hawala

Thân thiện

A merchant uses hawala to send funds to his family abroad.

Definition

Noun: 1. An informal value transfer system: A traditional, trust-based method of transferring money or value across geographical distances without the physical movement of currency or the use of formal banking channels. It operates on a network of brokers (hawaladars) who settle balances through various means, often leaving minimal official records of the transactions.

Usage

The term "hawala" is used to describe the system itself or a specific transaction within that system. It is often discussed in contexts related to remittances, informal economies, and financial regulation. - Many migrant workers use hawala to send money back to their families because it is faster and cheaper than traditional banks. - The investigation focused on the hawala network used to finance the operation.

Advanced Usage

• "Hawala system" / "Hawala network": Refers to the entire operational structure of brokers and their connections.
  • Authorities are attempting to map the international hawala system.
• "Hawala transaction": A specific instance of money transfer via this method.
  • The payment was completed via a hawala transaction.

Variants and Related Words

• Hawaladar (noun): A broker or agent who facilitates hawala transfers.
  • The hawaladar in Karachi contacted his counterpart in Dubai to complete the transfer.

Synonyms

• Informal funds transfer system
• Underground banking (This synonym carries a stronger connotation of illegality, whereas "hawala" can be used for both licit and illicit transfers.)

Different Meanings / Contexts

While the core mechanism remains the same, the context determines its legal and social perception: 1. Licit Use: A legitimate, efficient, and culturally established method for remittances, especially in regions with limited banking infrastructure. - For centuries, hawala has been a vital part of commerce in South Asia and the Middle East. 2. Illicit Use: Can be exploited for money laundering, terrorist financing, or tax evasion due to its anonymity and lack of formal oversight. - The report highlighted the risks of hawala being used to circumvent financial sanctions.

Học thuật

Noun

1. an underground banking system based on trust whereby money can be made available internationally without actually moving it or leaving a record of the transaction
   • terrorists make extensive use of hawala