi systems. It explains the mechanics of a typical transaction, including the role of trust and informal networks. The chapter analyzes the bookkeeping practices employed by hawala operators and examines the institutional framework that underpins the system. Finally, it highlights the key advantages that make hawala attractive to its users, both legitimate and illegitimate.

Hawala and the Financing of Terrorism: This chapter explores the nexus between hawala and terrorist financing. It examines the characteristics of an ideal money transfer system from a terrorist's perspective and analyzes how hawala meets these needs. It explores how terrorist organizations generate and move funds, including the roles of charities and legitimate businesses in facilitating these transactions. The chapter also considers potential future trends in terrorist financing.

Policy Options in the Fight against Terror Finance: This chapter evaluates the effectiveness of various policies designed to combat terrorist financing, focusing on initiatives implemented by the United States, the UN Counter Terrorism Committee (CTC), the G-7 Financial Action Task Force (FATF), and the Abu Dhabi Declaration on Hawala. It analyzes the strengths and weaknesses of these approaches in addressing the challenges posed by informal money transfer systems like hawala.

Schlüsselwörter (Keywords)

Hawala/Hundi, Terrorist Financing, Informal Money Transfer Systems (IMTS), Charities, Money Laundering, Counter-Terrorism, Financial Regulations, International Cooperation, Regulatory Effectiveness.

Frequently Asked Questions: Understanding Hawala and its Role in Terrorist Financing

What is the main topic of this book?

This book comprehensively explores informal money transfer systems (IMTS), specifically focusing on the hawala system and its potential for use in terrorist financing. It analyzes hawala's mechanics, advantages, and relationship with terrorism, examining existing counter-terrorism policies and their effectiveness.

What are the key themes addressed in the book?

The book delves into the nature and scope of IMTS, provides a detailed analysis of the hawala system, investigates the link between hawala and terrorist financing, evaluates the effectiveness of current counter-terrorism policies, and assesses the strengths and weaknesses of various regulatory approaches.

What types of informal money transfer systems are discussed?

The book provides an overview of various IMTS, comparing and contrasting their characteristics, but primarily focuses on the hawala and hundi systems, detailing their mechanisms and advantages.

How does the book explain the hawala system?

The book explains the mechanics of a typical hawala transaction, including the role of trust and informal networks. It analyzes the bookkeeping methods, the underlying institutional framework, and the advantages that make hawala attractive to both legitimate and illegitimate users.

What is the connection between hawala and terrorist financing?

The book examines how hawala's characteristics align with the needs of terrorist organizations for money transfer. It explores how terrorist groups generate and move funds, including the roles of charities and legitimate businesses, and discusses the use of hawala in past terrorist attacks, such as 9/11.

What policies are discussed in relation to combating terrorist financing through hawala?

The book assesses the effectiveness of policies implemented by the United States, the UN Counter Terrorism Committee (CTC), the G-7 Financial Action Task Force (FATF), and the Abu Dhabi Declaration on Hawala. It analyzes their strengths and weaknesses in tackling the challenges posed by informal money transfer systems like hawala.

What are the chapter summaries?

The book includes chapters on an introduction to hawala and its relevance to 9/11; an overview of IMTS; a detailed explanation of the hawala and hundi systems; an analysis of hawala's role in terrorist financing; and an evaluation of policies aimed at combating terrorist finance through hawala.

What are the key objectives of the book?

The book aims to explore hawala's potential role in financing terrorism, investigate its characteristics, compare it to other IMTS, analyze its efficiency and appeal to legitimate and illegitimate users, and examine the effectiveness of policies designed to curb its use for illicit activities.

What are the key words associated with this book?

Key words include: Hawala/Hundi, Terrorist Financing, Informal Money Transfer Systems (IMTS), Charities, Money Laundering, Counter-Terrorism, Financial Regulations, International Cooperation, and Regulatory Effectiveness.

What is the intended audience for this book?

While not explicitly stated, the book's comprehensive nature and academic approach suggest it is intended for researchers, students, and policymakers interested in financial crime, terrorism, and international finance.