Dusseldorf, March 30, (dpa/GNA) – German investigators have targeted a hawala payment network with raids in seven cities and towns.
The investigations targeted 31 suspects and were focused on money flows between Germany and Lebanon, said Julius Sterzel, a spokesperson for the Dusseldorf public prosecutor’s office.
Several hundred officers were involved in the raids, with the largest number in Berlin.
According to the police, officers searched homes and officers in Berlin, Hamburg, Essen, Mannheim, Mittenwalde, Hassloch and Schönefeld.
Hawala banking, which is based on mutual trust rather than a contract, allows customers to transfer money outside a state-approved banking and financial system for a commission. The fees are usually low compared to the rates that banks charge.
It is widely used in India and particularly in Muslim countries as an alternative remittance system but is banned in Germany.
GNA