The Hawala Extortion Method - 18441 Words

HAWALA INTRODUCTION [pic] Among the methods terrorists worldwide use to move money from regions that finance them to target countries some hardly leave any traceable trail. As regulators learned recently, one of the weak points in the payments chain through which illicit funds can enter is a system of traditional trust-based banking originating in southern Asia which is known as hawala. The word hawala is Hindi meaning trust or exchange. Often used in relation with the word hundi which stands for bill of exchange hawala is an unofficial alternative remittance and money exchange system enabling the transfer of funds without their actual physical move. Traditional financial institutions may be involved†¦show more content†¦For instance, in May and June 2001 the State Bank of Pakistan was said to have turned to hawala shops in Islamabad to buy dollars in order to support the own currency. Even top-ranking Western corporations turn to hawaladers for transactions to regions without a modern western-style banking system. In several OECD (Organization for Economic Cooperation and Development) member countries, licensed traders legally perform hawala. OECD Member Countries (And Year of joining) |Australia (1971) |Austria (1961) |Belgium (1961) | |Canada (1961) |Czech Republic (1995) |Denmark (1961) | |Finland (1969) |France (1961) |Germany (1961) | |Greece (1961) |Hungary (1996) |Iceland (1961) | |Ireland (1961) |Italy (1961) |Japan (1964) | |The Netherlands (1961) |New Zealand (1973) |Norway (1961) | |Poland (1996)Show MoreRelatedNature and Causes of Global Money Laundering8912 Words   |  36 Pages 9 Money laundering and Globalization 13 Nature of Money laundering 14 Methods of Money Laundering 17 Causes of Money laundering 19 The Economic Effect of Money LaunderingRead MoreThe Growing Problem of White Collar Crimes in India19963 Words   |  80 Pageswill lose faith in us†- Dr Radhakrishnan Methodology The research methodology used for the present research article is traditional Doctrinal research method. As most of the information can be sought form the available literature. So the researcher has chosen doctrinal method as method of research for the present article and has used books, journals, research articles for preparation of the same. Objectives of the study The main objectives of the research work is ToRead MoreMoney Laundering13123 Words   |  53 Pageswhich is illegally obtained, so as to make it appear to originate from a legitimate source. Money Laundering is being employed by launderers worldwide to conceal criminal activity associated with it such as drug / arms trafficking, terrorism and extortion. Robinson states that â€Å"Money laundering is called what it is because that perfectly describes what takes place – illegal, or dirty, money is put through a cycle of transactions, or washed, so that it comes out the other end as legal, or cleans