by angela cruz

What is hawala and how it works?

It is a non-physical way of sending money.

It is based on the way hawaladars lend money in the Middle East, Africa, and India outside of the Western financial system.

how does hawala operate

?

Hawala transfers money without moving it. Steps include:

step 1: An international Hawala client transfers money. Migrants send money home. A charity helps a needy person or team.

Step 2: Hawala calls, faxes, or emails a local agent. Agents generally operate their own businesses and have global relationships. 

Step 3: A businessman is told to provide cash. He provides the amount, recipient's name, address, and phone number. Transaction IDs.

Step 4: The recipient's Hawala agent distributes the money. Instead of ID papers, the receiver might use the ID code.

Step 5: The recipient's Hawala agent distributes the money. Instead of ID papers, the receiver might use the ID code.

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