HAWALA AND A FINCEN GUIDE TO HAWALA

On 16th September, the Target Letter Law website published an article on Halawa, the trust-based informal value transfer system (sometimes called parallel banking) that is widely used for perfectly legitimate purposes across parts of South Asia, West Africa, and the Middle East, and for facilitating transactions between communities there and people in other parts of the world, like Europe and North America.  It says that tts attraction to money launderers and terrorist financers is driven in large part by the difficulty of tracing the transactions and the limited means of regulatory enforcement.  It also points out that hawala is generally unlawful in countries like Pakistan and India, and in some US states.

https://www.targetletterlaw.com/2018/09/16/financing-terrorism-through-the-halawa-system/

It also provides a link to a FinCEN guide on hawala –

https://www.treasury.gov/resource-center/terrorist-illicit-finance/Documents/FinCEN-Hawala-rpt.pdf

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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