WhatsApp group chat facilitated millions in illicit cash transfers

An investigation by European broadcasters has revealed that a WhatsApp group chat was instrumental in transferring hundreds of millions of euros globally, supporting organised crime and extremist groups without leaving any traditional financial records.

This 532-member WhatsApp group, known as "Traders of Greater Europe", facilitated cash transfers across international borders for clients, including destinations in British cities like London and Birmingham.

In one instance, funds were sent from Brussels to members of the Islamic State group (IS) operating in Syria.

The investigative journalism network of the European Broadcasting Union (EBU), which includes the BBC, also uncovered extensive evidence of similar cash transfer systems being employed in activities such as human trafficking and illicit drug trade.

Belgian investigating magistrate Vincent Guerra initially uncovered this group chat, which contained over 82,000 messages exchanged between late February and December 2022. An investigating magistrate is a judicial official who scrutinises evidence in complex cases before a trial to determine if prosecution should proceed.

Guerra described the sheer volume of transactions as "astonishing" and noted that the network's reach extended across "the entire globe". He explained that while the investigation began with terror financing, it soon became clear that this was merely a small part of the total transactions.

Participants in the group chat used Arabic messages to arrange cash payments via the ancient hawala transfer system. Hawala relies on a network of trusted money brokers to facilitate worldwide fund transfers without electronic records or the physical movement of banknotes.

This system operates through an agreement between two brokers, referred to as hawaladars, located in different places. One hawaladar receives a cash sum, and the other agrees to deliver the equivalent amount, minus their fee, to the intended recipient. The hawaladars later settle all their accumulated transactions between themselves.

Hawala transfers are frequently used for legitimate purposes, such as migrant workers sending money back to their families in countries where access to formal banking services is limited.

However, criminals can exploit hawala transfers to circumvent the Swift system, which is used for most international money transfers. Banks using Swift typically flag large or unusual transactions and are obligated to report any suspicious activity.

The Great Traders of Europe group specifically handled transactions exceeding €5,000 (approximately £4,279), and payments were frequently much larger. There is no suggestion that every participant in the group was involved in handling illicit funds.

While hawala is prohibited in many nations, including most EU member states, it remains legal in the UK provided that the brokers are registered with Her Majesty's Revenue and Customs (HMRC).

The EBU obtained the trove of WhatsApp messages after a 2024 court case in Belgium led to the conviction of six money launderers, including Abu Adam, who was identified as the network's leader in Brussels, and his second-in-command, Abu Ahmed.

Belgian police had previously found evidence indicating that the defendants were sending money to IS, with the intention of assisting the wives of militants in escaping detention camps in Syria. Upon arresting Abu Adam, officers discovered the Traders of Greater Europe group chat on his phone.

Guerra remarked that this discovery was like "hitting the jackpot", as it unveiled the intricate operations of a vast, clandestine system. Abu Adam’s phone also contained 6,000 photographs of €5 notes showing their serial numbers and 6,000 photos of identification cards. Guerra indicated that these details are commonly used as unique identifiers in hawala transactions, and the total number of notes and IDs suggested Abu Adam had processed at least 12,000 transactions.

He stated that this was not amateur work but rather "professional, and at a level we could never have imagined," describing the individuals as "bankers with no government oversight."

He recounted his initial encounter with the hawala system at an office in a small town near Rotterdam, where he estimated that five or six couriers arrived within about 90 minutes, transferring at least one million euros.

He concluded by saying that he later realised the system was not solely about money, but also encompassed "the financing of terror," "drug trafficking," "prostitution and all sorts of other crap, to put it nicely."