Hawala scandal in Vienna: brothers and second wife in court!

Hawala scandal in Vienna: brothers and second wife in court!

Wien-Ottakring, Österreich - On June 6, 2025, the process for the largest Hawala office in Austria began, in which a Syrian trio is charged. This operated a restaurant in Vienna-Ottakring and earned primarily through the Hawala payment system, which is known for its informality and a basis of trust. The accused, two brothers and the second wife of the older brother, are suspected of being responsible for the handling of payments for hundreds of tractor trips between August 2021 and March 2024. The 41-year-old defendant is considered the "boss" of the restaurant, while his younger brother and the 45-year-old second woman act as his "right hand".

In the first quarter of the previous year, money couriers transported several million euros in cash on a total of 21 trips. Part of the money transported was stored in the 45-year-old's house in Vienna-Floridsdorf. Despite the severity of the allegations, the defendants do not guilty to tow. The defense lawyer has emphasized that the public prosecutor's office in reality wants to combat the Hawala system, which continues to complicate the background of the case.

The Hawala system: background and functionality

The Hawala system, which means "transfer" in Arabic, has existed in the Abbasid calipat since 750. It works based on trust and mutual support without direct money transactions and without official state approval. A payer hands over cash to a Hawaladar, who then informs another Hawaladar at the destination. The recipient receives the amount of money in cash in his state currency, while there is no direct flow of money between the Hawaladares. This procedure enables large amounts of money to be transferred quickly and easily, which can be used for both legal and illegal purposes, such as for money laundering and the financing of terrorism.

According to the World Bank estimates, around $ 200 billion is transferred from Hawala networks annually. Hawala is often used as an alternative method in regions where traditional banking systems are missing. Welthungerhilfe has used this system in the past to support millions of people in crisis situations because it works faster than conventional bank transfers. This illustrates the double role that Hawala plays in society - as a means of support and as a potential tool for criminal activities.

Legal challenges and illegal use

The use of Hawala is regulated in the EU and requires a corresponding license, which makes the activities of such systems into unauthorized financial transfers. Since Hawala often works "unexpectedly, accounted and bankless", the documentation of money flows and transfers is not available. This makes it significantly more difficult to uncover criminal machinations. Government authorities and organizations such as BaFin have therefore determined that Hawala systems are often associated with money laundering, terrorism financing and tax evasion.

BAFIN and the Federal Criminal Police Office have developed strategies to limit the illegal financial transfers, but the Hawala system remains a challenge due to its nature and the various networks that are active worldwide. While the process for the Syrian trio continues in court, attention is drawn to the area of ​​tension between Hawala's usefulness for humanitarian purposes and its questionable use for criminal acts.

The background and current incidents related to the Hawala system underline the need for a differentiated view in order to find the balance between legal requirements and humanitarian needs. 5min.at reports that the processes not only have to focus on such financial systems, but also the mechanisms of money transfers themselves. In the meantime, illuminates tagesschau.de The far-reaching criminals associated with their use. A deeper analysis of Bafin also shows how un -Regulated money transfers can be a serious risk for national and international security.