WHAT IS HAWALA?

On 9 August, a port from The Balance explains hawala, saying that it is an ancient money transfer method originating in SE Asia.  The system can be used for legitimate money remittance in global transactions. Hawala, along with other alternative money transfer systems, are sometimes categorised as a form of underground banking because it is often used in illegal money laundering operations.  The term “hawala” means “transfer” in Arabic, and a “hawaladar” is the broker who facilitates the movement of money.  The post explains that it is not the only alternative money remittance system in existence. Similar means of transferring money outside the regular banking system exist in China, Hong Kong, the Philippines, and Thailand, though they go by different names.

https://www.thebalance.com/what-is-hawala-5197853

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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