Trial against brothers: Hawala scandal in Vienna-Ottakring exposes trafficking!

Trial against brothers: Hawala scandal in Vienna-Ottakring exposes trafficking!

OnJune 6, 2025A spectacular trial began at the Vienna Regional Court against two brothers and the second wife of the older defendant. The trio, who have Syrian roots, are suspected of having worked in one of the largest hawala offices in Austria. Until their arrests, the defendants ran a bar in Vienna-Ottakring, from which betweenAugust 2021andEnd of March 2024Payments for hundreds of smuggler trips were processed, as Kurier reports.

The 41-year-old main defendant, who was considered the restaurant's manager and is also referred to as "the boss", found himself in the firing line of the public prosecutor's office along with his younger brother and his 45-year-old second wife. According to the investigation, they operated “on a very, very large scale” and transported several million euros in cash on 21 trips in the first quarter of 2024. Some of the money was even hidden in the second wife's house in Vienna-Floridsdorf.

Hawala and its background

The hawala payment system the defendants used remains the primary means of transferring money for many migrants. Hawala is based on a centuries-old trust-based system originally developed by traders to protect themselves from highwaymen on the dangerous trade routes of the Middle Ages, such as the Silk Road. Al Bawaba explains that increasing migration from the Middle East to Europe, triggered by the Syrian conflict, has seen a sharp increase in the use of hawala.

The system works off-the-books and therefore often remains under the radar of governments and banks. During Hawala, money is handed over to a local confidant, the so-called “Hawaladar”. This informs a partner in the target region, who ultimately pays out the money to the recipient. This approach to trust is still valued today, especially when supporting families in the home country.

The allegations and the reaction of the defendants

Despite the allegations against them of being the directors of an extensive trafficking racket, the defendants pleaded not guilty. Her defense attorney pointed out that the prosecution wanted to fight the hawala system and argued that year after year the investigating authorities could not find sufficient evidence of criminal behavior.

Of the various aspects of the hawala system, what is particularly interesting is that while criminal activity only accounts for a small portion of total hawala transactions, the system is considered an illicit financial transfer business due to the lack of licenses in the EU. Experts from Tagesschau emphasize that an estimated 200 billion US dollars are transferred annually via hawala networks, with this system being used by both criminals and aid organizations.

It currently remains to be seen how the process will develop and what impact it will have on the understanding and regulation of hawala in Europe.