Informal Funds Transfer Systems: An Analysis of the Informal Hawala System

Mohammed El Qorchi, Samuel Maimbo and John Wilson

No 2003/004, IMF Occasional Papers from International Monetary Fund

Abstract: Since the terrorist attacks of September 11, 2001, there has been increased public interest in informal funds transfer (IFT) systems. This paper examines the informal hawala system, an IFT system found predominantly in the Middle East and South Asia. The paper examines the historical and socioeconomic context within which the hawala has evolved, the operational features that make it susceptible to potential financial abuse, the fiscal and monetary implications for hawala-remitting and hawala-recipient countries, and current regulatory and supervisory responses.

Keywords: OP; IFT system; transaction; remittance system; IFT; authority; IFT transaction; transfer system; Hawala transaction; Currencies; Remittances; Financial sector; Commercial banks; South Asia; Middle East; Southeast Asia; North America; South America (search for similar items in EconPapers)
Pages: 64
Date: 2003-08-18
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