MONEY MOVEMENTS THROUGH HAWALA
In addition to the complex combination of individuals, companies, bureaucrats and governments that contribute funds to bin Laden, U.S. efforts to trace terrorists' money is further puzzled by the fact that many of the financial transactions are done in such a way that they leave nothing to be traced.
Al Qaeda relies heavily on hawala.
Brokers advance funds to depositors on a nod or a handshake, leaving no paper or electronic trails. Those involved often operate from a back of a store or, in remote areas. They may not even have an "office" from which they conduct transactions.
Brokers are known to use telephones to communicate, but the scarcity of other evidences make the helpfulness of tracking phone calls almost nil. Furthermore, hawala's generations of existence throughout South Asia and the Middle East make it difficult for foreign authorities to eradicate the mysterious system.
According to experts, hawalas have existed in the United States since the 1980s. The number of outlets in the country is unknown, but six or seven hawalas are operating in the Washington-Baltimore area alone.
Most clients are immigrants who use the system — which often transfer money faster than regular banks — for the lawful purpose of sending money to relatives and friends abroad.
Some users, however, exploit the system to launder money obtained or intended for illegal activity. Drug dealers have relied on hawala to send profits of drug sales from the United States, often to arms dealers abroad.
In a major step to uproot suspicious hawala networks, the Treasury Department on Nov. 7, 2001, launched domestic raids to shut down two hawalas, Al Barakaat and Al Taqwa, both believed to be funneling millions of dollars from the United States to abroad to support terrorist activities.
Al Barakaat is a financial, telecommunications and construction group headquartered in Dubai and operating largely out of Somalia.
It was founded in 1989 and operates in 40 countries around the world. It transfers about $140 million a year in remittances, 80 percent of which goes to Somalia, while the rest goes to Somali refugees living in other African countries. The Treasury Department said the raids on Nov. 7 resulted in the blocking of approximately $971,000 in Al Barakaat assets.
The Bush administration asked nine countries — Switzerland, Somalia, the Bahamas, Liechtenstein, Sweden, Canada, Austria, Italy and the United Arab Emirates — to crack down and freeze Al Barakaat and Al Taqwa assets.
In addition to the complex combination of individuals, companies, bureaucrats and governments that contribute funds to bin Laden, U.S. efforts to trace terrorists' money is further puzzled by the fact that many of the financial transactions are done in such a way that they leave nothing to be traced.
Al Qaeda relies heavily on hawala.
Brokers advance funds to depositors on a nod or a handshake, leaving no paper or electronic trails. Those involved often operate from a back of a store or, in remote areas. They may not even have an "office" from which they conduct transactions.
Brokers are known to use telephones to communicate, but the scarcity of other evidences make the helpfulness of tracking phone calls almost nil. Furthermore, hawala's generations of existence throughout South Asia and the Middle East make it difficult for foreign authorities to eradicate the mysterious system.
According to experts, hawalas have existed in the United States since the 1980s. The number of outlets in the country is unknown, but six or seven hawalas are operating in the Washington-Baltimore area alone.
Most clients are immigrants who use the system — which often transfer money faster than regular banks — for the lawful purpose of sending money to relatives and friends abroad.
Some users, however, exploit the system to launder money obtained or intended for illegal activity. Drug dealers have relied on hawala to send profits of drug sales from the United States, often to arms dealers abroad.
In a major step to uproot suspicious hawala networks, the Treasury Department on Nov. 7, 2001, launched domestic raids to shut down two hawalas, Al Barakaat and Al Taqwa, both believed to be funneling millions of dollars from the United States to abroad to support terrorist activities.
Al Barakaat is a financial, telecommunications and construction group headquartered in Dubai and operating largely out of Somalia.
It was founded in 1989 and operates in 40 countries around the world. It transfers about $140 million a year in remittances, 80 percent of which goes to Somalia, while the rest goes to Somali refugees living in other African countries. The Treasury Department said the raids on Nov. 7 resulted in the blocking of approximately $971,000 in Al Barakaat assets.
The Bush administration asked nine countries — Switzerland, Somalia, the Bahamas, Liechtenstein, Sweden, Canada, Austria, Italy and the United Arab Emirates — to crack down and freeze Al Barakaat and Al Taqwa assets.