11/18/2016

(1)HowdoestheHawalasystemoftransferringmoneywork?Quora

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Whydoesn'tthehawalasystemfail?Orwhyisthere
nocheatinginthis?

FaisalKhan,CrossBorderMoneyTransferSpecialist
WrittenJan17,2014

Hawalaisamuchdebatedissue.InadditiontotheanswergivenbyVrindaKumaryou
alsoneedtobecognizantthatHawala'sbasicdefinitionissomethingthatmanyregulators
debateandoftendisagreeon.Somethingthatmaybeillegalinonecountry,becomeslegal
inanother.Strictlyspeaking,eventheFinancialActionTaskForceinitsvariousmeetings
hasdebatedthissubjecttoalargedisagreewithoutcomingtoaglobalconsensusasto
whatHawalais.(SeeFinancialActionTaskForce(FATF) )
MostagreethatatitsbasicpremiseHawalaistheundocumentedtransferofmoney.Most
ofthehawaladonenowisbasedonnetoffbasis.Ifsomeonewantstosend$1000fromUS
toBangladeshandviceversa,thehawalasystemwouldnetoffthetransactionandprovide
moneytobothparties.

WhatistheHawalasystemandhowdotheycarryout
theirmoneytransactions?
Givenextremecorruptionandpossiblyeventhe
terrorismthatitpromotes,whydoauthoritiesnotban
theHawalasystemoftransferringmoney?...
Howmuchblackmoneywastransferredthrough
Hawalatransactions?
WhatisHawala'smoney?Howisitrelatedto
terrorismandinsurgency?
WhatisHawala?AndwhatistheHawalascandal?

Liquidityisthemainissuehereforthoseoperatingonnetoffbasis.Besidesthis,oneway
transfersworkinahugemanner.IfsomeoneIcanacceptthe$1000intheUS(underthe
radar),andpayoutinPakistan(alsoundertheradar),thenthetransactionistreatedasa
hawala.Itisallaboutnotgettingthemoneyinthedocumentedfield,sothattaxationor
sourceoffundingisnotquestioned.Inmanycountries,thereareinherenttaxbenefitsby
surrenderingyourforeigncurrencyandgettingpaidinlocalcurrency(Pakistanfor
examplehasthislaw),whichisusedalotlegally,forhawalapurposes.
Foranyhawalatransactiontowork,youneedademandforthecurrencyinboththe
countries.
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Whataresimilarities/differencesbetweenhawala
moneytransferandacurrencyswap?
Whatishawalamoney?
HowhasHawalaSystemfueledillicitarmstradesand
terroristactivitiesacrosstheglobe?
HowdoIfindhawalamoney?
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SuryatejaRokkam,Moneyislikesex:themoreofituhave,thelesslikelyu
aretoobsessaboutit
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Kartik

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WhatdoesHawalaactuallymean?
HawalaorHewalainArabic()meanstransferorsometimestrust.

ItalsoknownashundiorinSomali,xawalaorxawilaad
WhatdoesthewordHawalameanwhichwehear/readinNewspapers/TV
shows?
Itisapopularandinformalvaluetransfersystembasedontheperformanceandhonour
ofahugenetworkofmoneybrokers,primarilylocatedintheMiddleEast,NorthAfrica,
theHornofAfrica,andtheIndiansubcontinent,operatingoutsideof,orparallelto,
traditionalbanking,financialchannels,andremittancesystems.Dubaihasbeenstanding
outfordecadesasawelcominghubforhawalatransactionsworldwide.
Toputitsimply,itisillegal/informaltransferofmoneywithoutmovingitphysically,
leavingnotracesorevidences.
WhatstheoriginofHawala?

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11/18/2016

(1)HowdoestheHawalasystemoftransferringmoneywork?Quora

Thehawalasystemhasexistedsincethe8thcenturybetweenArabicandMuslimtraders
alongsidetheSilkRoad.
Thepracticestartedasawaytoprotecttradersfromtheft.
Itbecamemoreprevalentafterthedevelopmentoflongdistancetradearoundthe
emergingcapitaltradecentersintheearlymedievalperiod.
InSouthAsia,itappearstohavedevelopedintoafullyfledgedmoneymarketinstrument
(easilyliquidable),whichwasonlygraduallyreplacedbytheinstrumentsoftheformal
bankingsysteminthefirsthalfofthe20thcentury.
Whoarethecurrentusersofthisinformalnetwork?
Migrantworkers
Terrorists(tofundtheiractivities)
Politicians
Underworld/druglords
Howdoesitactuallywork?
HawaladarsorHawalaagentsarethebackboneoftheHawalaprocess.Theyarethe
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agentspresentallaroundtheworldhelpingtheircustomerstransfermoneyquickly.
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LetssayMrAinDubaiwantstotransfer1lakhriyaltohisbrotherinlawsayMrBin
Kochi.
1.NowAcontactsX,whoisahawaladarinDubaiandgiveshim1lakhriyalandalsoa
password.

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(1)HowdoestheHawalasystemoftransferringmoneywork?Quora

2.NowXcontactsY,anotherHawaladar(hiscounterpart)inKeralaandaskshimto
pay1lakhriyal(inlocalcurrencyinthiscaseRupees)afterdeductingthecommission
whichisusually2%.
3.BwouldbeinformedbyAaboutthethepassword.
4.NowBwillcontactY,tellsthepasswordandcollectsthemoney(2%commissionis
deducted)
5.NowXowesYmoneywhichissettledlater.
HowdoestheHawaladargetMoneyformakingthepayments?
Inmanycases,Hawalaagentsorbrokersrunsomebusinessotherthanthehawalaagency.
Sotheyhavesurplusofliquidmoneyinhandtocarryoutthetransactions.
Typically,hawalabrokersarebusinesspartnersengagedinimportandexportofgoods.A
hawalabrokermaybepayingoffthecostofgoods,bygivingmoneytothebeneficiary.
Sometimes,thehawalabrokersmaybeengagedinillegaltransferofgoodslikedrugsor
preciousgemsandjewellery.
Tomovegoodsillegallytheywouldprintaninvoicewithlessermoneythantheactual
value.Whenahawalaoperatorpaysarecipient,hemightbeactuallypayingoffthedebt
owedbyhimtotheoperator.(Insimplewords,thisfrontendimportexport
businessisthebackchannelforthetransferofillegal/hawalamoney.)
Thehawalaagentskeepatallyofthemoneythattheyowetoeachother.Oncethe
settlementisdone,theydontkeepanyrecordofthattransaction,makingthehawalavery
difficulttotrace.
Hawalabrokersmaybeclosefriendsorrelatives,makingthemoneytransferhappen
smoothly.Quiteoften,thehawalabrokerswhoaretakingpartinatransactionsitdistant
apart.Theyusuallycommunicatethroughmobilephoneorsatellitephoneoremailand
mostofthetransactionshappenwithoutmeetingtheotherperson.
WhydopeopleuseHawala?
FastandconvenientUsuallytakes12daysforatransactiontobecompleted
Toavoidtax
Lowcommissionratescomparedtothehighrateschargedbybanks
EaseofusageYouneednotfillforms,submitproofs,sractchyourheadaboutthe
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exchangeratesandtrackthetransactionwhichiscommonintradtionalbanking.

TheAnonymityfactorSincenoofficialrecordsaremaintained,thesourceofthe
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moneycannotbetraced.ThisbenefitisexploitedbyTerrorists,Smugglersandother
antisocialelements.

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MoneylaunderingToconvertblackmoneytowhitemoney
ReliableInternationalmoneytransfersystemworkingisreallycomplexwiththe
correspondentbanks.Itisarealheadachetotrackthemoneyincaseofsomemistake.
Andalsoasthehawalabrokerinmostofthecasesispersonallyknowntoyouthe
trustfactorishigher.
WhoaretheseHawaladars?
Hecanbeataxidriver,localbusinessman,importexportdealer,videoshopowner
someoneusuallywithalowprofilebutverygoodconnections.
HowmuchmoneydoestheHawaladarsmake?
AmidscalehawalaagentearnsaprofitofRs11.25lakhdailyandhisbusinesswillbe
intherangeofRs4croredaily.Hisoperationsisrunfromasmallofficewithacouple
oflandlineconnections,atelephoneoperator,awriterfortakingdownpaymentdetails,
twothreedriversfordoorstepcollections,awatchmanandacook.InIndia,hewould
eitherhavesubagentsorateamof2030distributionagentsfordoorstepdelivery.
ManyinKeralabelievethathawalaisnotjustpureeconomicsit'salsoa
socialsystem.AhawalaagentoperatingoutofDubaiexplainsthedynamics."A
workergetsjustoneweeklyoffonFriday.Itistheweeklyoffforbanksandmoney
transferagencies.Theworkerjustgivesusacallandwecollectmoneyfromhis
doorstep.Intimesofneed,orfamilyemergency,hecanborrowmoneyfromusandwe
delivermoneyimmediatelytohishome.Whichbankingormoneytransferagencywill
providesuchservicesandcredit?It'salltrust,noelaboratepaperwork."Thehawalalink
togoldsmuggling
WhydotheHawaladarsgetinvolvedinsuchariskybusiness?

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(1)HowdoestheHawalasystemoftransferringmoneywork?Quora

Everheardoftherisk/returntradeoffconceptwhichsaysthatthehigherriskgivesusthe
possibilityofhigherreturns.Therearenoguarantees.Buthawalaisafoolproofbusiness
wherereturnsaremostofthetimeshigher.
Itisthemostcostefficientremittancemethodtotransfermoney(mostly
unaccountable).Andyouwillalwayshavecustomerswhoarelookingforsucha
method.Sopopularandprofitable.
EasytosetupaHawalaagency.Youdontactuallyneedtoinvestininfrastructure.
Inadditiontocommissions,hawalabrokersoftenearntheirprofits
throughbypassingofficialexchangerates.Generally,thefundsenterthe
systeminthesourcecountry'scurrencyandleavethesystemintherecipientcountry's
currency.Assettlementsoftentakeplacewithoutanyforeignexchangetransactions,
theycanbemadeatotherthanofficialexchangerates.
HowmuchmoneyisusuallytransferredviaHawala?
Estimatingthesizeofhawalaandothersimilartransactionscannotbeundertakenwith
anyreliability.
AccordingtoGretchenPetersinherbookSeedsofTerror,economistsputthetotal
hawalatransfersworldwideatabout$100billionperyear.$100billiondollars!
Mostofthosetransactionsarenonthreatening.Butthereisalsoahugeopportunityto
profitfromblackhawalatheillegaltransferofmoney.Becausehawalalacks
transparency,criminalsandterroristsarealsoattractedtotheundergroundfinancial
system.Forexample,TheWorldBankandUNcalculatethathawaladealersin
HelmandandKandaharalonemove$1billionindrugmoneyeveryyear.Underground
finance:Whatsthedanger?
HowDubaibecamethehubofhawalatransactions?
Hawalabrokersarepresentinalmostallovertheworld.ButDubaiisknowntobethe
hubofhawalatransactionswheretherealestatehasthenotorious
reputationasthefrontforthehawaladealings.
ForexampleDubaiwitnesseditsbubblebetween2004and2008whenpricesandrents
roseby20percenteachmonth,drivenpurelybyspeculationandnotbyactualunderlying
demand.(moneycamefromthehawalasystem)
UnitedArabEmiratesisnotsomuchawashwithvastoilwealthbutbuiltonatoxictideof
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illicitcash:aplacewhereRussianmafiaanddrugcartelscleantheirdirtycashand
alQaidafinancesterroratrocities.AndatitsheartisDubai,aworldfinancialcentrethat
inthepast15yearshasgrownexponentially.
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AccordingtoindustrysourcesinDubai,closeto$100millionmovesfrom
IndiatoDubaieverysingleday!
Thismoneyusesthe'hawala'route,aninformalmoneytransfersystem,whererupee
getsconvertedtodollaratapremiumtomarketexchangerates.Intheprocess,Indian
blackmoneyisinvestedinDubaiproperty.AndsinceDubaichargesnotaxonrental
incomeoranycapitalgainsforpurchasedproperty,cashrichIndiansknowtheir
investmentsaresafe.
ThefactthatcashbuyersdominateDubai'spropertymarketisalsoevidentfromthe
datareleasedbytheDubaiLandDepartment,whichshowedpropertyworth8.4billion
UAEdirhamswassnappedupbycashbuyersinthefirstthreemonthsofthisyear.In
contrast,just1.99billionUAEdirhamsworthofassetswerepurchasedusingmortgages.
ThiscomesdespitemortgageprovidersintheUAEslashinginterestratesandbanks
increasingfundingoptions.
MoreovertheEscrowlawaddsanotherlayerofprotectiontoinvestors.Thelawensures
thatthemoneypaidbythem,whetherininstallmentsorupfront,goesintoanescrow
accountagainstwhichadeveloperonlywithdrawsumsproportionatetothe
constructionthathehasundertaken.Hence,investorsareprotectedfromproject
cancellations,delaysandlossofinvestments.Blackmoneyparadise:CashrichIndians
simplyloveDubaiFirstpost
Post9/11crackdownonHawalanetworks
AftertheSeptember11terroristattacks,theAmericangovernmentsuspectedthatsome
hawalabrokersmayhavehelpedterroristorganizationstotransfermoneytofundtheir
activities,butthe9/11CommissionReportsinceshowedthatthebulkofthefundswere
insteadsentbyanofficialinterbankwiretransfer.
AsaresultofintensepressurefromtheU.S.authoritiestointroducesystematicantimoney
launderinginitiativesonaglobalscale,anumberofhawalanetworkswerecloseddown
andanumberofhawaladarsweresuccessfullyprosecutedformoneylaundering.

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(1)HowdoestheHawalasystemoftransferringmoneywork?Quora

WhiteHawala
Expertsemphasizedthattheoverwhelmingmajorityofthosewhousedthese
informalnetworksweredoingsoforlegitimatepurposes,andsimplychoseto
useatransactionmediumotherthanstatesupportedbankingsystems.
Today,thehawalasysteminAfghanistanisinstrumentalinprovidingfinancialservicesfor
thedeliveryofemergencyreliefandhumanitariananddevelopmentalaidforthemajority
ofinternationalanddomesticNGOs,donororganizations,anddevelopmentaidagencies.
BlackHawala
Moneyusedforfundingterroristactivities
Onestudyassertsthat10percentofallhawalatransactionsinIndiago
towardfundingterrorism,andthat30percentofterroristsmoneycomes
fromhawala.MuchofitistransferredfromtheGulf(includingDubai)to
Kerala.
Amajorchunkofterrorfundingisfromfakecurrency.
Moneylaundered(toconvertblackmoneytowhitewiththehelpofrealestate
transactionsandimportexporttrade.
Moneyearnedfromdrugtrade
AmericanambassadortoAfghanistan,EAnthonyWayne,saidthatevery
day$10mincashwasbeingsmuggledfromKabultoDubaiinbriefcases,
muchofitfromtheAfghanherointrade,whichhasboomedsincetheUS
invasion.WaynesaidaUSinvestigationfoundthat$190mincashwas
smuggledinjust18sampledays.
OriginallywrittenasananswertoWhatisthedetailedexplanationofhawalabusiness?
Sources:
Dubai'sdarksidetargetedbyinternationalfinancepolice
TracinghawalamoneytransactionsinIndia
HawalaWikipedia
UnderstandingtheDarkWorldofHawala
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WhatisHawalaMoney?Explained
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RaviRanjan,ThemoreIlearn,themoreIrealisedhowmuchIdon'tknow.
WrittenWed

Hawala,awordwhichismakingheadlinesveryoftenthesedaysandcanbeeasily
associatedwithNareshJain,MadhuKoda,HasanAliKhanandmanyotherHawala
Kings.But,WhatexactlyisHawala?Howitworks?andWhyisthisillegal?
WhatisHawala?
Theword"Hawala"meanstrust.Itsisanalternativeorparallelremittancesystem,which
worksoutsidethecircleofbanksandformalfinancialsystems.Hawalaisanancient
systemofmoneytransferwhichoriginatedinSouthAsiaandisnowbeingusedacrossthe
globe.ThissystemmainlydevelopedinIndia,beforetheintroductionofwesternbanking
practices.ItisalsosometimesreferredtoasUndergroundBanking.Thoughitisbeing
usedacrosstheworldtoremitfunds,butitisnotalegalsystem.Itworksonthebasisof
manymiddlemencalledthehawaldarsorthehawaladealers.Thereason,whyHawalais
extensivelyusedinspiteofthefactthatitisillegal,istheinseparableelementoftrustand
extensiveuseoffamilyorregionalaffiliations.

HowHawalaworks?
Hawalaworksbytransferringmoneywithoutactuallymovingit.Inahawalatransaction,
nophysicalmovementofcashisthere.Hawalasystemworkswithanetworkofoperators

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(1)HowdoestheHawalasystemoftransferringmoneywork?Quora

calledHawaldarsorHawalaDealers.Apersonwillingtotransfermoney,contactsa
Hawalaoperatoratthesourcelocation.Thehawalaoperatoratthatendcollectsthe
moneyfromthatpersonwhowishestomakeatransfer.Hethencallsuponhis
counterpartortheotherHawalaoperatoratthedestinationplace/countrywasthe
transferhastobemade.Nowthehawalaoperatoratthetranfereesend,handsoverthe
cashtotheintendedrecipientafterdeductingacertainamountofcommission.Thebest
waytounderstandHawalaisthroughunderstandingasinglehawalatransaction.For
example,ChinappaisataxidriverstayingatUKonanexpiredtouristVisa.Hewantsto
remitsomemoneyforhisfamilyinIndia.Chinappacannotapproachanauthorized
moneytransferagent/bankthereasheisanillegalimmigrantintheUK.ThusChinappa
finallylandsupatahawalaoperatorsoffice,whonotonlypromiseshimtodeliverthecash
tohisnativeplaceinIndiaatareasonablecommission,butalsoinaveryshortperiodof
time.ChinappathenhandsoverthecashtotheUKhawalaoperator.TheUKhawala
operatorthencallshisIndiancounterpartandaskshimtodeliverfundstoChinappas
familymember.AnymemberofChinappasfamilycannowcollectcashfromtheIndian
Hawalaoperator,afterdeductionofcommissionchargesandonproducingan
authenticationcode,whichisgenerallyusedinallhawalatransactions.AreverseHawala
transactioncanalsobeinitiated,whereafatherapproachesthesameIndianhawala
operatorforremittingfundsforhissonstudyinginUKthroughtheUKhawalaoperator.
Inthismanner,moneyneveractuallymoves.Thepositionofthehawalaoperatorsineach
othersbooksgetssquaredoff.

IsHawalaIllegal?
Yes,Hawalahasbeenmadeillegalinmanycountries,asitisseentobeaformofmoney
launderingandcanbeusedtomovewealthanonymously.Ashawalatransactionsarenot
routedthroughbankstheycannotberegulatedbythegovernmentagenciesandhavethus
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emergedasamajorcauseofconcern.Thisnetworkisbeingusedextensivelyacrossthe
globetocirculateblackmoneyandtoprovidefundsforterrorism,drugtraffickingand
otherillegalactivities.InIndia,FEMA(ForeignExchangeManagementAct)2000and
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PMLA(PreventionofMoneyLaunderingAct)2002arethetwomajorlegislationswhich
makesuchtransactionsillegal.

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WhypeoplestilluseHawala?
Inspiteofthefactthathawalatransactionsareillegal,peopleusethismethodbecauseof
thefollowingreasons:
Thecommissionratesfortransferringmoneythroughhawalaarequitelow
Norequirementofanyidproofanddisclosureofsourceofincomeisthere
Ithasemergedasareliableandefficientsystemofremittance
Asthereisnophysicalmovementofcash,hawalaoperatorsprovidebetterexchange
ratesascomparedtotheofficialexchangerates
Itisasimpleandhasslefreeprocesswhencomparedtotheextensivedocumentation
beingdonebythebanks
Itistheonlywaytotransferunaccountedincome
So,thenexttimeyoucomeacrossthewordHawala,Iamsureyouwillbeabletodrawa
pictureaboutthetransactioninyourmind.
Discalimer:IdonotrecommendyoutousetheHawalamethodformoney
transfer.Thisanswerismeantsolelyforthepurposeofquenchingyour
Hawalathirst.

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11/18/2016

(1)HowdoestheHawalasystemoftransferringmoneywork?Quora

ThankYou.
ImageCourtesy:GoogleImages
Source:WhatisHawala?
Update:
QuestionHowdothehawaldarsatthesourceanddestinationsettletheirbalances
betweenthemselves?
AnswerTypically,HawalabrokersorHawaldarsarebusinesspartnersengagedin
importandexportofgoods.Theymaybeengagedinillegaltransfersofgoodslikedrugs
orpreciousgemsandjewellery.
Tomovegoodsillegallytheywouldprintaninvoicewithlessermoneythantheactual
value.Whenahawalaoperatorpaysarecipient,hemightbeactuallypayingofthe
debtsownedbyhimtotheoperator.
Apartfrombusinesssettlements,rarely,thefundingcanbefromillegalmeansasaneffort
tolaundermoney.Thebackpaymentbetweenthehawalabrokerscanhappenasa
counterhawalatransactionaswell.
Thehawalaagentskeepatallyofthemoneythattheyowetoeachother.Oncethe
settlementisdone,theydontkeepanyrecordofthattransaction,makingthehawala
verydifficulttotrace.
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DeepakKumar,Indian,Architect,wantstounderstand,helpandbeknown
.
WrittenJun20,2014

YourbrothercallsyoufromIndia,needsRs.1Lakhforhissemesterfee.Yousay,no
problemoletmelookintoit.
Youapproachyourlocalbankandaskthemtoremit1000toyourbrother.Thebank
saysitwillgiveyouRs95forevery(insteadof100asperprevailingmarketrates)plusit
willchargeyou25forthetransaction.Inshort,you'llhavetospendabout1080tobe
abletosend1Lakhtoyourbrother
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Youthink,there'sgottobeabetterway...andreturnhome.Thesameeveningyoucrib
aboutthistoyournighbourAsiffromKarachi.He,aftermuchdeliberation,givesyoua
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numberandasksyoutocallwithhisreference.Youdothat,andthepersonontheother
endcallsyoutoaseedylittleshopinIlford.
SweatinginthecoldweatheryoutellIqbalaboutyourproblem.Hesays,nottoworry,he
canofferyouabetterpriceandaninstantpayment.HeoffersyouRs98forevery.
whichmeansyoucanpayhim1020andyourbrothergetshis1lakhtheverynextday.
youcalculateandfindthisamuchbetteroffer.Youpayhimthemoneythereisno
receipt,onlyhisword.AfteryouleaveIqbalcallsHameedinHyderabad.Hameed,inturn,
callsyourbrothertoashoeshopintheoldcity,Hyderabad.
Whenyourbrothergetsthere,Hameedgiveshimaplasticbagcontainingabundleof
1000rupeenotes.Hundredinall,itamountsto1lakhrupees.Noquestionsasked,your
brothernervouslytucksthemoneyinhisshirtandisonhisway.

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Youthinkyouhavetransferredathousandquidtoyourbrotherwithoutanybanking
hassles,inrealityit'sHameedwho'stransferred1lakhINRtohisnetworkinBritain
withoutanybankingtrail.
ThisishowaHawalanetworkworks.Withthousandsofexpatsusingiteveryday,the
amountisinthousandsofcroresandisaperfectfaadeforotherillegaltransactions.
Therealfleshhowevercomesfromtransactionsworththousandsofcroresmadeby
industrialistsandpoliticiansandisusedbythehawalahandlerstotofundtheirillegal
tradeslikedrugsandarms,terroristnetworksandantinational'revolutions'.
Dr.SubramanianSwamy
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AbdulHameed,LecturerinInternationalRelations
WrittenJun28

Mostoftheanswersdealwiththesystemquitethoroughly.Buttheinclusionoffunding
forterrorismandillegalactivitiesispurepropagandafabricationandaconvenientlie,as

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(1)HowdoestheHawalasystemoftransferringmoneywork?Quora

everythingthathappensforactionswhichgovernmentsareslowtoaddress,especiallyfor
thepoorandneglectedmassofthepopulation.Takethisscenario:Apooryoungman
fromareallyremotevillagefromSouthAsiamustersthecourageandthemoneytogotoa
foreignlandtoworkandearnforhisfamily.Imaginetheproblems,pitfallsandunknowns
hehastoface.Onceinthefarawayunknownlandwithstrangepeople,strangelanguage
andstrangecustomsandbehaviourheisforcedtowork12to18hoursdaily,usually
withoutadayoff,forameagrepittanceofapay.Heenduresharshtreatment,sometime
brutalandmerciless,foodthatisunfitforhumans,livingconditionsborderingonthe
unimaginable.Andhehastosaveeverypennytoberemittedhome.Butathomenobody
knowswhattheoutsideofabanklookslike,letalonetheinside.Goingtoabankwouldbe
alongexpensivejourney.Andpoorguyifhedecidestoremithomehisearningsthrougha
bankhehastopaythebankexchangerate,remittancefeesandchargesthatmight
amounttoabigportionofthesmallamountofhishardearnedsavings.Ifheisworking
inaremotelocationoverseasthenhistraveltothebank,ifheisallowed,andthecosttoo
hastobecountedin.Hewouldmostprobablyallowedtogotothebank,butwithoutthe
dayswages!Nowbringinthehawalaman.Lookattheserviceheprovidesandthesavings
heaffords.
Onthefundingillegalarmstradefallacy.Theexchangeofmoneyisonlyonefacet.What
aboutthesellingandbuying,movementandstorageoftheweapons?Andwhoarethe
peoplewhofomenttheproblemsthatneedweaponsforitssolutions?Aretheythe
hawalas?Whoactuallyisbehindthefundingofthearmspurchase?Goingafterthe
hawalasisalameexcuseandisakintoshootingthemessenger.
Onthepresentdayfadofassociatingeachandeverythingtoterrorism,countthe
magnitudeofdeath,maimanddestructioncausedbystaterunterrorismusuallyand
everytimeonfilmsydrummedupissuestowitthestateterrorismcausingthedestruction
ofAfghanistan,IraqandSyria.TheinvasionofIraqwasbasicallyofafilialsonwantingto
restorethehonourofthefamily.(BushJr.wantingtosavefaceforthefamilybyremoving
themosaicofBushSr.faceembeddedintheentranceofahotelinBaghdad.)
Whenyoukillanddestroywholefamiliesandcommunities,whatdoyouexpecttheir
childrentodo?Thehumannatureofwantingtoseekjusticebyretaliationisnamed
terrorism.Butitisalsocivilisedasseekingjusticeandromanticisedasresistance.
So,doweseethatthehawalaweredoingawonderfulhumanserviceatverylowcosttoa
populacethattheestablishedsystemmarginalisedandtotallyspurnedasthepoor.
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SiddharthJain,Iamgoodatearningit!!Simple!!
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Kartik

InHawalathereisNosystemassuch,butforeasyunderstandingitamoneytransfer
routewhichskipsthebankingandlegalchannels.
Let'stakeanexample,yougotodubaiforholidayandyoufindsomethingnicetobuybut
don'thaveenoughmoneytobuyit.YouhaveyourunclelivinginDubaifromwhomyou
takesomemoneyforyourshoppingandpromisehimtoreturnthemoneyinIndiaathis
nativehome.Now,assimpleasthissoundeventhismoneytransactionisalsoHawala!!
Cozyouskippedanentirebankingchannelformulticurrencytransaction!!
Similarlyasothershaveexplainedsimilarworkisdonebymanypeopleforamuchsmaller
feesthenaregularbankingchannel.Thuscreatinganundergroundchannelformoney
transactionwhichcauseahugelossforallthenationsinvolved.Butevenscarierthisis
alsothebiggestrouteforterrorismfunding.
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