Overview

• Justice Senator Felor Badenberg plans to introduce the proposal at the Conference of State Justice Ministers to address gaps in the law on Hawala-Banking.
• Hawala-Banking enables quick, informal fund transfers outside regulated banks, creating opaque channels exploited for terrorism financing, money laundering and human trafficking.
• Current legislation lacks a legal basis to seize assets from these unlawful transactions, preventing authorities from confiscating proceeds of organized crime.
• Organized crime’s annual financial damage in Germany has risen to nearly €3 billion since 2014, with Berlin alone suffering about €57 million in 2023.
• Berlin’s asset forfeiture efforts yielded €4.9 million in 2023 and rose to €8.8 million in 2024, demonstrating growing success in reclaiming criminal funds.