Difference between revisions of "Hawala (Middle East, India and Pakistan)"

Hawala (Middle East, India and Pakistan) (view source)

Revision as of 01:02, 16 June 2015

76 bytes added , 01:02, 16 June 2015

→‎Model of Simple Hawala Transfer

Admin

Supervisor, Bureaucrats, Interface administrators, Administrators

5,669

edits

@@ Line 37: / Line 37: @@
 ==Model of Simple Hawala Transfer==
+‎[[File:Simplehawala.gif|400px|thumb|right|Model of Simple Hawala Transfer]]''Hawala'' persists due to a number of reasons, which include; anonymity, cultural friendliness <ref>Chene, M. 2008. Hawala remittance system and money laundering, U4 expert answer, U4 Anti-Corruption Resource Centre.  Obtained through the Internet: http://www.u4.no/helpdesk/helpdesk/query.cfm?id=170, [accessed 17/4/2009]</ref>, low transaction costs <ref>Maimbo, S. 2003. The Money Exchange Dealers of Kabul. Washington, D.C.: The World Bank.</ref>, less transit time <ref>Schramm, M., & Taube, M. 2002, June. ‘The institutional foundations of Al Qaida’s global financial system’. In DIW Workshop “The Economic Consequences of Global Terrorism”</ref>, enhanced level of trust versus banks and other conventional channels <ref>Schramm, M., & Taube, M. 2002, June. ‘The institutional foundations of Al Qaida’s global financial system’. In DIW Workshop “The Economic Consequences of Global Terrorism”</ref>, and increased efficiency<ref>Ballard, R. 2005b. ‘Remittances and economic development in India and Pakistan’. In S. Maimbo, & D. Ratha (Eds.), Remittances: Development Impact and Future Prospects. Washington, D.C.: World Bank</ref>.
-''Hawala'' persists due to a number of reasons, which include; anonymity, cultural friendliness <ref>Chene, M. 2008. Hawala remittance system and money laundering, U4 expert answer, U4 Anti-Corruption Resource Centre.  Obtained through the Internet: http://www.u4.no/helpdesk/helpdesk/query.cfm?id=170, [accessed 17/4/2009]</ref>, low transaction costs <ref>Maimbo, S. 2003. The Money Exchange Dealers of Kabul. Washington, D.C.: The World Bank.</ref>, less transit time <ref>Schramm, M., & Taube, M. 2002, June. ‘The institutional foundations of Al Qaida’s global financial system’. In DIW Workshop “The Economic Consequences of Global Terrorism”</ref>, enhanced level of trust versus banks and other conventional channels <ref>Schramm, M., & Taube, M. 2002, June. ‘The institutional foundations of Al Qaida’s global financial system’. In DIW Workshop “The Economic Consequences of Global Terrorism”</ref>, and increased efficiency<ref>Ballard, R. 2005b. ‘Remittances and economic development in India and Pakistan’. In S. Maimbo, & D. Ratha (Eds.), Remittances: Development Impact and Future Prospects. Washington, D.C.: World Bank</ref>.
 ‘Underground banking’ is a core term widely used to describe ''hawala''. This term, however, is inherently fallacious.  The actual transfer process rarely involves any banking procedures. It is structured more as an exchange on open accounts between two or more individuals <ref>Passas, N. (1999). Informal value transfer systems and criminal organizations: A study into so-called underground banking networks. Netherlands Ministerie Van Justice, The Hague, Netherlands. Obtained through the Internet: http://www.minjust.nl:8080/b_organ/wodcpublications/ivts.pdf [accessed 1/5/2003].</ref>. For these reasons, ‘underground banking’ is a misnomer and incorrectly implies a submerged activity of illegality and corruption. Another term coined by media hype is ‘black ''hawala''’, which alludes to illegal ''hawala'' transactions <ref>Jost, P. and  Sandu, H. S. 2000.  The Hawala alternative remittance system and its role in money laundering.  Interpol General Secretariat, Lyon.</ref>.  However, for some critics, ‘black ''hawala''’ has come to define all ''hawala'' transactions. This is typical of the partisan thrust of many present day media commentaries.