Regulatory Legal Advice for Hawala Banking

Also known as Hundi, Hawala Banking is an informal value transfer system based on the performance and network of money brokers, mainly located in the Middle East, Africa, and the Indian subcontinent. This operated outside of traditional banking, financial channels, and remittance systems. Hawala can be used to facilitate money laundering, avoid taxation, and move wealth anonymously if used criminally.  We understand that eastern culture influences how money is saved and transferred, why banks are avoided and thus raising suspicion on lawful funds.

Hawala banking is legal in the UK. However, it must comply with regulations set in England and Wales. An established and regulated money transfer business must register with HMRC, so that it complies with UK money laundering regulations.

Your business is a money service business if:

  • Acts as bureau de change
  • Transmits money, or representation of money
  •  Cashes cheques that are payable to customers

We at Ison Harrison can work with you, to defend how you comply with Money Laundering Regulations. In order to do so, we must show your log keeping and demonstrate the legitimacy of your operations. How you received money, how money was logged, what records were retained, how the money was banked, and how the money was sent abroad, will all be issues we need to discuss at length to defend your case. We can also help trace the end beneficiaries and beneficiary identifications.

Our Money Laundering Solicitors at Ison Harrison can help you gather all vital documentation needed to support your case. An allegation of money laundering requires a clear strategy and expertise legal advice.