TERRORIST FINANCE: USING CALL CENTERS FOR ILLEGAL

C O N F I D E N T I A L THE HAGUE 002244

SIPDIS

STATE FOR EB/ESC/ESP, S/CT, INR/EC, EUR/ERA, INL/C/CP
TREASURY FOR ZARATE (TREASURY),WOLFE (GENERAL COUNSEL),
NEWCOMB (OFAC),AND TASK FORCE ON TERRORIST FINANCING
JUSTICE FOR OIA/FRIEDMAN
FBI FOR LORMEL
BRUSSELS ALSO FOR LEGATT

E.O. 12958: DECL: 09/08/2008
TAGS: PTER ETTC NL
SUBJECT: TERRORIST FINANCE: USING CALL CENTERS FOR ILLEGAL
FUNDS TRANSFERS

REF: FBIS EUP20030826000011 OF 8/25/03

Classified By: Economic Counselor Richard Huff Reason 1.5(b) and (d)


1. (C) Summary: Dutch officials expect to take action
against several Amsterdam call centers for illegal money
exchange activities. Their investigation has developed
independently from an Amsterdam city council report on
possible hawala banking activities by these call centers.
End Summary.


2. (U) The Dutch press (reftel) reported August 25 on an
Amsterdam city council report highlighting the possibility of
"call centers" being used as hawala banks. These centers--
often little more than an office with two or three phone
lines -- draw upon immigrant populations for their clientel
and claim their ability to secure telephone lines wholesale
from KPN (the dominant player in the Dutch telecom market)
makes their business model (charging immigrant workers to
call their country of origin) viable. The explosive growth
in the number of these centers over the past year -- the team
preparing the above referenced report surveyed 117 call
centers in Amsterdam alone -- led many to wonder whether
international calls alone could sustain so many centers.
According to the press, the Amsterdam city council decided to
look at call centers after investigation into approximately
100 million dollars in illegal money transfers by group of
ethic Pakistanis suggested that call centers may have
facilitated the transfers.


2. (C) Dutch authorities have long been aware of the
possibility of call centers being used for hawala banking.
The Dutch press reported in late 2001, for example, of
several call centers in Rotterdam possibly being linked to
the Barakat network. Our contacts have told us that the
Amsterdam city council report is incomplete and inconclusive
-- the authors purposely did not coordinate or exchange
information with police authorities and the Central Bank
(charged with registering and supervising informal money
transfer systems) who are conducting a similar investigation.
Our contacts indicate that Dutch authorities are
investigating calls made through several of the calling
centers and expect be able to take legal action against
several of the call centers for conducting illegal money
exchange activities.
SOBEL