I Became Park Jeong-ui’s Nephew - Chapter 320



Only Noblemtl

He became Park Jeong-ui’s nephew. – (320)

“What exactly is Hawala?”

“It means trust in Islamic terms. Bonds – a traditional Islamic remittance system where debtors transact on credit without going through banks.”

“No… Are you really saying that such a transaction is possible based on credit alone?”

“Yes, in Islamic society, fraud means death. If you don’t want your family, brothers, or friends to be threatened, you shouldn’t commit fraud.”

This is Korea, an interesting topic that has caught the attention of society.

In modern society, transactions through banks are common, but Islamic societies lived a life far from that concept.

Islamic merchants played a role in connecting China and the West via the Silk Road, but wasn’t there a possibility that they would have been threatened by bandits during this process?

Naturally, they suffered from numerous threats and created a system of remittances through shops called hawala.

“I came to get money.”

“Please enter the password.”

“Brothers and Faith.”

“Here it is.”

Surprisingly, this is the method of remittance that was used in Hawala stores at the time.

During this process, there was no collateral or documentation left behind.

This is possible because all records, including passwords, are destroyed as soon as the transaction is completed, and Islamic society has established a system based on trust.

If anyone breaks this trust and commits fraud, the only price to pay is death.

Not only you, but your entire family – your entire relatives – could die.

In this respect, Hawala is a system that runs on the basis of thorough revenge rather than trust, and it has been confirmed that more than 1 billion dollars are traded annually through Hawala in Pakistan.

Then why did Hawala receive attention from Korean society?

That’s because as the Korean economy develops, fraud crimes are on the rise.

This applies not only to Korea but to all countries.

Globally, fraud losses this year have exceeded $12 billion, with 52% of those occurring remotely.

You might not realize how serious this is, but in the UK for example, 0.0084% of all financial transactions were suspected of fraud.

You may not think it’s much, but it’s a 20% increase from just 5 years ago. In the US, financial losses due to checks, cards, and non-face-to-face transactions accounted for 0.00025% of total financial funds.

The damage is estimated at about 4 billion dollars, and the rate of card fraud in particular was the highest in the world at 0.13% in the United States.

If this accumulates, can financial order and trust be established?

The bigger problem is that financial fraud is snowballing as banks in each country provide their customers’ personal information to ‘third-party payment service providers.’

What is important to note here is that the third-party payment service provider,

I clearly paid business funds to B, but if the person who actually received the money was C, isn’t something wrong?

But this is the actual way of doing business in the international community.

For example, if Company A in Korea and Company B in the United States conduct a transaction through a multinational corporation, it becomes a third-party payment. In addition, transactions through a personal bank account rather than a corporate bank account can also become a third-party payment.

In order to prevent such third-party payment fraud, the UK and US require related companies to submit payment method reports to financial institutions every three years.

The problem is that this method of submitting reports every three years has many holes.

However, if regulations are tightened too much, the institutions that can act as bridges between companies will disappear.

This is the question, how long can the law control fraud?

A Korean economist asserts that there is only one way to prevent fraud.

“I think we need to introduce the hawala system into the financial market. Anyone who commits fraud should be arrested, including his family, siblings, and all those involved.”

“Ah… Professor, isn’t that too extreme?”

“No. Why would a con artist run away alone? If they run away with their family, they will be quickly caught, and they know that their family will be protected by the law even if they run away. That’s why we need to introduce a system of collective punishment for these crimes. That way, they won’t dare to commit fraud.”

In fact, this issue has recently become controversial in Korea.

The case in which a couple was arrested together on fraud charges goes something like this.

[In 1989, the defendant couple purchased a portion of 20,000 square meters of forest land and started a sales business. They lured investors by promising to pay 100,000 won per pyeong, and lied that if the sale did not go through, they would transfer the title of the real estate to the investors.]

So how did this incident turn out?

The couple literally ran off with 500 million won after receiving it from investors.

Under Korean criminal law, if the amount of fraud exceeds 500 million won, it is subject to increased punishment.

The police pursued the couple furiously, arresting the wife first.

“I did nothing wrong!! I just lent my bank account to my husband!!”

“Don’t lie!! You’re an accomplice too?!!”

“No!! I didn’t know my husband would run away like this!! That guy even ran away with my money!!”

In a literally absurd case, the court did not punish the wife for a major crime, considering that the husband ran away with her money.

But is my wife really innocent?

In Korea, financial crimes exceeding 500 million won are subject to increased punishment, but the amount of money the wife received from the victims (approximately 65 million won) did not meet that standard, so she received a relatively light punishment.

Could it be that the husband was aiming for that and ran away alone, abandoning his wife?

In fact, when the police later reinvestigated the case, it was revealed that the wife and husband continued to contact each other afterward.

Even the couple’s daughter was found to have been involved in the process, so the entire family was just a con artist.

Is it unnecessary to apply the joint liability system to financial crimes?

What if a scammer transfers the money to his family or acquaintances?

Since there is no collective punishment, can’t a conman live in prison for a few years and then be released and live a life of luxury using the money transferred to his family’s name?

For these guys, the right thing to do is to kill the entire family based on the Islamic hawala system.

If I run away, my whole family will die. Who would dare run away?

Of course, there are those who run away to eat well and live well on their own, but there is still a need to set an example for society.

The problem of financial fraud that can no longer be ignored,

AOPR is also starting to take this issue seriously.

***

“If we bring the con artist’s family, including his siblings and parents, to the court of law and have them deal with it, something will come of it.”

“Understood, Your Majesty.”

This is Geumneung,

I sat down with AOPR’s Attorney General, David Ackerman.

Financial fraud crimes have already exceeded 10 billion dollars, and what’s even more outrageous is that these guys hide the money in accounts created under the names of their family members or acquaintances.

I guess they’re trying to exploit the loophole that collective punishment is not allowed in a democratic society.

But those guys thought I was so funny.

Do you think I would fall for such nonsense?

In the future, if a person is wanted as a fraudster, the bank accounts of that person’s family and all others involved will be confiscated and financial transactions will be prohibited.

In modern society, not being able to conduct financial transactions means not receiving a salary, which is literally like drying up and dying.

Let’s see how long it lasts,

This time, the executives of the multinational corporations who fled were also judged by international law.

A fraud involving financiers who were leading the currency exchange business in seven countries around the world, with the damage estimated at approximately $1.2 billion.

What’s even more frustrating is that only $200 million was recovered, so where did the remaining $1 billion go?

Interpol confiscated all the bank accounts of the fraudster’s family and acquaintances, and discovered the illegal funds in question in a Swiss bank.

Now the fugitives are nothing more than street beggars, and they even aired TV ads warning that if they don’t turn themselves in, their families and acquaintances will all be hanged.

TV ads sent to 114 countries around the world, AOPR’s crackdown has left even the scammers no longer able to resist.

But this is just the tip of the iceberg, as the AOPR was also mobilized to completely destroy the hawala system within Pakistan.

Over the past three years, 39 cases of money laundering crimes using Hawala have been detected worldwide.

Since Hawala itself is a system that leaves no trace of financial transactions, it is the perfect route for criminals to launder money.

In particular, Pakistan’s recent dollar transactions with the United States have reached $1 billion, and it is impossible to estimate how much of this is illicit money laundered.

All funding lines with unclear financial data will be blocked.

Pakistan’s money supply suddenly dried up.

Just a year ago, it was making over $200 million in revenue in the US, but now that is no longer possible, and the Indian government has also joined in the pressure on Pakistan.

“You must have really tormented us back then?”

“This time, you experience it.”

The Indian government cooperated with the AOPR sanctions.

A year ago, when AOPR attacked India, Pakistan took control of food going into India in return for money from AOPR.

Could India have forgotten that grudge? When AOPR harassed Pakistan, India, as if it had been waiting for this moment, bit Pakistan.

Unless Hawala is abolished, the pressure from the international community will continue.

Pakistan’s economy was brought to the brink of collapse by harsh repression policies.

AOPR is not even trying to kill the Pakistani economy, which accounts for 81% of global GDP, a population of 3.7 billion, and a mere 0.02% of global GDP.

Meanwhile, organizations that had been making a lot of money through illegal money laundering are on the verge of collapse, and the power of the Islamic armed groups they support has also been greatly weakened.

The biggest problem is the skyrocketing oil prices, and AOPR, which controls 74% of the world’s oil, has blocked oil from entering Pakistan.

In the aftermath, prices in Pakistan soared by 127%, and the Pakistani government, unable to bear it any longer, requested financial bailout from the IMF, but this too was blocked by the AOPR.

Pakistan is experiencing the same blockade that India was experiencing.

Meanwhile, Pakistan’s leaders committed the shameful act of embezzling funds.

In the process, a loophole in the hawala system was revealed, and an incident was uncovered where an Islamic imam (leader of an Islamic religious group) embezzled 30 million rupees of donations from followers through hawala and used it as his personal funds.

As protests spread across Pakistan, demonstrators applied the principle of collective punishment to the leaders of the Islamic sect, as well as their families and acquaintances.

A case that proves once again how serious a crime fraud is.

Unable to hold out any longer, the Pakistani leadership declared complete surrender to the AOPR.

AOPR’s Attorney General David Ackerman said that by moving all financial transactions in Pakistan to go through banks, virtually all avenues for laundering illicit money from around the world have been eliminated.

Even if you commit fraud, you will be caught by Interpol and pursued relentlessly by AOPR.

The global financial fraud loss, which amounted to $12 billion, fell to $4 billion in just one year.

But the business still has a long way to go,

Since then, AOPR has treated financial fraud crimes as crimes equivalent to murder.