How was the hawala system used in the VLN visa scandal?

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The Hawala System Was Utilised for Corrupt Transactions in the VLN Visa Scandal

The hawala system was employed to facilitate illicit financial transactions associated with the approval of Foreign Visa System (VLN) permits for Bangladeshi nationals entering Malaysia. Investigations by the Malaysian Anti-Corruption Commission (MACC) are actively tracing multiple transactions believed to be payments aimed at securing tourist visas, which are then improperly used for entry into the country. It is suspected that substantial sums of money have been funnelled through this informal network to various destinations.
Hawala's Role in Illicit Fund Transfers

Hawala operates as an informal money transfer system that bypasses official banking and financial channels, functioning through an "underground" method. This system was exploited to move funds related to the fraudulent procurement of VLN visas. The MACC's ongoing efforts are focused on identifying the full extent of these untraceable financial flows and the individuals involved in channelling the money.
Abuse of the VLN for Illegal Entry

The VLN, intended as a social visit visa for foreign tourists with a defined period of stay, was misused in this scheme. Specifically, Bangladeshi nationals are granted a 30-day stay under this visa category and are not eligible to apply for work permits. The abuse of the VLN visa has led to an oversupply of Bangladeshi workers in Malaysia, indicating a systemic issue with the visa approval process.
Investigations into Visa Misuse and Worker Surplus

Further inquiries by the MACC have substantiated that the excess of Bangladeshi workers in Malaysia stems directly from the improper utilisation of the VLN. This issue gained significant media attention following the detention of two Immigration officers assigned to the Malaysian High Commission in Dhaka, Bangladesh, in April. These detentions marked a crucial point in uncovering the extent of the VLN visa scandal.

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How was the hawala system used in the VLN visa scandal?

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