Can someone please explain how exactly a Hawala transaction works ? How do people use it to hide their black money ?

Question

Can someone please explain how exactly a Hawala transaction works ? How do people use it to hide their black money ?

In: 10

Answer 1

It works similar to a bank transaction, except it’s human brokers talking to each other on the phone, rather than banks sending electronic messages. Here is the complete explanation:
https://en.wikipedia.org/wiki/Hawala#How_hawala_works

It can be used to move criminal money because there is no involvement of official banks, and no electronic record. it does not sounds like they need ID’s either. But police can still get brokers to talk if they can find them.