Two Liverpool men who helped launder more than £20m of drugs money through banks were spared prison. The money is believed to have been laundered using legitimate bank accounts and an ancient Islamic money lending system…
Kamran Butt and Instar Ahmed, from Greater Manchester and Liverpool men Steven McKenna and Sean Moore were put under surveillance by police in two undercover operations. But officers found they were linked when Butt and Ahmed were seen depositing money into the same bank accounts. The money was transferred to the defendants, who were recruited by operatives in the Middle East, using the ‘Hawala’ system – an informal Islamic way of lending money based on honour agreements and third-party lenders. A fifth man, named in court as ‘Akhtar’, was also heavily involved – but was deported to Pakistan in 2012 and has not been traced since.
The Hawala System
Originating in ancient Islamic law, the Hawala system operates through huge numbers of money lenders across the Middle East – and principles of honour through family and religion. The system operates outside any legal framework – so although not illegal in itself, is often exploited by criminals needing to move large amounts of money without attracting suspicion. To move money, a customer approaches a Hawala broker in their native city and gives them the money to be transferred. That broker then contacts a broker in the same city as the recipient, giving them the cash along with a password or code number. The recipient, given the code by the original customer, contacts the second Hawala broker and uses the password to prove they are the correct recipient and receive the money.
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