Hawala Banking
Katy Thorne QC
Barrister
Doughty Street Chambers

This seminar will cover

What is Hawala banking?
• informal money transfer systems or alternative remittance system
• money is passed on through a network of brokers or agents without the actual/physical movement of cash
• the transmission of money in ways other than the regular banking routes and hence sometimes called underground banking
• Based on trust, reputation and honour

Origins
• originating in South Asia, as silk trade developed, hawala is popular all around the world
• been in existence for hundreds of years, and pre-dates modern day financial systems
• Also known as “mirror banking” or “chops” in China, “Hundi” in parts of India, “black market peso exchange” in south America, albakarat (etc etc)

Often linked to travel/import-export businesses
Rajesh gives Dinesh money.
Kiran pays out hawala to Rajesh’s sister Smitha
Now Dinesh owes Kiran money
Dinesh pays Kiran’s customer’s Dubai hotel bill

Trust
• Very little paperwork – based on trust and honour
• Rejash must trust Dinesh. Smitha has to trust Kiran. Two brokers have to trust each other
• Hawala is often based on ethnic or family trust systems

Full speaker’s notes are available in the mebers login area with the video seminar

You can contact Katy Thorne QC via her clerks

0207 400 9074