A WhatsApp group chat, which was used to scam users by arranging hundreds of millions of euros in cash transfers associated with organised crime and extremism, as per probe by the BBC and the European Broadcasting Union (EBU).
The 532-member group, called “Traders of Greater Europe,” contained over 82,000 messages exchanged between February and December 2022.
Members used the chat to organise cross-border cash payments, such as transfers to cities like Birmingham, Liverpool, and London.
Cash transfers associated with Islamic state
Investigators discovered evidence that money arranged via the network was sent from Brussels to members of the Islamic State (IS) in Syria.
Belgian authorities later detained nearly six money launderers in connection with the network such as Brussels leader, Abu Adam.
The probe kicked off as a case into terrorist financing; however, it expanded after authorities uncovered evidence of a broader cash-transfer operation.
How the Hawala system works
The network depended on hawala, an informal money-transfer system, enabling funds to transfer all across the globe without any traditional electronic transactions.
Under the system, one broker receives cash from a sender while another broker provides an equivalent amount, keeping their commission aside, to the recipient elsewhere. Brokers later settle their accounts between themselves.
Hawala is also widely used for legitimate purposes, especially by people who used to send money to relatives in countries with limited banking access.
However, authorities flagged the risks associated with the system, as it can be easily used to exploit the system because transactions can operate outside traditional banking channels.
Broader criminal connections
The EBU investigation discovered evidence of hawala networks being used in drug trafficking, people smuggling and human trafficking across Europe.
Moreover, authorities unveiled hawala operations allegedly linked to migrant smuggling and violence.
Europal officials called hawala as a major channel for organised crime money laundering.
The probe underscores how informal financial networks and encrypted messaging platforms can facilitate bigger cash transfers with limited oversight.
