Germany Expands Crackdown on Illegal Hawala Banking with Nationwide Raids

Authorities target non-financial businesses suspected of facilitating unregulated money transfers linked to organized crime and terrorism.

German law enforcement conducted coordinated raids across multiple states, led by the Landeskriminalamt Nordrhein-Westfalen, targeting illegal Hawala banking operations.
Investigators focused on non-financial businesses, including jewelers, second-hand shops, supermarkets, and late-night stores, suspected of facilitating unregulated money transfers.
€37,000 in cash was confiscated in Cologne, while anti-money laundering violations were identified in Hamburg, potentially resulting in significant fines.
Hawala banking, an informal money transfer system, is linked to money laundering, organized crime, and terrorist financing, including suspected ties to Hamas and Hezbollah.
The system, which operates outside formal financial channels, is estimated by the World Bank to transfer $200 billion annually, often in regions with limited banking infrastructure.