This chapter explores the practice of hawala as informal funds transfer system in South Asia and how it facilitates terrorist funding and money laundering activities in the region. It also briefly examines the regulatory mechanism in place to control the hawala remittance system.
In mid-2022, Bangladeshi police stumbled upon a burgeoning Islamist militant conglomerate called Jamaatul-Ansar-fil-Hindal Sharqiya (Assembly of the Helpers in the East of India, or “Jamaatul Ansar”) while investigating youth disappearances in the country. More than 50 youths have reportedly left their homes to join Islamist groups under the pretext of religious migration (hijra) in the last two years (Parthom Alo, September 25, 2022).
On February 17, the Indian government banned the Kashmir-centric Islamic militant group called the Jammu and Kashmir Ghaznavi Force (JKGF) (egazette.nic.in, February 17). A relatively new entrant in the Kashmir landscape, JKGF emerged as a hybrid strike unit comprised of highly trained cadres of Pakistan-based Tehreek-ul-Mujahideen (TuM), Lashkar-e-Taiba (LeT), and Jaish-e-Muhammed (JeM).
As Rohingya refugee camps near the Naf river (which partially separates Bangladesh and Myanmar) become hubs for organized crime and militants, Bangladeshi authorities fear spillover effects for Bangladesh and for the region more broadly. Refugee camps have mushroomed along Bangladesh’s southeastern border since August 2017 as a result of the Rohingya exodus from Myanmar’s Rakhine State. However, now these refugee camps are becoming havens for crime, replete with gang violence, targeted killings, and the trafficking of drugs, firearms, and counterfeit currency.
On April 21, amid an unprecedented economic meltdown, political turmoil, and social unrest, Sri Lanka observed the third anniversary of the Islamic State (IS)-claimed Easter Sunday terror attacks. To mark the occasion, President Gotabaya Rajapaksa promised once again to punish those behind the carnage that killed 260 people and injured over 500, who were mostly Christian worshippers at Easter services, foreign nationals, and tourists in hotels. Rajapaksa reiterated his government’s commitment to ensure justice for all the victims of the Easter terror attacks.