noun
- Plural of hawala; informal money transfer systems used in some countries, especially in the Middle East, South Asia, and Africa, where money is sent without physical currency crossing borders.
Usage: Also called 'hundi' in some regions; Often used in international finance and banking contexts; Can refer to both the system and individual transactions
Examples
- Many migrant workers use hawalas to send money home to their families.
- The bank investigated suspicious hawalas that moved large sums across borders.
- Hawalas operate on trust and personal networks rather than formal documentation.
- Regulators have increased scrutiny of hawalas due to money laundering concerns.
- In some developing countries, hawalas are more accessible than traditional banks.