German Foreign Ministry funds Afghanistan using taxpayer resources. - The federal government employs illicit hawala banking systems.
The masterminds behind the illegal payment scheme are considered part of a criminal organization by the Federal Court of Justice. In Germany, "hawaladars" who facilitate this unlawful activity are regularly charged by prosecutors and can face up to five years in prison. According to the Federal Financial Supervisory Authority (Bafin), this unregulated system mainly operates outside the law.
The illegal transfer of money is based on trust, and during a period when the German government provided project funding, around 245,000 euros was sent through the hawala system. This means that nearly 10% of the funding remained within the hawala system.
While the users of hawala banking are not usually prosecuted, the providers face legal consequences. In a recent case, three alleged hawaladars (52, 53, 56) are accused of transferring over 2.5 million euros in 160 transactions and receiving 100,000 euros in commissions.
So, is someone who uses hawala banking a criminal? The Ministry of Annalena Baerbock (43, Greens) approves of its use in certain exceptional cases. Recently, her spokesperson told us: "When there are no other options for transferring money to save human lives, funded humanitarian partner organizations in Afghanistan can utilize the hawala system as long as all risks are evaluated."
The ministry ensures these decisions are made in collaboration with the Federal Ministry of Finance. Any transfers from Germany would require approval from Bafin. Bafin replied, "Hawala banking is not legal in Germany."
Despite efforts to crack down on these illegal structures, the European Commission has acknowledged the use of money transfer agents in certain circumstances. In their guidelines, they indicate that hawala commissions can be eligible for funding if humanitarian organizations can prove there was no other method available and any risk of misuse was minimized.
Law enforcement agencies have been diligently working for years to dismantle organized crime networks. The Customs Criminal Office, Federal Police, and local authorities have been conducting regular checks with their international partners to identify and apprehend hawaladars. Oftentimes, significant amounts of untraceable money are confiscated during these operations.
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