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Difference between revisions of "Hawala (Middle East, India and Pakistan)"
Hawala (Middle East, India and Pakistan) (view source)
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An alternative term is ''hundi'', a word which is etymologically rooted in Sanskrit and means ‘to collect’. This meaning is synonymous with promissory note, bill of exchange, or ''hawala''. A ''hundi'' operator is referred to as a ''hundiwala''. | An alternative term is ''hundi'', a word which is etymologically rooted in Sanskrit and means ‘to collect’. This meaning is synonymous with promissory note, bill of exchange, or ''hawala''. A ''hundi'' operator is referred to as a ''hundiwala''. | ||
Padayachee and MorrelL define ''hundi'' as: | Padayachee and MorrelL define ''hundi'' as:<ref>Padayachee, V., Morrell, R. 1991. ‘Indian merchants and dukawallahs in the natal economy’. Journal of South African Studies, 17 (1): 71-102.</ref> | ||
<blockquote>“A kind of bill of exchange or written order for payment that its drawers used much in the same way that the Americans used checks to draw on their checking accounts. In order to draw a Hundi, a client had to open up an account and maintain a correspondence relationship with a [private] banker.” | <blockquote>“A kind of bill of exchange or written order for payment that its drawers used much in the same way that the Americans used checks to draw on their checking accounts. In order to draw a Hundi, a client had to open up an account and maintain a correspondence relationship with a [private] banker.”</blockquote> | ||
Essentially, ''hawala'' and ''hundi'' have the same meanings and are used interchangeably, especially now that the system has gained international notoriety. However, ''hawala'' is an Arabic term while ''hundi'' is its Indian and Pakistani variant. It has been suggested that ''hundi'' and ''hawala'' have amalgamated into one network and their distinctions have been dissolved <ref>Jost, P. and Sandu, H. S. 2000. The Hawala alternative remittance system and its role in money laundering. Interpol General Secretariat, Lyon.</ref>. | Essentially, ''hawala'' and ''hundi'' have the same meanings and are used interchangeably, especially now that the system has gained international notoriety. However, ''hawala'' is an Arabic term while ''hundi'' is its Indian and Pakistani variant. It has been suggested that ''hundi'' and ''hawala'' have amalgamated into one network and their distinctions have been dissolved <ref>Jost, P. and Sandu, H. S. 2000. The Hawala alternative remittance system and its role in money laundering. Interpol General Secretariat, Lyon.</ref>. | ||