All NewsEducationTVBrokers
Equities & FundsCrypto & Digital AssetsAI & TechnologyBusiness & CorporateUS Politics & PolicyGeopolitics & Global RiskMacro, Rates & FXCommodities & EnergyEuropean Politics & MarketsAsia-PacificReal Estate & Property
All NewsHome
← Back to Geopolitics & Global Risk

WhatsApp group used for illicit cash transfers totaling hundreds of millions of euros

Created at 30 Aug · 5:11 AM1 source↑ Market-relevant
IN SHORT

A WhatsApp group chat named 'Traders of Greater Europe' facilitated hundreds of millions of euros in illicit cash transfers globally, funding organized crime and extremism, including payments to Islamic State militants. The investigation uncovered the use of the hawala system for these transactions, bypassing traditional banking channels.

Key Numbers

532members in the WhatsApp group chat
82,000messages sent between late February and December 2022
€5,000minimum transaction value for the group chat
€350,000amount lost by a courier tortured in Vienna
18years in prison for one Syrian brother
8years in prison for another Syrian brother
100,000people transported into Europe by one dismantled ring

Who's Involved

Vincent Guerra
Belgian investigating magistrate who uncovered the WhatsApp group chat
Abu Adam
Head of the Brussels network convicted of money laundering
Abu Ahmed
Number two in the Brussels network convicted of money laundering
Frank
Former money launderer involved in European hawala networks
Gerald Tatzgern
Leader of human-trafficking investigations at Austria's Criminal Intelligence Service (BK)
Quentin Mugg
Police commander and Europol liaison officer specializing in money laundering

↳ Why This Matters

The investigation highlights a sophisticated, unregulated financial network enabling vast sums of money to fund criminal and extremist activities, posing a significant challenge to global law enforcement and financial intelligence agencies.

Key facts

  • A WhatsApp group chat, 'Traders of Greater Europe', was used to facilitate hundreds of millions of euros in illicit cash transfers globally.
  • The investigation uncovered payments to organized crime and extremist groups, including Islamic State militants in Syria.
  • The hawala system, which bypasses traditional banking and electronic records, was used for these transactions.
  • The case began as a terror financing investigation but revealed a vast network of criminal transactions.
  • Evidence included thousands of photos of cash and identity cards, suggesting a high volume of processed transactions.

A WhatsApp group chat, identified as 'Traders of Greater Europe', was instrumental in facilitating hundreds of millions of euros in illicit cash transfers across the globe, according to an investigation by European broadcasters.

The 532-member group chat was used to arrange cross-border cash payments for organized crime and extremist activities, including sending funds to Islamic State militants in Syria. The transactions utilized the ancient hawala system, which operates through a network of trusted money brokers and bypasses traditional banking systems and electronic records.

Belgian investigating magistrate Vincent Guerra discovered the chat on the phone of a convicted money launderer, describing the find as akin to 'hitting the jackpot' for understanding the workings of this underground financial system. The case, which began as an investigation into terror financing, revealed a staggering volume of transactions covering the entire planet.

Evidence obtained included thousands of photos of €5 notes with serial numbers and identity cards, suggesting the processed transactions were extensive and professional. The hawala system, while sometimes used for legitimate purposes like remittances, is frequently exploited by criminals to avoid scrutiny from financial institutions like those in the SWIFT system.

Further investigations across Europe uncovered other gangs using hawala for criminal enterprises, including drug trafficking, prostitution, and people smuggling. In Austria, police raided a hawala operation run from a kebab restaurant, linked to human trafficking and violence, where a courier was tortured for losing funds. Europol also dismantled a separate people-smuggling ring financed through hawala that had transported an estimated 100,000 people into Europe.

Frequently asked questions

Hawala is an informal money transfer system based on trust between brokers (hawaladars) in different locations. One broker receives cash and the other agrees to supply the equivalent amount, minus a commission, to the recipient, settling accounts later without electronic records or physical cash movement.

Criminals use hawala to avoid the scrutiny and reporting requirements of formal banking systems like SWIFT, allowing for untraceable transfers of funds derived from illegal activities.

Hawala is illegal in many countries, including most of the EU. However, it is legal in the UK provided the brokers are registered with HMRC.

It was a 532-member WhatsApp group chat used by individuals to arrange cash transfers, often exceeding €5,000, for organized crime and extremism, including payments to Islamic State militants.

What Happens Next

01Further investigations into the extent of hawala networks and their involvement in illicit finance are expected.
02Law enforcement agencies will likely increase efforts to track and dismantle these underground financial channels.

How It Developed

A WhatsApp group chat was used to send hundreds of millions of euros in cash around the world.
The group chat, called 'Traders of Greater Europe', was used to arrange cash transfers across borders.
Payments were made to clients including militants from the Islamic State group in Syria.
Belgian investigating magistrate Vincent Guerra uncovered the chat, noting the staggering number of transactions.
The case began as an investigation into terror financing but expanded to cover a vast range of transactions.
Members used Arabic messages to arrange cash payments via the hawala transfer system.
Hawala involves money brokers arranging funds without electronic records or physical transport of cash.
The 'Great Traders of Europe' group was for transactions over €5,000.

Sources

T1
WhatsApp chat used to send cash for crime and extremismBBC News

Related Stories

Royal Navy tracked Russian vessels for 72 hours in UK waters
29 Aug · 2:10 PM
Migrant dies, 72 rescued from boat near France attempting UK crossing
29 Aug · 1:16 PM
Russia launches massive attack on Ukraine; Kyiv hits oil refineries
30 Aug · 3:00 AM
Ukraine Warns of New Russian Ground Offensive Plans Targeting Kyiv
29 Aug · 10:46 AM
Daughter traces mother and aunt’s last known location in Nepal through TikTok video
29 Aug · 5:16 PM