Oval Podcast Episode.1: Money Laundering & Hawala

11th Dec 2014 Podcast

Money Laundering and financing of terrorism has assumed centre stage in the global security scenario given the burgeoning rise of terrorist outfits across the world. The inaugural edition of the Foundation’s podcast covers the issue of money laundering with a focus on financing of terrorism. In particular, the podcast explores the most nefarious alternative remittance system, Hawala, which has emerged as the preferred option for organized crime syndicates and terrorist organization for conducting cross border transactions. Rachit Ranjan and Shreyas Tirunagari from the Foundation explain about the emergence of Hawala and discuss case studies, which highlights how the system is used for funding illicit activities.

The Podcast also discusses the challenges that investigative authorities face during the asset recovery and identification process given the minimal paper trail that such transactions create. Further, FATF typologies and reports also suggest many tax havens such as Cayman Islands are home to monies derived from illicit activities and may be routed onward for funding other terrorist and disruptive activities.  The concluding remarks focus on the methods through which a country plagued by terrorism such as India, can tackle this scourge and thwart the outflow of black money from the country.

 

*Fai-Chen was a system of remittance prevalent in ancient China not Japan

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