Tobacco cartels launder millions through ancient money networks
Tobacco cartels use private ATMs and ancient money networks to move tens of millions earned from illegal sales overseas.
An ABC investigation found a money-laundering operation. It spans multiple states and moves tobacco cartel profits overseas.
At the centre is an Iraqi asylum seeker. He collects cash from shops supplied with illegal tobacco.
He sends millions to Dubai. The network uses private ATMs and hawala dealers.
Hawala is an ancient money-transfer method. Dealers use trust and relationships instead of moving physical cash.
Recipients get paid by someone in their own country. Dealers keep a tally and settle up later.
Terrorists and organised crime favour this method. Jailed Iraqi kingpin Kazem Hamad allegedly led the operation from exile.
He was arrested this year. Police sources told the ABC they lack resources to fight the trade.
They say high tobacco taxes create a profitable black market. The operation connects to some Al Dilami family members involved in illegal tobacco.
- Kazem Hamad, jailed in Iraq
- Alleged kingpin
- Dubai
- Money destination
- Tens of millions
- Amount funnelled
- Hawala dealers and private ATMs
- Transfer method
Why it mattersA major crime operation has found gaps in Australia's money-transfer oversight. It can move illegal profits beyond what law enforcement can reach.
AustraliaAustralian tobacco cartels operate sophisticated international money laundering, highlighting failures in regulating money-transfer businesses.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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