The Hawala Alternative Remittance System and its Role in Money Laundering

This paper presents a description of the hawala (also referred to as hund alternative remittance system. Hawala is an ancient system originating i South Asia; today it is used around the world to conduct legitimate remittances. Like any other remittance system, hawala can, and does, p role in money laundering. In addition to serving as a 'tutorial' on hawala transaction, this paper will also discuss the way in which hawala is used facilitate money laundering.