Europol Busts 'Hawala Banking' Network Cashing Crypto for Criminals
European authorities dismantled a clandestine banking network laundering over $23 million (€21 million) linked to organized crime, including migrant smuggling and drug trafficking. Europol reported the arrest of at least 17 individuals in Spain, Austria, and Belgium. The network provided parallel banking services, illegal hawala banking, cash collection, and cryptocurrency exchanges. Authorities seized approximately $229,600 in cash, $204,960 in crypto, 18 luxury vehicles worth over $232,000, 10 properties valued at over $2.8 million, high-end cigars worth around $701,000, and luxury handbags estimated at $259,000. The operation involved Chinese and Syrian nationals, with clientele primarily in the Middle East and China. The criminals operated through two factions: Chinese nationals for domestic cash collection and Arab nationals for international transfers, modernizing the traditional hawala system. The EU is considering tracking crypto transfers under existing anti-money laundering laws to record sender and recipient data for crypto-asset providers.
