Hawala, an ancient banking system that originated in the Mid- at http:/ /www. In essence, hawala is a transfer or remittance from one party to another, without In the case of India, Interpol places the size of hawala at possibly 40 percent of . One de nition from Interpol is that Hawala is “money transfer without money movement.” Hawala originated in Asia during ancient times, and is used in many.

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Briefing Note – The Hawala System & The International Monetary Fund

Borochovitz, Eldad Bozna, Menachem Comm. The words aval intwrpol avallo were themselves derived from hawala. The system is ideal for use in isolated localities like the tribal areas of Pakistan and Afghanistan, where formal financial institutions are rare. Inspector Steinbach, Michael B. This enables criminal elements to use financial inducements to persuade officials to bypass banking laws. Financial investigators tracking al-Qaeda assets rely heavily on data and paper trails from commercial banks and financial regulators in pursuing and investigating leads.

Hawala: The Terrorist’s Informal Financial Mechanism

Popovich, Elad Price, Bryan C. Ryan Smith Sabol, Jozef Dr. For the Convention see: Sharon, Omri Shavit, Michal Dr. It would remain so even if there were no terrorist international transfers, drug trade or money laundering. First, IFT is anonymous. Views Read Edit View history. Yaari, Ehud Yaffe, Aharon Dr. Res Bennett, Naftali H. El-Qorchi also notes that h awala hawalz a fiscal consequence, as tax is not paid on the remittance reducing the revenues of the remitting and receiving countries.


Turgeman, Shlomo “Sami” Maj. In receiving countries like India, there is in addition the subtler potential clash between hawala operation and exchange controls.

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Chaulia, Sreeram Chayot, Eran Dr. GunaratnaRohan Prof. This page was last edited interlol 5 Decemberat The person sending the funds from Country Inteprol to a beneficiary in Country B deals only with the hawalandar who provides the customer with an authentication code which the customer transmit to his beneficiary.

The ability of those operating outside of the laws of civil society to use their ill-gotten gains to finance their continued illicit activities damages economies.

Internet / Home – INTERPOL

Online Course Oren, Michael Amb. There is no need for paper evidence as the transaction could take place orally or even through the internet in a chat room. If those countries had reasonably expedient, well-regulated and user-friendly banks, then the hawala hawaka would not have flourished and would not have been abused by terrorists and criminal elements.


Manciulli, Andrea MP H. The advantages of IFTs are numerous, and thus within the context of this briefing note, only a few would be mentioned.

Hoeft, Gabriel Hoffman, Aaron Prof. Fourth, the system is cheaper, as the hawalandars although charging a fee or commission 0.

Hawala: The Terrorist’s Informal Financial Mechanism | Middle East Policy Council

However, before highlighting the major ones, it needs to be noted that the absence of central authority or weak central authority facilitates the rise of hawala and other ITFs. It also has a global-reach knterpol it facilitates the sending of funds from one side of the globe to the next.

Ramana, Siddharth Ranstorp, Magnus Dr. Its aim was to combat the increasing threat that money laundering posed the banking system and financial institution. The unique feature of the system is that no promissory instruments are exchanged between the hawala brokers; the transaction takes place entirely on the honour system.