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

Системы неформального перевода денежных средств: анализ неформальной системы хавала
Mohammed El Qorchi, Samuel Munzele Maimbo, John Wilson, MEl Qorchi@imf.org, SMaimbo@imf.org, JWilson@imf.org
2003-01-01

financial abusefiscal and monetary implicationshawala systeminformal funds transfer systemsregulatory and supervisory responses
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
1
It reviews existing regulatory and supervisory responses to informal hawala systems.
2
It situates hawala’s development within its historical and socioeconomic context.
3
The analysis identifies operational characteristics that may make hawala susceptible to financial abuse.
4
The paper analyzes the informal hawala system, an informal funds transfer mechanism prevalent primarily in the Middle East and South Asia.
5
The paper examines hawala’s fiscal and monetary implications for both remitting and recipient countries.

The informal hawala funds transfer system

The hawala system’s historical and socioeconomic evolution, operational susceptibility to financial abuse, fiscal and monetary implications, and regulatory and supervisory responses

Publication Details
Publication Date
2003-01-01
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Authors
Mohammed El Qorchi
Samuel Munzele Maimbo
John Wilson
MEl Qorchi@imf.org
SMaimbo@imf.org
JWilson@imf.org
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