Saudis and expatriates face trial for SR14 billion hawala deal

JEDDAH, 4 Oct 2016: A number of Saudis and expatriates face trial for their involvement in money laundering amounting to SR14 billion. The money was transferred abroad through two so-called hawala transactions. Officials of the Bureau of Investigation and Public Prosecution (BIP) said that these are the largest illegal hawala transactions uncovered so far, Al-Watan daily reported. The BIP officials said that the trial of the suspects will begin this month at a local court in Jeddah. They said that SR6 billion and SR8 billion were involved respectively in the two separate money-laundering cases. In the first case, the money was transferred illegally to a Gulf country. A number of people were arrested in connection with the transaction. They included senior officials and employees at local remittance outlets and money exchanges, and two Indians who work with a trading company. They are accused of transferring the money illegally and that was in coordination with some individuals working outside the Kingdom. According to the sources, the defendants have misused their banking positions through colluding with an organized gang operating in the field of illegally transferring money to outside the Kingdom. The officials were accused of accepting financial remuneration after entertaining bogus deposits and issuing documents certifying that these are true transactions in contravention with their job obligations as well as the state rules to protect financial institutions from money laundering. The investigators found that some Saudi bank employees were involved in the second transaction after accepting money for the illegal transaction. The defendants involved in this transaction also include some Egyptians working in an investment company as well as Indians and Egyptians working in a jewelry establishment. Source : SaudiGazette