An agent, broker or courier in an hawala system; like a good bookie, an hawaladar keeps the numbers and transaction 'nodes' all in his/her head, all through an honor system, something Westerners can't seem to do. They may appear to be in the import-export or translator business.
How Hawala works, as best understood in the West:
1. A customer approaches a hawala broker X hawaladarin one city and gives a sum of money that is to be transferred to a recipient in another, usually foreign, city. Along with the money, he usually specifies something like a password that will lead to the money being paid out;
2. The hawala broker X calls another hawala broker M in the recipient's city, and informs M about the agreed password, or gives other execution instructions for the funds;
3. The intended recipient who also has been informed by A about the password now approaches M and tells him the agreed password. If the password is correct, then
4. M releases the transferred sum to the end recipient, usually minus a small commission.
5. Hawaladar X now basically owes hawaladar M the money that M had paid out to B; thus M has to trust X's promise to settle the debt at a later date.
No promissory notes move between the hawala brokers.
1. A customer approaches a hawala broker X hawaladarin one city and gives a sum of money that is to be transferred to a recipient in another, usually foreign, city. Along with the money, he usually specifies something like a password that will lead to the money being paid out;
2. The hawala broker X calls another hawala broker M in the recipient's city, and informs M about the agreed password, or gives other execution instructions for the funds;
3. The intended recipient who also has been informed by A about the password now approaches M and tells him the agreed password. If the password is correct, then
4. M releases the transferred sum to the end recipient, usually minus a small commission.
5. Hawaladar X now basically owes hawaladar M the money that M had paid out to B; thus M has to trust X's promise to settle the debt at a later date.
No promissory notes move between the hawala brokers.
by ancianita November 20, 2013
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Dave is asking back the money he sent to his family months earlier to pay for his broken Chevy Impala 2016. And he asked his younger brother to hawalala him the money.
by ayzosh gelete August 17, 2024
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