What is “Hawala” the illegal system that brought dirty money from Switzerland to Albania

What is “Hawala” the illegal system that brought dirty money from Switzerland to Albania?

SPAK announced this Sunday that it had broken up a network of transferring and introducing dirty money from Switzerland into our country. 3 people have been arrested, in Albania and one in Switzerland. According to SPAK, they were using the “Hawala” scheme to transfer money.

It is an illegal money transfer system, which nowadays is commonly used by criminal persons to avoid leaving a trace in the remittances of financial sums of suspicious origin.

But what is this system?

Hawala is an informal method of money transfer. This system is considered a “money transfer without cash movement” and essentially operates on the basis of mutual trust between the parties involved.

This mechanism, which originated in South Asia, is still used today around the world, especially in Islamic communities, as an alternative to the traditional banking system.

Instead of international bank transfers, money is sent through a special network called “hawaladars” or “hawala” traders.

“The money senders delivered the money of criminal origin to the associates of the criminal group residing in Switzerland, informing them of the name of the person who was the recipient of the sums of money in Tirana.”

The associates of the criminal group residing in Switzerland, as soon as the money was deposited, notified their associates in Tirana… of the amount of money deposited and the name of the person who was the recipient of the money in Tirana.

Then in Tirana, the individuals delivered the same amount of money that had been deposited with their associates in Switzerland, to the individuals who were the recipients of the amounts in Tirana. it was stated in the SPAK announcement.

These traders do not use formal documentation, everything is based on an illegal but well-organized system of recording transactions, where every credit or debit is noted in a concise and discreet manner. Debts can be repaid through money, property, or even services.

Those who do not respect the implicit agreements are considered disloyal and are expelled from the network, a punishment that is worth more than any legal punishment for them.

For many migrants sending money back to their home countries, hawala is often the most practical option. In countries where banking is expensive or inaccessible, hawala helps move funds quickly, cheaply, and without bureaucracy. In some cases, merchants even waive fees for migrants, in order to encourage them to use this informal channel.

This system is especially important for people who do not have identification documents or access to a bank account. For them, it is the only way to send money abroad. /LAPSI.al