rating: 0+x

Function: Noun

Hawala is an ‘Informal Value Transfer System’ within different countries based on Performance and Honor of a huge network of money brokers.

As these transfers are informal and not effectively regulated by government prove advantageous to the customers with tax, currency control and other legal concerns. This system probably originated in the financing of long distant trade in the early medieval period. But today in the globalize world mostly used by the migrant workers remittances to their countries of origin. (Connection: Diaspora).
Hawala has been made illegal in some countries as it is seen to be form of money laundering and terrorist funding. (Based on text from Wikipedia)

Below is a sample chart extracted from Interpol website which is actually ‘Hawala Bookkeeping’ where the 1st column indicates the date, 2nd the name of Hawala broker to whom the debt is owned, 3rd column is amount of debt, 4th is the dollar/rupee exchange rate for transaction, 5th is value in dollars and the 6th is the way in which the payment is made.


image source Interpole wesite

Tag this site in del.icio.us del.icio.us.

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License