The Battle for Money Transfers: The allure of PayPal and Western Union over Familial remittance networks

Abstract

Informal Money Transfer systems continue to provide importunate loopholes in the global wrestle against terrorism. Radical cells, as well as broader criminal networks, maintain their use of Hawala systems, but do so in concert with other informal transfer systems, largely to sidestep the regulatory and administrative management of formally institutionalized worldwide money transactions. At a time when financial acts are globally regulated under the Basel Accord and other global instruments, the enduring use of Informal Value Transfers (IVTs) in Australia is cause for mounting unease. To concentrate on the informal money transfer system known as Hawala, is to overlook much of the problem. PayPal and its related cyber-systems outperform Hawala transfers through the commercial necessity for fast, efficient capital mobility. This paper posits that prevention and mitigation strategies for the wider group of online financial transactions need urgent re-evaluation. The activities of PayPal, Western Union, and other cyber-dependent systems, conceal transactions that support terrorist and criminal activities.


AUTHORS

Photo of David Cook

School of Computer and Security Science, and ECU Security Research Institute Edith Cowan University
Australia

David Cook is a researcher in the Edith Cowan University Security Research Institute (ECUSRI) and is also a lecturer in security in the School of Computer and Security Science. He obtained an MBA from Murdoch University and is completing his doctoral studies in e-Governance and Human Computer Interactions. David lecturers in security and specialises in e-Governance, Cyber Ethics, Cyber resilience, Counter Terrorism, Money Laundering, and CIP. David was formerly the Manager of the SECAU Security Research Centre and is currently the Chair of the Australian Computer Society.

Edith Cowan University

Timothy Smith is a Security Science student at Edith Cowan University. He is currently working towards the completion of a Bachelor of Counterterrorism, Security and Intelligence. His research interests include money laundering and Just War theory.

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Keywords

C

C2
C2S
CDX
CIA
CIP
CPS

I

IA
ICS

S

SOA

X

XRY

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