§ Norman BakerTo ask the Secretary of State for the Home Department what recent assessment he has made of the potential misuse by terrorists of the Hawalla banking system; and if he will make a statement. [8003]
§ Mr. Denham[holding answer 15 October 2001]: The informal nature of this banking system makes it difficult for law enforcement agencies to monitor financial transactions that may or may not be connected to criminal activities. However, the police will continue to give a high priority to the investigation of financial transactions instigated by criminals using banking systems, whatever their nature, around the world. In particular, the economic crime unit of the National Criminal Intelligence Service 849W is conducting a strategic assessment of Alternative Remittance Systems, such as Hawalla banking, including the possible use of these systems by terrorists and other criminals, which will inform us of what measures need to be taken.