Chinese National Arrested For Running Hawala Network In Zimbabwe, US$192,000 Recovered

Hawala Network Busted: Chinese Businessman Charged With Money Laundering

A Chinese national has been arrested and a large sum of money recovered after police busted an alleged illegal Hawala banking network in Harare. Ke Ji Xiao appeared in court on Monday, 2 December 2025, facing charges of money laundering and breaking Zimbabwe’s strict exchange control laws.

The court heard that US$192,575 (approx. R3.5 million) in cash was seized from his premises in the affluent suburb of Alexandra Park. This followed a targeted police operation aimed at dismantling informal money transfer systems.

Operation Pressure Valve Uncovers Alleged Scheme

The Herald reports that the arrest was a direct result of “Operation Pressure Valve,” a crackdown led by the CID Asset Forfeiture Unit. Prosecutor Rufaro Chonzi detailed the events in court, explaining how intelligence led detectives to a house on Maarsdop Avenue.

He stated that the operation’s goals were broad, targeting various financial and fuel-related crimes. Mr Chonzi told the Harare Magistrates Court:

“The operation focused on inspecting fuel and LPG retail sites, cracking down on the illegal Hawala system, verifying compliance with licensing processes, and disrupting money laundering and courier syndicates.”

Acting on a tip-off, detectives raided the address on 29 November. They allegedly found evidence pointing to a sophisticated underground banking operation run from the property.

Cash And Paper Trail Seized As Evidence

The search of the Alexandra Park house proved fruitful for investigators. Police not only found a significant hoard of foreign currency but also a collection of documents they say outline the illicit business.

Prosecutor Chonzi presented the findings to the magistrate, saying:

“A search conducted at Ke’s premises uncovered receipts, registers, and bills of entry, which investigators allege point to his involvement in Hawala activities. Additionally, cash totalling US$192,575 (approx. R3.5 million) was recovered and is being held as evidence.”

The prosecution’s case hinges on the claim that Ke Ji Xiao operated outside the formal financial system. They allege he accepted local cash from clients and then arranged for corresponding payments or goods to be delivered in China, completely bypassing the Reserve Bank of Zimbabwe (RBZ).

Mr Chonzi elaborated on the specific charges, telling the court:

“Instead of routing payments through the RBZ Exchange Control Department, Xiao is accused of directly paying foreign suppliers, thereby violating the country’s exchange control laws. Ke could not account for the source of the seized cash, raising further suspicions of money laundering.”

Regional magistrate Mrs Marehwanazvo Gofa granted Ke Ji Xiao bail set at US$1,000 (approx. R18,000). A key condition of his release was the surrender of his passport to the authorities. The case is set to continue as the state prepares its evidence.