WHAT IS HAWALA BROKING ?

sunandaC

New member
WHAT IS HAWALA BROKING ?

Hawala arose out of the gold smuggling operations in South Asia during late 1960s and 1970s, a time when local governments had all but banned gold imports.

Smugglers used dhows—originally fishing boats, but later speedboats—to smuggle gold from Middle Eastern ports such as Dubai and Abu Dhabi. Once the gold reached South Asia, smugglers sold it through a network of dealers, where it ended up in legitimate jewelry stores all across the subcontinent.

But this left smugglers with a problem that like the one that Colombia's drug runners face—how do you get the cash back home?

Smugglers found the solution in the growing number of Indians and Pakistanis working in the Persian Gulf states. These expatriates, often single men, needed to send home money to their families.

Going through the official banking channels meant that the money could only be converted at the government exchange rate, which was usually lower than the market price. The smugglers could offer better exchange rates because they were making profits on the gold.

Over time, the gold smugglers, jewelry merchants, and others built an efficient mechanism for delivering money from the expatriate in the Middle East—and increasingly as well in Southeast Asia, the United Kingdom, and even from North America—to families in Pakistan and India.

The hawala money route continues to serve those who want to move money outside the official banking system. Drugs have replaced gold smuggling, especially in Pakistan. As drugs are moved out of the country, the hawala route is used to pay for their purchase in Afghanistan-Pakistan.

The Pakistan-Afghanistan region also imports huge quantities of consumer goods, including truck tires and appliances. Less importantly, the hawala route continues to be used by those who want to transfer money in an emergency.

For a check to clear through a bank, it still takes almost one month. The hawala operators, most of whom run legitimate businesses, can transfer the money much faster, often in less than a week.

The use of hawala networks by terrorist organizations is easy and could pass unnoticed in the large bulk of "legitimate" transactions undertaken by expatriates South Asians.
 

rosemarry2

MP Guru
WHAT IS HAWALA BROKING ?

Hawala arose out of the gold smuggling operations in South Asia during late 1960s and 1970s, a time when local governments had all but banned gold imports.

Smugglers used dhows—originally fishing boats, but later speedboats—to smuggle gold from Middle Eastern ports such as Dubai and Abu Dhabi. Once the gold reached South Asia, smugglers sold it through a network of dealers, where it ended up in legitimate jewelry stores all across the subcontinent.

But this left smugglers with a problem that like the one that Colombia's drug runners face—how do you get the cash back home?

Smugglers found the solution in the growing number of Indians and Pakistanis working in the Persian Gulf states. These expatriates, often single men, needed to send home money to their families.

Going through the official banking channels meant that the money could only be converted at the government exchange rate, which was usually lower than the market price. The smugglers could offer better exchange rates because they were making profits on the gold.

Over time, the gold smugglers, jewelry merchants, and others built an efficient mechanism for delivering money from the expatriate in the Middle East—and increasingly as well in Southeast Asia, the United Kingdom, and even from North America—to families in Pakistan and India.

The hawala money route continues to serve those who want to move money outside the official banking system. Drugs have replaced gold smuggling, especially in Pakistan. As drugs are moved out of the country, the hawala route is used to pay for their purchase in Afghanistan-Pakistan.

The Pakistan-Afghanistan region also imports huge quantities of consumer goods, including truck tires and appliances. Less importantly, the hawala route continues to be used by those who want to transfer money in an emergency.

For a check to clear through a bank, it still takes almost one month. The hawala operators, most of whom run legitimate businesses, can transfer the money much faster, often in less than a week.

The use of hawala networks by terrorist organizations is easy and could pass unnoticed in the large bulk of "legitimate" transactions undertaken by expatriates South Asians.

Hey buddy,

Here I am up-loading Hawala Alternative Remittance System and its Role in Money Laundering, please check attachment below.
 

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