Millions of people around the world do not have access to formal banking or means of transferring money across borders. A popular substitute is the “Hawala House,” an efficient and informal alternative money exchange system. In this episode, we explore this ancient form of banking that operates “off the books.” But while Hawala Houses boast a deeply trusted and reliable network of brokers, they also provide a secure way of financing illicit activities such as terrorism.
Take a look at some of our favorite articles that we came across while researching this topic:
- The Hawala Alternative Remittance System and its Role in Money Laundering, Department of Treasury, Patrick M. Jost & Harjit Singh Sandhu
- How hawala money-transfer schemes are changing, The Economist
- Following the Migrant Money Trail, Wall Street Journal, Giovanni Legorano & Joe Parkinson
Photo Credit: Images of Money Flickr Account