Hawala (Noun)
Meaning
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".
Classification
Nouns denoting groupings of people or objects.
Examples
- The hawala system has been used for centuries in the Middle East and South Asia to facilitate international transactions without the need for traditional banking.
- Law enforcement agencies have been working to disrupt hawala networks used by terrorist organizations to finance their operations.
- The lack of regulation and oversight in the hawala system makes it vulnerable to abuse by money launderers and other illicit actors.
- In some countries, hawala is a widely accepted and legitimate means of transferring money, particularly for people who do not have access to traditional banking services.
- The use of hawala by terrorist groups has made it a key target for international efforts to combat the financing of terrorism.