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> That makes SWIFT sound like a sort of digital Hawala system. I chuckled, thanks a lot. But numeric money and banking exchange is already based on trust, trus
by tuyiown 5y ago
> That makes SWIFT sound like a sort of digital Hawala system.
I chuckled, thanks a lot. But numeric money and banking exchange is already based on trust, trust of correct and consistent traceability of exchanges being written by both parties. Hawala is solely based on reputation, and has the very convenient side effect that there is no traceability whatsoever. Doesn't looks like swift to me :)
- alangibson 5y agoOne thing I always wondered: is there ever a settlement between Hawala agents? It seems like someone could get so unbalanced that they would need to balance out.
- manquer 5y agoHawala can be out of balance within network. A lot of it was used for remittances etc however the agents had other businesses which helped them keep balance, laundering , high risk or payday loans etc outside the hawala system
- spiralx 5y agoApparently money gets laundered internationally by under-invoicing via front companies such as import/export businesses, travel agents or foreign exchange shops. https://www.treasury.gov/resource-center/terrorist-illicit-finance/documents/fincen-hawala-rpt.pdf https://www.treasury.gov/resource-center/terrorist-illicit-f...