Remember Hawala Attracts FERA (Foreign Exchange Regulation Act) of IPC.
Our life-long experience gave us a lesson which wrote deep into head, that we must not trust even our real siblings as far as money is concern, and we all admit it. However, we have also been told that exception does exist, it may be bitter or pleasant. Here, it is pleasant.
This game of huge money laundering is played so cunningly, so that no leeway for law enforcement agencies is given. The network, Hawaladar is used to work in depends on trustworthiness of each and every peers, and so, no paper work is required. You can understand well that unaccounted money is really called Black Money. No taxes, no bank charges, no discrepancies and no documentation makes Hawala a perfect crime.
In brief, Hawala is a clever game of fund transferring, internationally and locally. Huge sum of hard cash is taken and delivered wherever you want. No question is asked. More surprisingly, no documentation is required.
Earlier times, IFT systems were used for trade financing. They were created because of the dangers of travelling with gold and other forms of payment on routes beset with bandits. Local systems were widely used in China and other parts of East Asia and continue to be in use there. They go under various names—Fei-Ch’ien (China), Padala (Philippines), Hundi (India), Hui Kuan (Hong Kong), and Phei Kwan (Thailand). The hawala (or hundi) system now enjoys widespread use but is historically associated wThith South Asia and the Middle East…
The Underground Banking:
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