Inside ICE: Volume 2, Issue 19

Senate Witness on Hawalas Sentenced for Running One

ALEXANDRIA, Va. — A Virginia man who testified before a U.S. Senate committee after 9/11 on the dangers of money transmitting businesses (commonly known as “hawalas”) was sentenced to 18 months in federal prison for operating one without a license, in violation of provisions of the USA Patriot Act.

Rahim Bariek, 46, of Herndon, Va. was arrested by special agents from ICE and IRS on April 15. Bariek received at least $4.9 million in funds from individuals wishing to transfer money out of the United States to places including Afghanistan, Pakistan, and Iran. He testified before Congress as a hawala expert on November 14, 2001 that he knew all his customers and said, “I am happy to comply with the [USA Patriot Act],” which requires money transmitting businesses to comply with state licensing requirements. But the government presented evidence at Bariek’s sentencing showing that he could not possibly have known all of his customers, and that he transmitted funds to Afghanistan immediately after the 9/11 terrorist attacks when Afghanistan was still under the control of the Taliban and a base for Al-Qaeda operations.

“Illegal money transmittal businesses and hawalas pose a serious vulnerability because they provide criminals with a back-door mechanism to move dirty money around the globe undetected," said Allan J. Doody, Special Agent-in-Charge ICE in Washington, D.C.

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Inside ICE is an e-newsletter produced by the ICE Office of Public Affairs to inform the public about the mission, operations and activities of U.S. Immigration and Customs Enforcement. Please send comments and contributions to Russ Bergeron, Editor.

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