Hawala Banking

Today it is commonly referred to as underground banking which many say is an unfair term given that its services are mostly offered and carried out openly and legally.

Hawala banking. Currency is purchased and sold by dealers who are not authorized dealers authorized person means an authorized dealer money changer off shore banking unit or any other person for the time being authorized under sub section 1 of section. For the blue collar worker who transfers a monthly stipend of 100 the unofficial hawala is a far cheaper way to send money back home than the official banking system at a rate of around 1 percent of the amount transferred. Leiter der organisation soll ein düsseldorfer besitzer einer juwelierkette sein der in seinen juwelierfilialen und pfandhäusern in berlin das hawala banking geschäft betrieb.

To sum up hawala is a transfer of money without the movement of money. The term comes from arabic hawala ح والة which literally means bill of exchange assignment. Taking steps to reduce corruption.

Reduction of hindrances in the normal banking routes so that people willing to carry out genuine and legitimate transactions do not prefer the hawala route. One definition from interpol is that hawala is money transfer without money movement hawala is an alternative remittance. To ensure your money s safety the entire process is strictly governed by the same financial laws that regulate banking institutions.

Typically poorer individuals use the hawala system to take advantage of its low cost and fast delivery. In some us states pakistan india and several other nations hawala is illegal. Hawala is an illegal foreign exchange market where trading of currency happens outside the parallel black controlled financial channels i e.

It is often used either to avoid transaction fees or to avoid questions being raised about the money transferred. The hawala system is used by criminals because of the trust established within the group because it avoids high banking fees and because it is suitable for transfers to remote parts of the world. Hawala banking fälle in deutschland im november 2019 wurden bei einer bundesweiten razzia gegen illegales hawala banking geld fahrzeuge gold und schmuck im wert 22 millionen euro beschlagnahmt.

So in a way hawala works because it avoids the banking system. That means the transmission of money without standardized banking systems. Hawala is a method of transferring money without any actual movement.