Gulf banks laundering pirate booty -paper

Gulf banks are being used by organised pirate syndicates to launder millions of dollars taken as ransom from vessels hijacked off in the Gulf of Aden, the UK’s Independent newspaper reported on Tuesday.

Investigators hired by the shipping industry told the newspaper around $80 million was paid out by shippers last year, much of which finds its way to piracy “godfathers” based in the Gulf and African countries such as Kenya.

Investigators said these “godfathers” include businessmen from Somali and the Gulf region, as well as nationalities from the Indian subcontinent.

"There is evidence that syndicates based in the Gulf play a significant role in the piracy which is taking place off the African coast," Christopher Leger, a former Royal Marine officer and director of Idarat Maritime, was quoted as saying.

Idarat specializes in maritime protection and is working with underwriters Lloyd's to come up with safeguards for shippers.

"There are huge amounts of money involved and this gives the syndicates access to increasingly sophisticated means of moving money as well as access to modern technology in carrying out the hijackings."

Source: Maktoob Business