Hawala in the 21st century
Hawala networks are once again becoming a source of concerning headlines, as operators of the notorious informal money transfer system are reportedly using digital assets and the latest fintech to move money under the noses of regulators and law enforcement. A new joint report by the FATF and the OECD says hawala networks are now moving billions of dollars around the world every year. More than 80 per cent of reporting jurisdictions now identify hawala and similar service providers as principal channels for professional money laundering, and the networks continue to innovate to offer a product that is comparable, and arguably even better, than anything the formal banking system has to offer. Among the ways is that hawala operators often offer competitive exchange rates with 'zero fee' instant transfers, unlike banks and other legal money transfer services, which charge fees and taxes, and could take several minutes, hours, or days, depending on the value of a transaction ...