Where did the idea of hawala come from?

Hawa la1 is an alternative or parallel remittance system. It exists and operates outside of, or parallel to ﬁtraditionalﬂ banking or financial channels. It was developed in India, before the introduction of Western banking practices, and is currently a major remittance system used around the world.

Is the hawala system used for money laundering?

This paper presents a description of the Hawa la (also referred to as hundi) alternative remittance system. Hawa la is an ancient system originating in South Asia; today it is used around the world to conduct legitimate remittances. Like any other remittance system, Hawa la can, and does, play a role in money laundering.

Which is the correct spelling hawala or Havala?

Hawa la, on the other hand, seems to be used almost exclusively in Indian journalism. In Iran, the term havala (also spelled î»AÌY as in Urdu) is used, this is the same as the word ﬁ Hawa laﬂ due to a difference in pronunciation of the letter ¸ (w in Urdu, v in Farsi).

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Frequently Asked Questions

Where did the idea of hawala come from?

Hawala1 is an alternative or parallel remittance system. It exists and operates outside of, or parallel to ﬁtraditionalﬂ banking or financial channels. It was developed in India, before the introduction of Western banking practices, and is currently a major remittance system used around the world.
Is the hawala system used for money laundering?

This paper presents a description of the Hawala (also referred to as hundi) alternative remittance system. Hawala is an ancient system originating in South Asia; today it is used around the world to conduct legitimate remittances. Like any other remittance system, Hawala can, and does, play a role in money laundering.
Which is the correct spelling hawala or Havala?

Hawala, on the other hand, seems to be used almost exclusively in Indian journalism. In Iran, the term havala (also spelled î»AÌY as in Urdu) is used, this is the same as the word ﬁHawalaﬂ due to a difference in pronunciation of the letter ¸ (w in Urdu, v in Farsi).