1. An informal system of transferring money across distances without physical currency moving between locations, based on trust and a network of dealers.
Usage: Also called hundi in South Asia; Common in Middle Eastern, South Asian, and African countries; Used for legitimate remittances and international transfers

Examples

• Many migrant workers use hawala to send money home to their families quickly and cheaply.
• The hawala system operates through a network of trusted brokers who settle accounts periodically.
• She transferred funds to her relatives abroad using hawala instead of a traditional bank.
• Hawala has been used for centuries in Middle Eastern trade and commerce.
• Regulators monitor hawala transactions to prevent misuse for illegal purposes.
• The hawala dealer charged a small commission for facilitating the international transfer.