Informal Value Transfer System as Terrorism Financing and Money Laundering Tool: The Case of Hawala

Article Information
Journal: Business and Economics Research Journal
Title of Article: Informal Value Transfer System as Terrorism Financing and Money Laundering Tool: The Case of Hawala
Author(s): Ali Yurdakul
Volume: 12
Number: 4
Year: 2021
Page: xx-xx
ISSN: 2619-9491
DOI Number: 10.20409/berj.2021.348
Abstract
Terrorism has grown tremendously in the last few decades and has become a serious threat to international peace and security. Determining the financial transactions of criminal and terrorist organizations is an important activity for the fight against terrorism. The study aims to clarify the use of informal value transfer systems and the measures that can be taken in the financing of terrorism and money laundering. The findings of this study are as follows; Following the terrorist events of September 11, 2001, informal value transfer systems came under pressure to regulate and control. Hawala, an alternative traditional remittance method often used by immigrant families to transfer money, has been found to be vulnerable to abuse by criminal organizations and terrorist groups. While making arrangements for the informal value transfer system, it is important that the service provision to those who use these systems is maintained without interruption. For this reason, it has been concluded that it is important to synchronize economic factors, development, prevention of crime and terrorist use in regulations for informal value transfer systems.

Keywords: Terrorism, Terrorism Financing, Money Laundering, Hawala, FATF, Control of Financial Flows

JEL Classification: E26, H56, O17, F55

[dm][/dm]

Halfera