Global crackdown on smugglers' cash

MIGRANT smugglers are raking in hundreds of millions every year despite Labour's vow to "smash the gangs".

- By Michael Knowles HOME AFFAIRS EDITOR

Ministers and law enforcement chiefs from more than 40 countries will tomorrow use an Organised Immigration Crime Summit to bolster efforts to seize vast quantities of cash.

Government officials believe the meeting will be an opportunity to expand "the follow-the-money strategy globally".

Migrants and smugglers use the ancient payment system known as hawala.

This sees a third party pay a "handler" in the migrants' home country. This money is then held until the migrant arrives safely at their destination. The smuggler can collect his money from another handler in the country where he is operating.

No physical money is ever transferred under this system but it effectively means criminals can move their profits across continents almost as quickly as regular bank transfers without the scrutiny.