Hawala is a globe-spanning informal funds transfer (ITF) system that has been used since the eighth century to transfer funds anywhere in the world at the speed of information. It is incredibly versatile and simple on the user-side, but has also been accused of enabling crime and terrorism.
In this episode, we cover the basics, how it relates to today's payments industry, and how hawala can teach us to optimize our own networks.
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Sources:
(Organisation for Economic Co-Operation and Development (OECD), "Report on Money Laundering Typologies 1999-2000," Financial Action Task Force, FATF-XI, February 3, 2000
Mohamed El-Qorchi, Senior Economist, Monetary and Exchange Affairs Department, IMF, "The Hawala System" Published from Finance and Development, December 2002, Volume 39, Number 4 accessed at https://www.gdrc.org/icm/hawala.html
Hawala - Overview, History, How It Works, and Money Laundering
Corporate Finance Institute
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