Hawala

Hawala is an informal value transfer system used to transfer money between parties without involving banks. It is based on the trust between the hawaladar (the person who facilitates the transfer) and the customer. The hawaladar acts as an intermediary between the two parties and charges a fee for the service.

Hawala is often used to transfer money to countries where there are no banks or where the banking system is not reliable. It is also used to transfer money for personal reasons, such as to pay for education or medical expenses.

The hawala system is not regulated by any government or financial institution. This makes it difficult to track and can be used for money laundering and other illegal activities. However, hawala can also be used for legitimate purposes and is an important part of the informal economy in many countries.

Here are some of the key features of hawala:

* It is an informal system that is not regulated by any government or financial institution.
* It is based on the trust between the hawaladar and the customer.
* It is used to transfer money between parties without involving banks.
* It is often used to transfer money to countries where there are no banks or where the banking system is not reliable.
* It can be used for both legitimate and illegal purposes.

Hawala is a complex system that is difficult to understand. However, it is an important part of the informal economy in many countries and plays a significant role in the transfer of money around the world.