Abstract
Hawala is an informal system of money transfer that is widely used in the Middle East, the Indian subcontinent, the Horn of Africa and North Africa. The Hawala system predates the current international banking system, having been used in the Muslim world before European influences permeated the region. In western countries, Hawala is popular among immigrants, who use it to send money to their relatives back home. The main reasons for Hawala’s popularity as compared to other means of money transfer include its cheapness and anonymity. However, some countries such as India and Pakistan have outlawed Hawala because ...
