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A system or agency for transferring money traditionally used in the Muslim world, whereby the money is paid to an agent who then instructs a remote associate to pay the final recipient.
- ‘In the hawala system, which requires complete trust, a money broker collects funds at one end of the operation in a country, while another broker in another country, often from the same clan, distributes the funds at the other end.’
- ‘Money laundering in the Indian Ocean basin relies upon a traditional alternative banking system known as hawala or hundi, which makes it difficult to trace money transfers.’
- ‘U.S. aid and a crackdown on invisible hawala money transfers lifted Pakistan's economy.’
- ‘To move large sums of money, they can avoid the banking system by using hawala money movers or couriers.’
- ‘Many schemes - including the hawala money-transfer networks in South Asia and the Mideast - use unrelated accounts in different countries, making them hard to shut down.’
From Arabic, literally change, transform.
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