THE HAWALA SYSTEM IN THE WESTERN BALKANS: CHALLENGES AND STRATEGIES FOR COUNTERTERRORISM AND COUNTERINTELLIGENCE

Abstract

The Hawala system, an informal and traditional money transfer mechanism, has been a subject of concern for counterterrorism and counterintelligence agencies worldwide due to its potential exploitation for illicit financial activities, including terrorism financing. This paper provides a comprehensive examination of the Hawala system’s presence in the Western Balkans, a region historically characterized by geopolitical complexity and a complex security landscape. Drawing on empirical data and regulatory analysis, this study explores the challenges posed by the Hawala system in the context of counterterrorism and counterintelligence efforts in the Western Balkans. It examines the system’s vulnerabilities, its exploitation for terrorism financing and the difficulties faced by intelligence agencies in monitoring and disrupting Hawala networks. Moreover, the paper assesses the regulatory frameworks implemented by countries in the region and offers practical policy recommendations to enhance counterterrorism and counterintelligence strategies, fostering greater security and stability in the Western Balkans.

Keywords

• hawala
• western balkans
• counterterrorism
• counterintelligence
• anti-money laundering