As the United Arab Emirates' Counter-Piracy conference concludes, the true financial impact of Somali piracy spreads like ink in water across the globalised world.
The figure of $7-12bn per year leaves many wondering how much longer this scourge will be allowed to blight the region's economy. Western governments have tried to stop money laundering which emanates from the proceeds of murder, hijack and kidnapping; but success seems as elusive as the pirates themselves. According to the International Monetary Fund some 2-5 per cent of the world's GDP is dirty; a percentage which political scientist Heidi Johnson equates to between $590m and $1.5 trillion per year.
As the size of their ill-gotten gains increases from around $150,000 in 2005, to the record breaking $9.5 million for the Samho Dream in 2010, so it becomes more difficult to launder or spend such large sums without drawing attention to their illicit, criminal activities.
Today there is increasing evidence that Somali pirate clans are circumventing financial strictures put in place to disrupt the financing of terrorism in the aftermath of 9/11 by using the traditional channels of Hawala, an informal money transfer system. Use of such channels adds considerably to the problems of tracking the money from the ransom drop to end user.
But it also gives the Gulf region's financial authorities an opportunity to contribute to the international efforts to turn off the money tap, without prejudicing those in Somalia who depend upon foreign remittances to survive.
The efforts these highly organised criminals will go to to hide their money is every bit as disciplined as their Columbian or Afghan Narco-terrorist brethren. They are adept at exploiting loopholes in the monitoring and regulatory structures of the global financial set up and retain expert counsel either through coercion or corruption to ensure they stay ahead of the authorities.
Somali Pirates enjoy one instant advantage over their counterparts; they can move large quantities of money out of their failed state with little or no difficulty. Once outside Somalia, the money has already been "laundered" once and subsequent laundering becomes ever easier.
Hawala's mode of operation makes it perfect for failed states that are unable to support the financial and technological infrastructure required by Western Banks. What also makes Hawala channels so attractive is the extent to which the network has expanded with the growth of distant diaspora. For instance it would be highly likely the 647,000 displaced Somalis in Yemen are completely reliant upon this traditional form of Arab banking. Over 14 per cent of Somalis are living abroad, many contributing to the flow of financial remittances into this war-ravaged state. To date, western efforts to shut off Hawala channels to groups like Al Shabab have been clumsy and threaten to remove an essential form of life support to 40 per cent of Somali households as an unintended consequence.
Following the conference, the GCC states could make a leading contribution in the fight against piracy, one in which they never need fire a single shot. Instead of the delivery of conventional military force, the provision of local finance experts and law enforcement personnel to international money laundering task forces would give an added and valuable dimension to current multi-national efforts. This role would instantly address article 5 of the Dubai conference declaration which stated:
"The international counter-piracy effort increasingly highlights the role of those funding piracy operations and others involved indirectly in the financing of piracy. The effective tracking and disrupting of illicit financial flows is an important tool to deter acts of piracy and to apprehend and prosecute those who finance piracy." (Final Declaration 19 April, 2011)
By educating and advising their Western colleagues on Hawala channels, local experts could potentially deny this avenue to those who kidnap and murder innocent seafarers. As many countries have found when dealing with a terrorist menace, preventing financing through organised criminality provides an advantage in the campaign to defeat the criminals.
Yet the complexity of Somalia is such that unless Hawala channels are selectively shut down when clear evidence exists of criminal intent, we stand the risk of delivering a legion of poor and disenfrancised generation of Somalis into the arms of pirate warlords or their terrorist cousins.
With its growing reputation within the international banking community, the GCC can and should partially shoulder this burden of responsibility, so as to restrict the flow of illegal money to and from the pirates through Hawala channels.
Financial regulation and investigation are key parts of a comprehensive counter piracy strategy. To date, they have yet to be fully exploited by those who wish to rid the region of this insidious threat to life, global trade and legitimate commerce. The conference was an excellent example of the GCC's proactivity and it would now be fitting if something tangible was realised from its ground breaking agenda.
The stage is now set for the announcement of a focused policy to restrict those Hawala channels which support piracy and terrorism, while redoubling international efforts to bring peace and stability to Somalia after a generation of civil war.
David Mugridge is a maritime security consultant and former British Royal Navy officer
2024%20Dubai%20Marathon%20Results
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Babumoshai Bandookbaaz
Director: Kushan Nandy
Starring: Nawazuddin Siddiqui, Bidita Bag, Jatin Goswami
Three stars
Killing of Qassem Suleimani
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
'The Sky is Everywhere'
Director:Josephine Decker
Stars:Grace Kaufman, Pico Alexander, Jacques Colimon
Rating:2/5
SECRET%20INVASION
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Palestine and Israel - live updates
Company%20profile
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The specs: Macan Turbo
Engine: Dual synchronous electric motors
Power: 639hp
Torque: 1,130Nm
Transmission: Single-speed automatic
Touring range: 591km
Price: From Dh412,500
On sale: Deliveries start in October
Jewel of the Expo 2020
252 projectors installed on Al Wasl dome
13.6km of steel used in the structure that makes it equal in length to 16 Burj Khalifas
550 tonnes of moulded steel were raised last year to cap the dome
724,000 cubic metres is the space it encloses
Stands taller than the leaning tower of Pisa
Steel trellis dome is one of the largest single structures on site
The size of 16 tennis courts and weighs as much as 500 elephants
Al Wasl means connection in Arabic
World’s largest 360-degree projection surface
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
The biog
Hobby: Playing piano and drawing patterns
Best book: Awaken the Giant Within by Tony Robbins
Food of choice: Sushi
Favourite colour: Orange
Global state-owned investor ranking by size
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United States
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China
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UAE
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Norway
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Canada
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The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
Company profile: buybackbazaar.com
Name: buybackbazaar.com
Started: January 2018
Founder(s): Pishu Ganglani and Ricky Husaini
Based: Dubai
Sector: FinTech, micro finance
Initial investment: $1 million
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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Race card
4pm Al Bastakiya Listed US$300,000 (Dirt) 1,900m
4.35pm Mahab Al Shimaal Group 3 $350,000 (D) 1,200m
5.10pm Nad Al Sheba Turf Group 3 $350,000 (Turf) 1,200m
5.45pm Burj Nahaar Group 3 $350,000 (D) 1,600m
6.20pm Jebel Hatta Group 1 $400,000 (T) 1,800m
6.55pm Al Maktoum Challenge Round-3 Group 1 $600,000 (D) 2,000m
7.30pm Dubai City Of Gold Group 2 $350,000 (T) 2,410m
The National selections:
4pm Zabardast
4.35pm Ibn Malik
5.10pm Space Blues
5.45pm Kimbear
6.20pm Barney Roy
6.55pm Matterhorn
7.30pm Defoe
Dubai Women's Tour teams
Agolico BMC
Andy Schleck Cycles-Immo Losch
Aromitalia Basso Bikes Vaiano
Cogeas Mettler Look
Doltcini-Van Eyck Sport
Hitec Products – Birk Sport
Kazakhstan National Team
Kuwait Cycling Team
Macogep Tornatech Girondins de Bordeaux
Minsk Cycling Club
Pannonia Regional Team (Fehérvár)
Team Auvergne-Rhône-Alpes
Team Ciclotel
UAE Women’s Team
Under 23 Kazakhstan Team
Wheel Divas Cycling Team
Result
Tottenhan Hotspur 2 Roma 3
Tottenham: Winks 87', Janssen 90 1'
Roma 3
D Perotti 13' (pen), C Under 70', M Tumminello 90 2"
Terminal High Altitude Area Defense (THAAD)
What is THAAD?
It is considered to be the US' most superior missile defence system.
Production:
It was first created in 2008.
Speed:
THAAD missiles can travel at over Mach 8, so fast that it is hypersonic.
Abilities:
THAAD is designed to take out projectiles, namely ballistic missiles, as they are on their downward trajectory towards their target, otherwise known as the "terminal phase".
Purpose:
To protect high-value strategic sites, such as airfields or population centres.
Range:
THAAD can target projectiles both inside and outside of the Earth's atmosphere, at an altitude of 93 miles above the Earth's surface.
Creators:
Lockheed Martin was originally granted the contract to develop the system in 1992. Defence company Raytheon sub-contracts to develop other major parts of the system, such as ground-based radar.
UAE and THAAD:
In 2011, the UAE became the first country outside of the US to buy two THAAD missile defence systems. It then deployed them in 2016, becoming the first Gulf country to do so.
more from Janine di Giovanni
The Little Things
Directed by: John Lee Hancock
Starring: Denzel Washington, Rami Malek, Jared Leto
Four stars
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
ENGLAND TEAM
England (15-1)
George Furbank; Jonny May, Manu Tuilagi, Owen Farrell (capt), Elliot Daly; George Ford, Ben Youngs; Tom Curry, Sam Underhill, Courtney Lawes; Charlie Ewels, Maro Itoje; Kyle Sinckler, Jamie George, Joe Marler
Replacements: Luke Cowan-Dickie, Ellis Genge, Will Stuart, George Kruis, Lewis Ludlam, Willi Heinz, Ollie Devoto, Jonathan Joseph
FIXTURES
Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)
Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)
Friday, February 1
Final, Zayed Sports City Stadium (6pm)
