Hawala

An alternative remittance channel that exists outside of traditional banking systems. Hawala is a method of transferring money without any actual movement. One definition from Interpol is that Hawala is "money transfer without money movement." Transactions between Hawala brokers are done without promissory notes because the system is heavily based on trust.

Hawaladars, or Hawala dealers, arrange money transfers that are often backed only by trust, family connections or regional relationships. Hawala originated in South Asia during ancient times, and is used throughout the world today, particularly in the Islamic community as an alternative means of conducting funds transfers. Hawala is frequently referred to as underground banking, which is a misnomer because Hawala services often operate openly and legitimately.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Hawala — (also known as hundi) is an informal value transfer system based on performance and honor of a huge network of money brokers which are primarily located in the Middle East, Africa and Asia.OriginsHawala has its origins in classical Islamic law,… …   Wikipedia

  • Hawala — Das Hawala Finanzsystem (arabisch ‏حوالة‎, DMG Ḥawāla, von ‏حَوَّلَ‎ / ḥawwala /‚wechseln, überweisen‘; Hindi: Vertrauen; auch der moderne Begriff Avalkredit bezieht sich darauf) ist ein weltweit funktionierendes informelles… …   Deutsch Wikipedia

  • Hawala — El hawala(en árabe حوالة) (también conocido como hundi) es uno de los sistemas de transferencia informal de fondos (TIF) que son generalmente utilizados en muchas regiones del ámbito local e internacional. Hawala significa “transferencia” o… …   Wikipedia Español

  • Hawala — Un Hawala, ou Hundi, est un système traditionnel de paiement informel distribué. Son origine exacte n est pas déterminée, mais il semble être apparu comme moyen de financement du commerce sur les grandes routes d échange (comme la route de la… …   Wikipédia en Français

  • Hawala — El hawala es uno de los sistemas de transferencia informal de fondos (TIF) que son generalmente utilizados en muchas regiones del ámbito local e internacional. Hawala significa “transferencia” o “cable” en la jerga bancaria árabe. El sistema… …   Enciclopedia Universal

  • hawala — [ha wα:lə] noun a traditional system of transferring money used in Arab countries and the Indian subcontinent, whereby the money is paid to an agent who then instructs an associate in the relevant area to pay the final recipient. Origin from Arab …   English new terms dictionary

  • hawala — noun 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 • Topics: ↑terrorism, ↑act of… …   Useful english dictionary

  • hawala — noun A long established, informal system of money transfer from India and the Middle East, still in use by migrant workers …   Wiktionary

  • hawala — Inglish (Indian English) Dictionary undocumented foreign exchange transactions (not legally permitted) …   English dialects glossary

  • hawala —  adj. Se dit d un système de transaction financière anonyme …   Le dictionnaire des mots absents des autres dictionnaires

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