Convicted money-launderer among investors in Rīga property scheme

The European Broadcasting Union's (EBU) network of investigative journalists published a study at the end of August about an underground banking system that secretly moves large sums of money between countries around the world. In Europe, it is used to launder billions of euros from tax fraud, drug trafficking and human trafficking. "The 'Hawala' system is an ancient underground banking system that operates outside the usual banking environment and can be used for legal purposes, for example, it is used by immigrants to send money home in regions where there is no functioning banking system. It is practical, safe, fast, cheap and it works. But the problem is that the criminal world has also found out about it," says Danish investigative journalist Kasper Vilsmark. These transactions do not involve the physical movement of money across borders or through banks.